amateur Posted June 3, 2011 Report Share Posted June 3, 2011 My business is booming - reasonably priced products being sold by a growing team of individuals keen to earn reliable money and to be trained in a simple business model. Quote Link to comment Share on other sites More sharing options...
al4x Posted June 3, 2011 Report Share Posted June 3, 2011 He may be able to help you out FM I'm sure there is room on the bottom step of the pyramid Quote Link to comment Share on other sites More sharing options...
Vipa Posted June 3, 2011 Report Share Posted June 3, 2011 My business is booming - reasonably priced products being sold by a growing team of individuals keen to earn reliable money and to be trained in a simple business model. Sounds like a sales pitch if ever I heard one Hands up who's sent him a PM Quote Link to comment Share on other sites More sharing options...
al4x Posted June 3, 2011 Report Share Posted June 3, 2011 best have your running shoes ready, doorstepping betterware and anne summers catalogues is best for the fitter members of society Quote Link to comment Share on other sites More sharing options...
amateur Posted June 3, 2011 Report Share Posted June 3, 2011 best have your running shoes ready, doorstepping betterware and anne summers catalogues is best for the fitter members of society I wouldn't know about either of those companies, I'm afraid, so I bow to your superior (presumably personal) knowledge Quote Link to comment Share on other sites More sharing options...
AVB Posted June 3, 2011 Report Share Posted June 3, 2011 No, what caused the problem was lenders handing money to people with no income whatsoever (yes... really... the US called them NINJA mortgages, No Income No Job Applicants.) lending money to people with clear track records of not paying it back as well as lending on 'self certified' mortgages where the prospective borrower didn't need to provide any proof of earnings! you want a house that costs £250k, you need a £250k mortgage, you work out what you needed to 'show' on the application form as income to achieve this and no questions were asked!!!! this was quite common practice (not with my client base I might add, there was no need for it, my clients tended to come from pit villages so house prices were within the reach of 'normal' incomes, there was never any question of inflating them but it was rife elsewhere. Anyhoo... as you can imagine, it is these loans that start to default as the borrowers simply do not have the resources to sustain the monthly payments. All this was done with no risk to the lender as all of those mortgages were securitized (bundled up into mortgage backed securities and sold on to other financial institutions for huge profit) and as such, the risk went with them... This practice went on for years. As long as the big financial intitutions were making a profit. (as the property bubble grew... but it wasn't real! If you get chance to watch Wall Street 2, not a great film really but, in it, Gordon Gekko gives a little heart to heart advice and talkes about the Dutch Tulip Bulb Bubble from a few hundred years ago... It makes what has recently happened obvious and understandable) Because it wasn't real growth though, it was only a matter of time before the whole thing collapsed... Leheman Bros were the first casualty, they basically ran out of cash and couldn't pay the wage bill and it was at this point other financial institutions began questioning what they had bought for billions and slowly realised that, in fact, they were sat on nothing more than a big pile of dog **** mortgage backed securities, a large proportion of which would very soon default and leave them in the poo themselves... no one at this point would buy them and therefore thier market values tumbled sending rather a few of these giants to the wall. selling high loan to value loans causes negative equity problems as was seen (particularly in the midlands) during the last recession when the last property bubble burst. We haven't really seen any negative equity issues this time. As long as the risk is managed and the lending is sound, LTV is largely irrelevant. 95% mortgages have been around since the early 80s and before. They never caused any issues and the banks took out insurance policies, MIGs (Mortgage Indemnity Guarantees) to ensure they weren't left in the lurch should a high LTV loan default. In the recent crash, even though the media would have you believe that Northern Rock were the root of all evil and that it was thier 125% lending policy that caused the crash, in reality, it was just poor risk management, nothing more and in NRs case, the run on the bank caused solely by the media was more to blame with that particular banks demise than anything else... It is not high LTV lending that causes defaults, it is the inability or unwillingness of the borrower to repay the debt. Bill Clinton was the cause of the NINJA problem in US with him forcing Banks to lend to people who traditionally hadn't been able to get a mortgage. Low income, no income, ethnic minorities etc. It was PC gone mad. Agree with you on NR. NR weren't in good shape but Robert Peston was the cause of the crash due to his 'scoop'. The most reckless piece of reporting for a very long while. The whole financial world depends on Banks trusting one another when it comes to paying and receiving. Trillions of pounds are transferred between Banks every day (RBS transfer about £1.5 Trillion alone). If they get a sniff that one is in difficulty then they wont pay and then the Bank receiving the money won't pay. The whole system grinds to a halt. Bear Sterns was the first then Lehmans and it all went downhill from there. Quote Link to comment Share on other sites More sharing options...
