On Wednesday 9 Decemeber 2009, Alistair Darling delivers his Pre Budget report.
But what exactly is it?
It's a half time report on how the government is doing meeting its financial commitments.
It should be interesting in a time of decreasing tax revenue, government debt, unemployment and an election within 6 months.
To be continued....!
Last week there were sensational stories about financial collapse in Dubai.
What actually happened?
Dubai has set it elf up as a financial centre and simply there was overexpansion, over investment, unoccupied office towers and empty shopping malls. There was nothing to sustain development. Unlike its neighbour Abu Dhabi, it has no oil wealth or natural resources.
A source there noted that one of the reasons for the flow of money into Dubai was that banks did not ask too many questions about the origin of the money....
It depends on how a lender sees you as a financial risk. It's much more difficult than the pre-credit crunch days of 2 years ago.
The outcome will depend on
1 Your salary
2 Your outgoings
3 Existing credit commitments
4 Past credit history
5 Size of deposit you can put up
#4 is particularly important. People always look surprised when I reveal to them a lender will be reluctant to give them them £150 000 because they struggled in the past to pay a relatively small credit card or mobile phone bill!
Big salary, low level of outgoings, decent sized deposit.....no problem
Low salary, big outgoings, big debts, no deposit...no comment.
It's worth remembering, the credit crunch began when US banks lent to people who could not afford to make repayments....
Posted by Sean Wilson, APFS, Independent Financial Advisers (IFA), Swindon, Wiltshire.
What is dead cat bounce? A term much used in financial circles these days.
