Euro: Chain Reaction

Here are the lyrics to Diana Ross's Chain Reaction;

You gotta plan your future
Is on the run
Shine a light for
The whole world over


Okay, so it is taken completely out of context, but we really do need to plan for the future (and the whole world over).


The majority of the governments in the, so called, western world are having to borrow extreme sums of money to finance their deficits. In addition, some are bankrupting their countries to bail out banking sectors. I have not seen anyone even try and explain what would be the downside of letting these banks go pop. Savers are guaranteed to £85k, in the UK, and any investors or bond holders would necessarily expect to lose money on some of their investments (interest being the reward for risk). Granted, there would be some paralysis of the economy whilst the initial problems were sorted, but government backing of savings would soon kick in and any run should be prevented.


Every person living in Spain, now owes another 15,000 Euro because of the Spanish bank bailout. There has go to be a better way. Iceland got to live again and wipe the slate, more or less, clean. 


In the UK, we are concerned about the level of government debt and amounts being lent to the banks, Ireland, Greece and possibly Spain. However, these amounts are significantly less than the hidden pension liabilities for civil servants and local government employees. 25% of local taxes pay local authority pensions already!


Something somewhere will snap. We are just waiting for the straw.

RICS CPD

Went on an excellent course on Property Management in Nottingham on Monday. RICS do some high quality courses. Sat next to Charlie Hollis from Eaton and Hollis, a mine of  information. Agricultural land is doing very well and banks have an appetite for it.

Commercial Property for Sale in Ashbourne

We have a couple of new instructions in Ashbourne. Great investments, fully let offices at St. Monica's House, Windmill Lane, Ashbourne, Derbyshire. Please see our website for details. www.chartex.co.uk.

Our boards are free and we don't charge a penny unless we are successful.

Commercial property Ilkeston retail. Chartex

If you want a good quality shop in Ilkeston at a decent rate, then please let me know. Hugh@chartex.co.uk

Que Sera Sera Economics

I really think that most people connected with Commercial Property, and resi as well, have lost their mojo. What we are now seeing is Que Sera Sera Economics, whereby people no longer try and determine their future in a proactive way. Instead we are following down a route of 'what will be, will be'.

The problem with this is that it leads to stagnation and the type of activity seen in Japan.

In a perverse way, we actually need the weak (markets, banks, firms etc) all to fail, people to lose their houses and have some proper economic strife. Once this happens, prices will fall and entrepreneurs will go back into the markets and balance will be restored as supply meets demand.

Let's do away with QE (only creating a commodity boom and helping banks make secret profits) and raise interest rates, so we all feel the pain. There will be a crash in prices, which will then bottom out when demand picks up.

Savings are guaranteed to £85,000. We have a welfare state. Only the gamblers and speculators will lose out, and some will win. Having this artificial market does not help anyone. History is on our side; the crashes from the recessions of the early 1980 and mid 1990 helped the economy bounce back well, each time being healthier after than before.

Take your medicine and get better. Please don't lie back and see what happens.