ME Posted June 3, 2011 Report Share Posted June 3, 2011 My business (Freight) is having our best year yet so far. (since 2007) I have kept costs low throughout the last four years of business. I have no high fixed overheads, minimal staff, tight control on our credit outlay / finances, very positive cash flow and have kept money back for a rainy day. I have also continued my marketing (websites) throughout the recession. We now have in excess of 300 stand alone websites and I have a full time member of staff that spends all day just quoting leads generated from the websites. My father was an accountant until he retired. He told me that he saw many businesses go to the wayside during the last recession. He said most of them went down because they didn't have control of their finances, didn't up their marketing efforts and maintained that "something will come along" and it never did. Quote Link to comment Share on other sites More sharing options...
LikeitLARGE Posted June 3, 2011 Report Share Posted June 3, 2011 whats the diffrent in your areas in labour costs for your average english tradesman compared to your non english tradesman. Had a friend get quote for a complete painting and refit of the bathroom tilling etc the cheapest local was 12K. He had a group a gang of polish guys from london do it for 5K al in less than 4 days working day and night and I must admit the quality and speed of work was above most english tradesmen I have seen. So you cant knock customers taking that route despite the problems it causes to our own native tradesmen . Its the goverments fault for allowing mass influx of foreign labour be it in the building trade or NHS . Adey Quote Link to comment Share on other sites More sharing options...
Vipa Posted June 3, 2011 Report Share Posted June 3, 2011 Its the goverments fault for allowing mass influx of foreign labour be it in the building trade or NHS . Adey And most experts agree that if you turned off the influx of cheap, willing, hard working labour from europe as some would like, the UK would be well and truly goosed beyond repair! Quote Link to comment Share on other sites More sharing options...
LikeitLARGE Posted June 3, 2011 Report Share Posted June 3, 2011 And most experts agree that if you turned off the influx of cheap, willing, hard working labour from europe as some would like, the UK would be well and truly goosed beyond repair! So if thats the case then does that mean that builders what there higher paid jobs ringfenced from cheap foreign labour but foreigners can do all the bum wiping in the NHS as A is not fun and B the pay too poor and we might have to work after 4PM. Adey Quote Link to comment Share on other sites More sharing options...
Blackpowder Posted June 3, 2011 Report Share Posted June 3, 2011 Well things seem tight around here also, as I am hitting the big 70 this year and have declined work such as newbuilds and major alterations my expectation of getting three days a week in general plumbing repairs is falling far short of what I had anticipated. Nothing for it but to spend more time on the river and at the beach casting a hopeful line. Blackpowder Quote Link to comment Share on other sites More sharing options...
Fisherman Mike Posted June 3, 2011 Author Report Share Posted June 3, 2011 He may be able to help you out FM I'm sure there is room on the bottom step of the pyramid Ann Summers party planner...no thanks.....then again... Quote Link to comment Share on other sites More sharing options...
Vipa Posted June 3, 2011 Report Share Posted June 3, 2011 So if thats the case then does that mean that builders what there higher paid jobs ringfenced from cheap foreign labour but foreigners can do all the bum wiping in the NHS as A is not fun and B the pay too poor and we might have to work after 4PM. Adey Adey... sorry mate I really didn't understand any of that Quote Link to comment Share on other sites More sharing options...
shaun4860 Posted June 3, 2011 Report Share Posted June 3, 2011 My business (Freight) is having our best year yet so far. (since 2007) I have kept costs low throughout the last four years of business. I have no high fixed overheads, minimal staff, tight control on our credit outlay / finances, very positive cash flow and have kept money back for a Porche. I have also continued my marketing (websites) throughout the recession. We now have in excess of 300 stand alone websites and I have a full time member of staff that spends all day just quoting leads generated from the websites. My father was an accountant until he retired. He told me that he saw many businesses go to the wayside during the last recession. He said most of them went down because they didn't have control of their finances, didn't up their marketing efforts and maintained that "something will come along" and it never did. shaun Quote Link to comment Share on other sites More sharing options...
LikeitLARGE Posted June 3, 2011 Report Share Posted June 3, 2011 Adey... sorry mate I really didn't understand any of that Vipa what I am saying is that some think that EG polish builders are undercutting the market value of english tradesmen But on the otherhand they dont mind them doing all the poorly paid jobs in the UK like NHS nurse work ETC. The foreign aspect of the UK has a totally diffrent outlook on life they prepared to work longer harder for less pay due to fact they dont mind sharing houses with each other. Us english have become obbessed with owning our own homes where they share and care for there parents etc. We english are always striving to breakaway from our familys. Adey Quote Link to comment Share on other sites More sharing options...
