WheelchairDriver

The UK credit rating was just dropped from its triple A rating. To match the USA and france.

What beats me is why the borrow at all. If I was running the country it would be run as I run my own life.

I have no credit, never have, dont do anything I cant afford. Why because obviously I would be poorer if I bought anything on credit.

Want a car? Sofa? Kitchen? Save. House? Yes get a mortgage, buy cheap, do the repairs, sell, make a profit, buy another wash rinse and repeat until you have no mortgage.

I live twice as well as my x for eg. On 1/3rd the income. Because she cant afford to buy anything without credit, BECAUSE she buys everything on credit... And pays rent.

Why does my goverment feel its ok to borrow money in my name? Because they are stupid barstewards.

I was always raised that Credit cards and debt were a bad thing, So I only have a credit card to purchase things online (i actually rarely use it now and just use my debit) and pay it off before any interest is applied.

unfortunately some people don't have an option with renting, unless they have parents they can stay with until they can afford a deposit

No. Rent a basic room (garden shed) and save hard...

But in readyness for later life I bought a flat, and let it out when I was 18 and fortunate enough to live with my parents. The tennents paid for that mortgage, and a little extra for 20 years. Then I sold it for almost 3 times what it cost. It paid much of the cost of the house I am in now.

I have never used credit, dont have sat TV or even a TV set, and no standing orders. I spend money on investments like house, insulation, double glazing, solar panels, 100 percent efficient gas fire, fancy heating controls, LED lighting. Anything that REDUCES outgoing costs in the future.

Use eBay for a "new" phone every 5 years or so and spend under £15 a year on calls, no phone contracts, never use a land line, imported a van at half price (cash), and so on. And things I need to have like computers etc I buy trade and open trade accounts. Anything needing repairs or maintainance I do myself, and can fix anything. And I dont allow anything to deteriorate. My 6 year old van absolutely looks and smells new. Power wheelchairs? Cheap to rebuild and redesign compared to the phone numbers people pay. I even have a discount card for beer! Buy toilet roll by the pallet, as its cheaper etc.

Why doesent the goverment run the country as I run my life? I buy wisely, only when I HAVE the money from the savings I made by doing the same earlier. It absolutely works.

Is it easy enough to open trade accounts? Or do you need to be self employed?

Well you need maybe a few letterheadings, sometimes trade trade references. But I used to run several busineses so that parts easy.

scoped wrote:Is it easy enough to open trade accounts? Or do you need to be self employed?

It isn't hard to do - though it takes a bit of creativity to start with... You sort of need to be self employed, but that isn't a real big problem, you can be "self-employed" as a second job for a couple hours a week, or less...

The easiest / cheapest way, but most limited is to come up with a business name and just use it in correspondence - i.e. if you go to a website form and they ask for a business name...

It costs more, but for relatively short money, you can register a business name with the gov't (process varies depending on where you live) and get any needed tax ID numbers and the like. Once you have those, then you are quite able to open accounts at any business, as you are (on paper) almost impossible to tell from a huge corporate entity.... How much of a discount you get and other such details may depend on your volume of purchases, and other stuff, but that is a separate negotiation...

ex-Gooserider

It costs more, but for relatively short money, you can register a business name with the gov't (process varies depending on where you live) and get any needed tax ID numbers and the like.

In Italy, that will probably use a year of your time and thousands of euros for fees and legal costs, and your place of business will have to be inspected by the police, building department and health authorities! (There is a new, very-much simplified procedure for young people just starting a business. I don't know how well it's working.)
Ciao,
Lenny

You own a company with 100,000 ukp of stock.

Every year you sell 20% of your stock [sales of 20,000 ukp] from which you make 10,000 ukp profit.

If you had 200,000 ukp of stock you estimate that you could sell 40,000 ukp of stock and make 20,000 ukp of profit per year!

Nice.

You go to the bank and they say they will will lend you 100,000 ukp if you give them 5% of the loan per year for the next 25 years [125,000 ukp total].

You say great! I can pay the bank 5,000 ukp per year and still make an extra 5,000 ukp myself ie an extra 125,000 ukp over 25 years!

Not as good as 20,000 ukp but 15,000 ukp is surely better than 10,000 ukp!

Nice - it's a win-win situation called 'trade' and all goes well for several years.

Only a nice man like Senator Obama comes along and says to the banks - unless you give home-loans to people who cannot afford to repay them I will use the law to punish you for being 'discriminatory.'

So banks and other financial institutions say yes-siree and all the money that would have been spent buying your stuff is now being spent in the housing market creating a government induced capital misallocation aka 'a bubble.'

