Community Views : What’s on the boards today….25th Jan 2011

25th January 2011

This Is Money

"British households were staring a new recession in the face today as the UK economy crashed in the last quarter of 2010, with a shock 0.5% contraction."

This story is also available in FT Alphaville:

"Fresh off the wires – a suggestive double-dip GDP figure for the UK: Blaming the weather. How very British."

casey ryback says: "Well, well stagflation it is. I'd only read about it in textbooks before now but here we are, I wonder what point of the Philips curve we are on…"

The Wall Street Journal have also covered this story;

Hasson Mali writes: "This is devastating news for the UK coalition government. These results are far worse than expected and show an underlying weakness in the economy. The coalition has had a bruising week politically and was criticised by their allies at the CBI yesterday. Now their economic policy will weaken support for the government."

The Telegraph

"The Government intends to refer News Corp's proposed £8bn bid for BSkyB to the Competition Commission, but will hear further undertakings from Rupert Murdoch's news organisation first."

The Independent readers are saying:

ExPatJoe says: "undertakings in lieu" aka "promises we'll make now but which we'll ignore later when it's too late for you to do anything".

The FT Alphaville community views on this are:

"Jeremy Hunt, the Secretary of State for Culture, Olympics, Media and Sport, has decided to bend over backwards to help News Corporation win control of BSkyB."

Hugh says: "Is anyone at all surprised?"

The Telegraph

"Spain has set in motion a partial nationalisation of its crippled savings banks, or cajas, but stopped short of the giant rescue deemed necessary by some experts to contain the country's festering crisis."

jonlivesey comments: "We saw all this with Ireland, didn't we? What began as a E15bn Bank rescue turned into a E25bn one and then a E50bn one. Reassuring markets isn't something you can do inch by inch. You can only change market perception with a big move. It shows you are listening and it shows you have the means to do it. Anything in small doses just looks like an unwilling miser trying to see what's the least he can get away with."

The Telegraph

"The Financial Services Authority (FSA), the beleaguered watchdog faced with being broken up, is to launch a discussion paper on protecting bank customers."

georgesilver says: "FSA is doing what it was set-up to do. Protecting the FSA."

The Guardian are also discussing how the banks are treating their customers:

Watty145 comments: The public would do well to remember that staff in bank branches are expected to sell, and will always place sales targets and commission above customers' interests. The only way to get genuinely impartial advice is to pay an accredited Independent Financial Adviser who works on fees, not commission. They're not cheap, but the attention to detail and quality of advice is undoubtedly worth it."

This story is also available in the Financial Times .

In Citywire:

"The Financial Services Authority (FSA) is consulting on a radical shake-up of its regulatory powers that would allow it to pre-approve and ban products and introduce price caps."

You must be joking comments: "Bloody hell, how long have I been asleep for? I left the office last night at around 8pm (Mondays are always long days) and got back in at 7am this morning (I like to start early). In that time the UK appears to have gone from being a democratic country operating within a capitalist environment, where "the people" decide who governs and "the people" decide what they pay, I believe it is called 'market forces', to a communist state! The unelected deciding who can charge what? Has The Queen been informed as to this shift in the nation's government? I don't recall seeing her make a speach disolving parliament."

The Telegraph

"Government's bank 'hostility harms economy', says Standard Life's David Cumming. One of Britain's most powerful institutional investors has warned that the Government's "constant interference" in the banks is "unhelpful" and is in danger of damaging the lenders, small businesses and the British economy."

Kaitain writes: "We bailed out the financial services sector. And the government represents us. Our house, our rules."

stormer replied: "Darling ,"we" bailed ourselves out."

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