Growing Evidence That The Upturn Is Upon Us

[George Zipper]

good discussion

There is much good discussion going on here and I am enjoying the debate.

I agree with all the observations being made but have a differing view on the conclusions.

Pull it back up to a higher level - the private sector is stuffed, unless it is cash rich and eyeing up its weaker competitors to take advantage of what is for them, and will continue to become, a great merger/acquisition opportunity.

Therefore, to revert to my previous observation it is therefore only a revised fiscal strategy, be it through measures to encourage consumer spending through confidence or public spending, that the economy can then be re-ignited. (NOTE I am not advocating which measure(s))

However one only has to look back to 2Q last year when the inter-bank lending rate went vertical in comparison to the BOE rate that we should have forseen the financial catastrophe awaiting to happen. Banks had little or no dosh to meet their own creditors never mind lend any surpluses to one another; Northern Rock wasn't even the tip of the iceberg. Currently we the consumer need to ignore the current BOE base rate as an indicator. You need only look at actual borrowing rates being offered, be it mortgages, credit cards or personal loans, to realise how little the institutions want your business or the price you will pay for accepting their current conditions.

Never before has there been a need time for the men in long trousers to stand up and be counted and earn their salary. Reducing VAT by 2.5% was frankly an insult.

Not wishing to drag this into a political argument I do wander how many times G Brown has woken up to his famous last words "we have eradicated boom and bust" and I lay all the blame on his shoulders. After all he was the man in number 11, with the hand on the tiller, before moving up the street.

So back to flying. Ultimately aviation travel, for Joe public, is a discretionary spend activity. When we have money and feel good about our future security, we spend a little more in the current period, be it foreign holidays or weekend breaks. Restoring the confidence of the general population and regulating our financial sector is what is needed. Sounds too easy to be true, but that’s what is basically needed and NOT flogging off our golden foreign currency reserves at bargain basement prices as GB has previously done. Now our greatest challenge is the pitiful value of sterling which makes the 2 weeks in the med look poor value. Butlins anyone?

I agree when with TA assertion that Cameron should vote NL - does he really want the job

But someone needs to step up to the challenge and the sooner we see change the better.

Keep you chin up wannabees (and assuring you the rose tints are not on)