This current situation and financial problems

[nelly55]

Watching the news this morning it just shows the state of this country over money.No one has a rainy day funds just look at the business that are crying out from multi nationals to the small one man business.

 

[Hindsight]

Watching the news this morning it just shows the state of this country over money.No one has a rainy day funds just look at the business that are crying out from multi nationals to the small one man business.

But to many this is not a rainy day its a f'ing Hurricane plus Earthquake with a good dose of flooding to follow.

 

[Farfrae]

Yep funny how businesses like the airline's etc want to privatise the profits and socialise the losses. Keep paying dividends to the shareholders in good times but want the taxpayer to cough up when times are bad. They could have course have paid for insurance against such an event (but chose not to) or they can borrow, at record low rates, against their assets to fund themselves through the crises.

I thought most here were against people getting 'something for nothing' .

 

[Sharpy]

We have a friend who works in aircraft maintenance, as does his son. They have just been told their wages will be halved for the next 2 months, but working hours remain the same. How do you cope with that?

 

[GeorgeK]

Yep funny how businesses like the airline's etc want to privatise the profits and socialise the losses. Keep paying dividends to the shareholders in good times but want the taxpayer to cough up when times are bad. They could have course have paid for insurance against such an event (but chose not to) or they can borrow, at record low rates, against their assets to fund themselves through the crises.

I thought most here were against people getting 'something for nothing' .

What assets? No one owns anything these days

 

[fgc325j]

Watching the news this morning it just shows the state of this country over money.No one has a rainy day funds just look at the business that are crying out from multi nationals to the small one man business.

What might be a problem is that there are a LOT of business which were generating just enough cashflow to service
ONLY the interest on their loans. Now these businesses will be suffering reduced cashflow.
So those banks which have these "non- performing loans" on their books will now
try to screw more money out of those who CAN service their debts, thereby putting these viable businesses under
more stress, when these viable businesses themselves are suffering reduced cashflow due to the fallout from the virus.
It's a house of cards.

 

[suffolksmallholder]

The exec 'bonus' culture is much to blame here as well. Neoliberalism started my the dreadful Mrs T has become an accepted normal. Simplified; Putting money before people. Nasty.

SS

 

[milkloss]

It is very bad for some businesses. Goods are also being sent back/having to be picked up because people have decided they don't want them or won't be able to afford them. Not much hope after the event either because everyone will be broke until work starts again.

 

[Treg]

2 members of my family have been told not to come into work while this virus is around, both on full pay ...both work for local government. Another family member laid off yesterday worked for a Air charter company.

 

[Campbell]

I hope government will be ruthless in dealing with anyone taking advantage or profiteering in the current situation. Just noticed heating oil price is rising as world oil is falling...........

 

[Wombat]

Child minder having to lay off all her staff this evening as she doesn’t have enough key workers to keep them all.

As some of said this isn’t a rainy day, it’s much more than this.

Some people will get no pay for months, just look at the bps threads on here when the money hasn’t come in Dec, seems a lot of people don’t have money for the “rainy day”

 

[hoff135]

As above lot of companies doing everything they can to avoid paying tax now expect the tax payer to bail them out.

So how long before govt start skimming off accounts of people who do have savings?

 

[onthehoof]

Interestingly the Chinese stock market is is up 5% today and still at/near record levels, apparently the only thing anyone is putting money into at the moment is dollars and guess who owns the vast majority of US debt.
Methinks the Chinese are going to do pretty well out of this long term.

 

[Wombat]

As above lot of companies doing everything they can to avoid paying tax now expect the tax payer to bail them out.

So how long before govt start skimming off accounts of people who do have savings?

There are often threads on here about how to reduce the tax bill and what shiney metal to buy, so as a group I am not sure we are in a position to lecture

 

[Tubbylew]

I remember my accountant telling me, rather smugly, a couple of years ago, that savings were old fashioned, it's a poor job if you ask me, but with interest rates so low saving doesn't pay.

 

[Tubbylew]

Just to add, i'm glad that i can eat my savings, if things do get really bad!

 

[hoff135]

There are often threads on here about how to reduce the tax bill and what shiney metal to buy, so as a group I am not sure we are in a position to lecture

Agree up to a point. But if we buy a tractor we are helping the economy and creating work for those that make it. Lot of these firmsare using loopholes to avoid or move money offshore or whatever. Then paying themselves millions in bonuses

 

[Hindsight]

What assets? No one owns anything these days

But owning an asset does not equate to cash! Cash only comes from converting the asset to cash, which requires a willing purchaser, or if a lender will lend against the asset.

If you are in the middle of the Sahara desert , the sun glaring down, with a bottle of water and your colleague has a bar of gold, who is the wealthier?

 

[Tubbylew]

Interestingly the Chinese stock market is is up 5% today and still at/near record levels, apparently the only thing anyone is putting money into at the moment is dollars and guess who owns the vast majority of US debt.
Methinks the Chinese are going to do pretty well out of this long term.

It's a sharp shock, but we'll be back to our all consuming, wealth driven bad habits, with avengance in a year or two. T'has ever been thus!

 

[Oscar]

Obviously things can still get worse but at the moment surely 75% plus of buisness should just carry on although in a different way( working from home etc)?