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Category: finance

Recession: It’s official

Recession: It’s official

So, the official word is out, the UK is in recession for the first time since 1991. The technical definition of recession is when the economy shrinks for 2 successive quarters, and that’s just what happened. Last quarter the economy deflated by 0.6% and in the last 3 months, the economy slowed by another 1.5%. Considering that happened over Christmas, which is supposed to be one of the busiest shopping periods of the year. Granted, the rest of the economy…

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Insurance and Risk

Insurance and Risk

It’s interesting to note how many academic subjects end up being used in practical applications without most people being aware of what they’re actually doing. For example, you can look at subjects like mechanical engineering for example; where people who drive cars have no idea what’s going on beneath the bonnet. Another similar subject, is finance, particularly in the world of insurance. Insurance is really all about managing some sort of risk. The formal disciple, called risk management, has evolved…

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The Ten Commandments of Personal Finance

The Ten Commandments of Personal Finance

Here’s an interesting way to present some golden rules to help the general public deal with the current recession. It’s a great post today that lists the 10 Commandments of Personal Finance. Here’s a summary: Though Shalt Take Action Though Shalt Pay Off All Credit Card Debt Thou Shalt Understand the Difference Between Wants and Needs Thou Shalt Live on Less Than You Earn Thou Shalt Pay Yourself First Thou Shalt Set Financial Goals Thou Shalt Educate Yourself and Be…

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Japan doesn’t have it easy either

Japan doesn’t have it easy either

With economic turmoil at our shores it is easy to forget that others around the world are facing similar hardships. I was reading today that Japan’s economy isn’t looking too hot at the moment. The base rate is set to 0.1% (lower that the UK or the US), unemployment has risen to 4% and output has dropped 8% in November with another expected 8% drop in December. The problem is that forcast sales of the goods produced by the Japanese…

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IVA – Get out of jail free?

IVA – Get out of jail free?

I was reading about a financial instrument we have available here in the UK called an IVA (Individual Voluntary Arrangement) which is a formal and legally binding agreement between someone in debt and his creditors. It’s not quite a free ride through because although the terms of may vary, creditors will expect that their prospects of recovering money will be at least as good as in bankruptcy. Creditors also don’t lose their right to bankrupt you if you don’t fulfil…

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GBP almost par with Euro

GBP almost par with Euro

I was looking at how much the Sterling is worth against the Euro today and was shocked to see the exchange rate is pretty close to 1. Here’s how the Pound has dropped recently: It’s amazing to see how far down it has come, I remember it being at around 1.5 Euros to the Pound. Will be interesting to see what happens in the next few months …