- cross-posted to:
- globalnews
- cross-posted to:
- globalnews
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Yep. My holidays for this year were a weekend in Manchester and a week in and around London.
I normally don’t go on any holidays at all, and we weren’t exactly living it up at the premier inn, my bank account is looking shit because I went a few hundred miles away for a week and a half. And I should be greatful for that, I know that there are so many people that have no holidays at all and still have to live paycheck to paycheck.
I joined the work force just before 2009 and we’re back in the economic shit again already. I thought we were supposed to have some times of prosperity in between the recessions!
I feel like I’ve done everything right. I went to college, did an apprenticeship, have never been in trouble with the law and have never been out of work since the age of 16 (I’m 36 now). I feel like my spending power reflects the effort I’ve shown poorly.
Prior to COVID-19, there were many articles about zombie companies. (Zombie companies are ones that would have failed if not for cheap credit.) Not a surprise more companies are failing.
Are you stating that we have more zombie companies since Brexit, or that Brexit created them?
There will always be companies that earn less than others, but what is undeniable is that Brexit has made trading harder. This has pushed more into liquidation than we would have seen without it.
It’s been something that I have seen mentioned occasionally throughout the last decade, because of the low interest rates it was possible for barley profitable companies to survive. Now the rates are going up it’s less so.
You always have to remember the bias of the source when reading news articles. This is the BBC is is very much the messenger government BS.
The higher interest rates will be one of the factors, and it is mentioned in the article:
"Businesses that had loaded up on debt at rock-bottom rates, and were only able to cling on during the pandemic thanks to government support, must now deal with a financial reality check as higher interest rates hit working capital for the foreseeable future.
It is an easy one for government to deflect as this is driven by the BoE.
However, all the examples the article mentions is not because of struggling with loans. Businesses state there is either a drop off in sales due to people having less money to spend. One postulates that is due to mortgage costs, with out any data to confirm that. The rest state cost of materials, mostly building materials. We import the majority of our building materials from the EU. And that would push those causes directly at Brexit, since it is our biggest reason for increased import costs.
There is no data to confirm anything the the article states when it is pushing interest rates as being the main cause.
This is the best summary I could come up with:
Insolvencies rose 10% from a year ago in the three months to the end of September, the latest official figures for England and Wales show.
Julie Palmer, from Begbies Traynor, said this was down to a combination of higher inflation and borrowing costs twinned with weaker consumer confidence and demand.
He said while his firm had enough work to survive, higher borrowing and material costs meant a lot of people could not justify investing in home improvements.
Mr Lee also said the volatile price of materials added more pressure and pointed to some timber panels they were installing in a home extension.
“There are no solutions out there at the moment, and at the same time it’s a pretty buoyant employment market so a lot of business owners are saying ‘I just can’t do this anymore, and I might as well just work for somebody else’, and that’s the choice they’re taking.”
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The original article contains 887 words, the summary contains 188 words. Saved 79%. I’m a bot and I’m open source!
