It's The Economics, Stupid!
Features:
7. The Misguided Growth of UK Banks, Building Societies and Assurance Companies
- Money Supply and the lethal asset virus
- Asset Money Supply
- Seepage into the economy
- The crane index
- Unemployment figures steady but ratio of ‘apples and oranges’ different
- Retail sales figures steady but ratio of ‘apples and oranges’ different
- Difference between positive and negative excess money
- Confidence incites us to buy quickly and sell slowly
- Negative excess money
- What about real interest rates?
- What influences the growth of money supply?
- ‘Slow down you are lending too fast, now’
- ‘But we need to go faster and faster’
- ‘We are feeling flush – write off the LDC loans’
- What have we done? Whoops
- But they said that they were OK
- The war was the catalyst
- Banks confidence in companies falters
- If you can repay your loans, you can still have them
- ‘What do we do now? We need asset security and confidence’
- Confidence in banks falters
- A fine mess you got us into this time, Stanley
- Speak to us before you spend anything
- Just in case I am wrong, investigate more
- The efficiency of the banking system
- Greenspan was probably the only trained financial engineer
- But how can the economy recover when there isn’t a banking system?
- The important difference between 2002 and 1992
- This time things are very different.
- This time it is the young that have to be made unemployed.
- Governments please listen
- Money Supply Growth does not mean inflation
- Raising money from the capital markets v the banking system
- The multiplier effect and the velocity of circulation of bank money v stock market money
- What happens to money raised on the stock market?
- *** Repaying Debt
- *** Holding as cash
- *** Funding existing cash outflows
- *** Investing to reduce costs
- *** Investing for expansion
- Financial deregulation and the 1980s
- The clearing banks not playing – there will be no tears yet
- Lending on the right basis
- We need to know you
- Don’t tell the taxman
- All together now
- You can’t lose – nor can we
- Essex boys made good
- Oh dear! It will end in tears
- It is so easy – and I am sure that they like me
- How about some deep-sea fishing?
- There’s money to be made
- We must show some conservatism – but not too much!
- Go for it boys! We are right behind you
- Bonfire’s burning – bonfire’s burning
- Have they thought about the future?
- Building Societies and Life Assurance Companies
- The endowment assurance policy risk
- Of course it is best advice – we are regulated
- You keep it – do you want some more?
- Everything is wonderful
- We know better than you
- Hot money will disappear
- More for your money – switch longer
- And more security
- Move away from base rates
- Not a secure future
- The Endowment Life Assurance Disaster
- Well designed for the financially unsophisticated
- Secure performance
- But, but the figures were also good
- Upwards and onwards – forever and forever
- ‘But we can get better performance’
- ‘We were right’
- ‘Honey, I shrunk the surplus’
- ‘I need to believe you’
- Unsustainable costs
- Beware! They are punting your house
- Complacent security
- Have you heard the actuary joke?
- OBSERVATION: You cannot keep selling the wrong products to the wrong people at the wrong prices without being found out eventually
- The true cost of endowment assurance for the policyholder
- Obviously wrong!!
- The press is on to something. Is it pyramid selling?
- Fundamentally mismatched
- And oh dear! Oh dear! Who could have guessed?
- But the building society recommended them
- Practice safe investments; use a conbond!!
- ‘Guaranteed 7% - only a few left’
- Sometimes not even in the small print
- I now know the secret
- And equities always go up – always
- Sub market adjustment
- Speculate to accumulate
- It’s only their pin money
- Regulator bites their legs
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