US Bailout goes ahead but what about the UK?
The $700 million bailout of the US banking sector has now gone through the US senate and there has been a lot of speculation about what will happen next. Noone knows for certain what the effects of this will be but the UK still seems set for difficult times.
It seems like the factoring and invoice discounting markets will have a growing role in the UK bridging the credit gap for businesses that would have previously been able to access more traditional methods of business finance such as overdraft or bank loans.
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October 9th, 2008 at 10:04 pm
From an Oz perspective it is interesting. The economy down here is clearly suffering as a result of the US/UK problems although the Government are very bullish about just how many “light years” away they are from the collapse seen elsewhere.
That said the demse of the AUS$ against the US$ over recent days to circa 67c has caused rumblings.
Two days ago the central bank slashed 100 basis points off of base rate and a further 50 are expected literally within a week or two. The Banks have immediately passed on 0.8% of the cut to consumers under pressure from the government with a further cut expected.
This has refreshed consumer confidence here without a doubt although teh housing market remains in a downward spiral which to all accounts is a good thing here due to the unbelievable increases seen in the NSW over the past decade.
Factors are bullish about business or should i say independent factors are bullsihh. Bank owned seem to be following the Uk, slowing up deals and tightening credit stance and in some cases literally closing up shop.
Independents on the other hand are booming with enquiries. Unlike the UK they see a massive opportunity and intend to take it rather than try to be what they are not, a Bank!