And suddenly you are not selling 20,000 ukp of stock per year - you are not even selling 10,000 ukp per year - and you are not the only one.

This creates a market wide contraction of sales aka a recession as the market endeavours to clear the government-induced bubble.

The government which created the problem blames greedy bankers and says it must intervene to prevent a crisis.

But government intervention only creates an even wider misallocation of capital by creating fake money aka inflating the fiat currency.

This creates an even deeper market-wide contraction of sales aka a depression and this is when things get really interesting politically.

Here endeth economics 101.

For more details see centre column free video lecture entitled-

The Financial Crisis: What Happened and Why

http://www.aynrand.org/site/PageServer?pagename=arc_financial_crisis

LC

But if you built slowly, on money you made from profit, with NO interest to pay then you make more money. And then you are not at risk when rates rise, sales fall, etc. Anyway, I have no objection to companies doing that. Their choice. But I dont want the government doing it with my money.

Burgerman wrote:But if you built slowly, on money you made from profit, with NO interest to pay then you make more money. And then you are not at risk when rates rise, sales fall, etc. Anyway, I have no objection to companies doing that. Their choice. But I dont want the government doing it with my money.

No - you would only make 250,000 ukp profit over 25 years - by borrowing you would make 375,000 ukp profit even after paying interest.

Governments think they can copy businesses and profit the country in the same way - by borrowing.

I think government borrowing is immoral and illegal but they tend not to listen to me.

LC

Dear Lord Chatterley,

Please check your facts before spouting off. The mortgage lending to people who shouldn't have received those loans happened LOOONG before Obama became president and was NOT promoted by the government, but by the BANKS themselves. (FannieMay and FreddieMac are government entities but are required to, and did, operate, badly, as financial institutions not as government agencies. They operated just as badly as the banks, insurance companies and other players in the secondary credit market.) This PRIVATE ENTERPRISE fomented bubble burst BEFORE Obama became president.

Ciao,
Lenny

LROBBINS wrote:Dear Lord Chatterley,

Please check your facts before spouting off. The mortgage lending to people who shouldn't have received those loans happened LOOONG before Obama became president and was NOT promoted by the government, but by the BANKS themselves. (FannieMay and FreddieMac are government entities but are required to, and did, operate, badly, as financial institutions not as government agencies. They operated just as badly as the banks, insurance companies and other players in the secondary credit market.) This PRIVATE ENTERPRISE fomented bubble burst BEFORE Obama became president.

Ciao,
Lenny

Dear Lenny,
Please read what I wrote before spouting off.

I said SENATOR Obama not PRESIDENT Obama...

...http://www.thegatewaypundit.com/2012/09/fact-check-obama-had-more-to-do-with-2008-economic-meltdown-than-bush-ever-did/


...and had you bothered to listen to the links I provided you would know exactly where the blame lies and why.

This is kid's stuff to me.


LC

Lord Chatterley wrote:

LROBBINS wrote:Dear Lord Chatterley,

Please check your facts before spouting off. The mortgage lending to people who shouldn't have received those loans happened LOOONG before Obama became president and was NOT promoted by the government, but by the BANKS themselves. (FannieMay and FreddieMac are government entities but are required to, and did, operate, badly, as financial institutions not as government agencies. They operated just as badly as the banks, insurance companies and other players in the secondary credit market.) This PRIVATE ENTERPRISE fomented bubble burst BEFORE Obama became president.

Ciao,
Lenny

Dear Lenny,
Please read what I wrote before spouting off.

I said SENATOR Obama not PRESIDENT Obama...

...http://www.thegatewaypundit.com/2012/09/fact-check-obama-had-more-to-do-with-2008-economic-meltdown-than-bush-ever-did/


...and had you bothered to listen to the links I provided you would know exactly where the blame lies and why.

This is kid's stuff to me.


LC

Lenny is right and you are wrong. Here is the sumbitch to blame. He lives near me and I hope to out live him so I can PIZZZ on his grave.
http://www.youtube.com/watch?v=7TOpsLH92MY

sacharlie wrote:
Lenny is right and you are wrong. Here is the sumbitch to blame. He lives near me and I hope to out live him so I can PIZZZ on his grave.
http://www.youtube.com/watch?v=7TOpsLH92MY

Thanks Charlie, that is very funny in light of the link I provided.

Here is a shorter version by the current head of the Cato Institute.

http://www.youtube.com/watch?v=K0SfiiTIYfE

Enjoy.

LC