Reply to: Bucking the trend?

[Cyberman]

I prefer to think of the recession as getting rid off the rot in the economy, and reinforcing the good practice of prudent financial management in households. Most people forgot how to be thrifty through the nineties and noughties.

I think it will get rid of the rot in this government for at least 20 years !! Rather ironic that you mention financial prudence in households when our major problem has been financial mismanagement of our government.

[thelace]

Will be a masisive commodities rush in about 6 months probably as the reality of high inflation dawns on us all. I am tempted to transfer my L&G pension into Gold and store it in a SIPPS whilst the inflationary cycle unwinds. Although in theory stocks and shares should also rocket if inflation kicks into overdrive?

My Clientco is in the Aluminium business and the price of aluminium has plummeted in the last 3 months. Not all of this is the currentl doom and gloom, but seasonal. Should be worth a punt!

[Solidec]

Will be a masisive commodities rush in about 6 months probably as the reality of high inflation dawns on us all. I am tempted to transfer my L&G pension into Gold and store it in a SIPPS whilst the inflationary cycle unwinds. Although in theory stocks and shares should also rocket if inflation kicks into overdrive?

[BlasterBates]

Just wait for Quantative Easing, then cash will be pants as well.

[PM-Junkie]

What a lot of firms who are struggling have forgotten is that cash is king....you can have all the orders and all the assets you like, but if your cash flow is pants and something unexpected happens, you're history.

Basic, basic stuff. Just goes to show there are a lot of idiots running companies these days ( the word "Woolworths" kinda pops in there).

Equally there are loads of companies that are not being run by idiots. Reason for a small bit of optimism methinks.

[Solidec]

Lets hope 'Gearing' and 'Leveraging' are terms of yesterday as we move forward. And that big corps learn that amassing huge debts in the name of growth is a recipe for disaster.

And that no Chancellor in the future will EVER claim to have abolished Boom and Bust again!

[Doggy Styles]

I'm with you there Solidec.

My problem is that it's a bit too drastic, happening all at once rather than by continual evolution.

But maybe it's a good thing because, as well as lame duck companies, it should banish that lame duck Labour party to oblivion for a long time too.

[thelace]

3 months into Contracting and my business is doing very nicely thank you very much!

Solidec is of course correct! Many of these businesses have been on the verge of bancrupcy for years, and if a 1% downturn is enough to put them over the edge, they were hardly stable to begin with.

Zavvi put all of its eggs in one basket with regards to suppliers doh! But they weren't the only ones, WHSmith and Borders (amongst others) are struggling to find stock too.

It is a tough world out there, but frankly, it always has been.

[Solidec]

They would never vote for me, I am not scottish, I am not God-fearing and my Eugenics programme is a bit too radical

[DimPrawn]

Businesses that have gone into administration have either been lame ducks for years or have been effected by said lame ducks.

Retail figures you mentioned are actually extremely healthy all things considering. When the UK economy contracts by upwards of 1%, then pre tax profits down only 4-7% is staggeringly impressive for retail imo.

Yes it was technically good news I reckon. Some sectors will come out of this downturn (hate that phrase, its a bloody recession, calle a spade a spade Mr Brown) very nicely.

Just think the few customers that Woolworths DID have will now shop at your local supermarket. Savvi customers will go to HMV as the last major bastion of entertainment media outlet on the highstreet.

I prefer to think of the recession as getting rid off the rot in the economy, and reinforcing the good practice of prudent financial management in households. Most people forgot how to be thrifty through the nineties and noughties.

All in all I am looking forward to a better UKPLC once the recession has run most of its course. In the meantime, batten down the hatches, watch your expenditure and fight on.

Solidec for PM.

[Solidec]

Businesses that have gone into administration have either been lame ducks for years or have been effected by said lame ducks.

Retail figures you mentioned are actually extremely healthy all things considering. When the UK economy contracts by upwards of 1%, then pre tax profits down only 4-7% is staggeringly impressive for retail imo.

Yes it was technically good news I reckon. Some sectors will come out of this downturn (hate that phrase, its a bloody recession, calle a spade a spade Mr Brown) very nicely.

Just think the few customers that Woolworths DID have will now shop at your local supermarket. Savvi customers will go to HMV as the last major bastion of entertainment media outlet on the highstreet.

I prefer to think of the recession as getting rid off the rot in the economy, and reinforcing the good practice of prudent financial management in households. Most people forgot how to be thrifty through the nineties and noughties.

All in all I am looking forward to a better UKPLC once the recession has run most of its course. In the meantime, batten down the hatches, watch your expenditure and fight on.

[ace00]

Don't forget the impending ice age.

[Doggy Styles]

My point is, if announcements on Q4 earnings continue in this vein, I wonder if and at what point people might say "hang on, this might not be as bad as we thought"?

It will be worse than we thought.

It's certainly worse than the government thought. In the November PBR (or whatever it was called) they predicted us returning to growth in the second half of this year.

[PM-Junkie]

Yes...how dumb of me posting something other than saying how terrible everything is.

I don't know what I was thinking, sorry.

[BlasterBates]

...or if its worse? what would happen then?