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How many councils will go bust?


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With 50% cuts from Central government.

Spiralling costs of paying private landlords due to being banned from building council housing.

Reckless  speculation in commercial Property.

How many more will go bust, I know my council is in Even more debt than Croydon.. For the exact same reasons..

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It'll be like the banks -- 'one or two'.

Once they start getting into trouble gov will bail them out.

Like for the banks, this is actually a fair thing to do, because to do otherwise would destroy the country.

But what is necessary is to punish those who made bad decisions, and to ensure that they can't do the stupid things in the future.  The problem is with those running councilsl the folk who live in the areas that had pretty-much no control over the council shouldn't have to suffer (too much).

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1 hour ago, dgul said:

It'll be like the banks -- 'one or two'.

Once they start getting into trouble gov will bail them out.

Like for the banks, this is actually a fair thing to do, because to do otherwise would destroy the country.

But what is necessary is to punish those who made bad decisions, and to ensure that they can't do the stupid things in the future.  The problem is with those running councilsl the folk who live in the areas that had pretty-much no control over the council shouldn't have to suffer (too much).

Convoy.

Like banks, they all put off going bust for as long as possible. Saving face, saving salary and bonuses. Whatever.

Then,. when the first go, they all rush, expecting the last one one to get the worse deal.

 

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Theres no bailing out of councils needed.

They are meant to pay for stuff as it occurs - theyre should be limited liabilities carried over.

If a LA goes bust then its resolution is easy - get the current people to apply for their jobs- at lower pay.

Then write down the pension pay outs.

A lot of LA services are contracted out. The stuff that people would notice, such as bins or OAP visits tend to be done external contractors.

Ditto schools, with acdemies.

 

 

 

 

 

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On 14/11/2020 at 12:53, spygirl said:

Convoy.

Like banks, they all put off going bust for as long as possible. Saving face, saving salary and bonuses. Whatever.

Then,. when the first go, they all rush, expecting the last one one to get the worse deal.

 

I think this time they will want banks to go bust, that's where the reset of the monetary system begins.

Central banks control the money centrally or the IMF step in.

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1 minute ago, macca said:

I think this time they will want banks to go bust, that's where the reset of the monetary system begins.

Central banks control the money centrally or the IMF step in.

Money  system is not banks.

IMF just provides short term liquidity.

Any banking regulator wants small to medium banks with ine that goes bust every niw and then.

UK, not having a headline bank going bust was lured into a false sense of security.

Few people are aware that Abbey National was insolvent.

https://www.theguardian.com/money/2004/nov/13/business.abbey

Theyd manage to a UK building  society into one of the biggest owners of commercial leases. Then found out they need more capital fir thatbusiness and did not have a clue what they were doing.

Lucmzn Arnold n Steve Hester were parachuted to unravel the fuckup on the book, then sell the remains to Sandanter.

 

 

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On 15/11/2020 at 21:41, macca said:

I think this time they will want banks to go bust, that's where the reset of the monetary system begins.

Central banks control the money centrally or the IMF step in.

IMO' Sunak's been given the nod by the Bilderbergers/Davos crowd that economic reset will happen next year, which is why furlough's been extended. They know they can run the economy into the ground and spend like a sailor on shore leave because it will all be written off.

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On 15/11/2020 at 21:56, spygirl said:

Money  system is not banks.

IMF just provides short term liquidity.

Any banking regulator wants small to medium banks with ine that goes bust every niw and then.

UK, not having a headline bank going bust was lured into a false sense of security.

Few people are aware that Abbey National was insolvent.

https://www.theguardian.com/money/2004/nov/13/business.abbey

Theyd manage to a UK building  society into one of the biggest owners of commercial leases. Then found out they need more capital fir thatbusiness and did not have a clue what they were doing.

Lucmzn Arnold n Steve Hester were parachuted to unravel the fuckup on the book, then sell the remains to Sandanter.

 

 

Spygirl.

Can you start a thread on the other place talking about HTB ending begin of April for 2nd time buyers. Also some SE regions will have 410k cap. This is the single biggest thing that will destroy house prices but nobody talking about it. 60pc at least of the big 450-600 new build houses are sold to 2nd steppers with HTB. Without this deadline being thrown out its game over. 20pc down overnight.

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4 hours ago, spunko said:

But it is a sure fire investment. People will always need to rent offices. Working from home will never catch on.......oh wait

image.png.bc9a678f3b4ee35ce6b6eaddd0b947cf.png

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4 hours ago, spunko said:

 

Maybe they're the smart boys though; they are making a 1% net return - £10m - after taking account of interest payable etc.  Maybe 3% gross.

If interest rates stay low and inflation rises that £1bn of debt will erode away and that £10m increase.

It's a hell of a gamble but we are into fantasy economics now where the normal rules do not apply if you can keep renewing that debt as a council can because of the government effectively or actually underwriting it.

It's not a strategy an individual has the option to pursue as the bank can just call in the debt.

 

Spelthorne, by its own admission, has become “heavily reliant on investment income” to fund services. Its property portfolio is predicted to bring in £9.9m this year, more than council tax and far in excess of business rates and government grants. However, that sum represents a return on investment of less than 1%, after taking into account interest, repayment costs and money set aside to maintain the buildings.

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50 minutes ago, Micky Roberts said:

But it is a sure fire investment. People will always need to rent offices. Working from home will never catch on.......oh wait

image.png.bc9a678f3b4ee35ce6b6eaddd0b947cf.png

You just know these public sector leeches will cry that they didn't predict COVID-19 and aren't responsible. Completely ignoring the fact that working from home has been on the rise for the last 5 years or so anyway...

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more of thsi and they're going to be some massive holes in council balance sheets.It's not so much the unpaid business rates as theyre collected on behalf of central govt but more that for any that are sat on CRE they're recently bought,the'yre shooting themselves in the foot by shutting High Sts.

The police are endearing themselves to noone but obviously visiting middle aged ladies running card shops and threatening them with closure is preferable to dealing with BLM rioters.

 

Edited by sancho panza
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On 23/11/2020 at 22:31, sancho panza said:

more of thsi and they're going to be some massive holes in council balance sheets.It's not so much the unpaid business rates as theyre collected on behalf of central govt but more that for any that are sat on CRE they're recently bought,the'yre shooting themselves in the foot by shutting High Sts.

The police are endearing themselves to noone but obviously visiting middle aged ladies running card shops and threatening them with closure is preferable to dealing with BLM rioters.

 

Once they have wiped out all the small businesses, the large corporations that the Tories represent can come in and take over.. 

That seems to be the master plan.. Probably the same with Rentals, its going to be mainly large corporations

This was Barclays plan in the 2008 crash, they collapsed and hoovered up assets cheap to profit..

Edited by macca
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