Vipa Posted June 3, 2011 Report Share Posted June 3, 2011 Vipa what I am saying is that some think that EG polish builders are undercutting the market value of english tradesmen But on the otherhand they dont mind them doing all the poorly paid jobs in the UK like NHS nurse work ETC. The foreign aspect of the UK has a totally diffrent outlook on life they prepared to work longer harder for less pay due to fact they dont mind sharing houses with each other. Us english have become obbessed with owning our own homes where they share and care for there parents etc. We english are always striving to breakaway from our familys. Adey I'm with you now.. There was a program on tv a couple of years ago where they got some long term unemployed blokes and got them work for a couple of weeks (they were bitching about not being able to find work because immigrants had taken all the jobs... it was embarrasing watching them fail miserably in the face of these guys who were willing to work MUCH harder, for longer hours, without bitching etc.. As an employer, I know who I would have prefered working for me.... sad but true! Quote Link to comment Share on other sites More sharing options...
poontang Posted June 3, 2011 Report Share Posted June 3, 2011 I work in the construction industry (joinery), and got a pay rise yesterday Things don't look too bad at the moment. Quote Link to comment Share on other sites More sharing options...
al4x Posted June 3, 2011 Report Share Posted June 3, 2011 same here I prefer people who want to work and realize if they work so their wage packet gets bigger. A lot of the countries problems are simply people living beyond their means, my other half deals with people being repossessed all the time at the moment. A lot bought their house under the right to buy for a tiny amount then just kept re mortgaging till they couldn't afford it and then they expect another free house. The sad bit is most of the money went on booze tellys kitchens and cars seems pretty inconsequential compared to a roof over their heads but you'd be amazed how many people in mortgage arrears still have sky and make no effort to cut their outgoings. Quote Link to comment Share on other sites More sharing options...
poontang Posted June 3, 2011 Report Share Posted June 3, 2011 I'm with you now.. There was a program on tv a couple of years ago where they got some long term unemployed blokes and got them work for a couple of weeks (they were bitching about not being able to find work because immigrants had taken all the jobs... it was embarrasing watching them fail miserably in the face of these guys who were willing to work MUCH harder, for longer hours, without bitching etc.. As an employer, I know who I would have prefered working for me.... sad but true! Yeah, I saw that. It was really quite embarassing Quote Link to comment Share on other sites More sharing options...
silpig5 Posted June 3, 2011 Report Share Posted June 3, 2011 i work with the construction side , plant repair , i must say that in the norfolk/suffolk area things are starting to pick up and gett going again. my field is the hydraulic repair side , so im always busy on call out as nobody wants to pay main dealer prices for a get there eventually service . happy days for me at the mo , picked up a couple of large companys on a supply bassis , so as i said , happy days . adi Quote Link to comment Share on other sites More sharing options...
ack-ack Posted June 3, 2011 Report Share Posted June 3, 2011 I seriously wonder whether I will ever go back to construction. The entry requirements for over seas construction proffessionals was tightened up the other year so that they could only get a highly skilled visa if they were masters qualified or above. The general down turn in Construction (and building) has created a surplus of engineers competing for what are mainly staff positions (not free lance). The packages on offer are mainly poor and if you were one of the ones that bought during the boom and now have a large mortgage not a viable option. Its made life even more difficult for time served engineers such as myself. Most of the firms that would have hired me and paid a wage that reflected 4 hrs of travelling a day now have their hands tied by upper management who are trying to find enough work for their own staff. Its come to the point where its difficult even getting a staff position. I set up on my own last year and have been hanging on by the skin of my teeth. Its amazing how little you can live on and yes it is nice to fish and shoot on a regular basis but by christ I'd rather be getting ahead in life. Hopefully Crossrail we soon be struggling through lack of staff and they will put their hands in their pockets and start crewing up the project properly. Quote Link to comment Share on other sites More sharing options...
chrispti Posted June 3, 2011 Report Share Posted June 3, 2011 I work for a crane and plant hire company, we have been pretty busy so far this year, only in the last few weeks we have had plant sat in the yard. Our customers, small and large firms, are still busy.....enough Quote Link to comment Share on other sites More sharing options...
Vince Green Posted June 3, 2011 Report Share Posted June 3, 2011 (edited) There's loads of extensions and loft conversions going on round here because people see it as a good alternative to moving. Average semi = £450,000 loft conversion £36,000 it doesn't take much working out. But, and there is always a but, most of the workers are Eastern European. Edited June 3, 2011 by Vince Green Quote Link to comment Share on other sites More sharing options...
Diceman Posted June 3, 2011 Report Share Posted June 3, 2011 95% mortgages have been around since the early 80s and before. They never caused any issues and the banks took out insurance policies, MIGs (Mortgage Indemnity Guarantees) to ensure they weren't left in the lurch should a high LTV loan default. I seem to recall it was me that paid the premium for the MIG, not the bank...never could work out why I should have to pay for an insurance policy to protect someone else's risk! Quote Link to comment Share on other sites More sharing options...
Vipa Posted June 3, 2011 Report Share Posted June 3, 2011 I seem to recall it was me that paid the premium for the MIG, not the bank...never could work out why I should have to pay for an insurance policy to protect someone else's risk! Because that was the deal... you want us to lend you more than 75%, you pay for the insurance to cover the additional risk we're taking. If it hadn't been a seperate charge it would have ended up bundled into increased mortgage rates. Whichever way, you would have been able to add it to your mortgage (with a few exceptions) Always seemed fair to me. Quote Link to comment Share on other sites More sharing options...
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