SellMyCarKent

Whilst it has seemed recently that the results of the government’s scrappage scheme has been all positive for everyone involved, it has recently come to light that partly as a result of the scheme as well as recession-hit companies reluctant to replace fleet cars has led to a shortage of and therefore a huge jump in the price of used cars.  Prices have apparently soared a massive 30% with, used-car magazine Parker’s reporting in April of this year that as a result of manufacturers cutting prices to attract customers in the recession, new vehicles were cheaper than second-hand ones.  However, this price rise is not expected to last as the government’s scheme is predicted by some to run out of money in the Autumn.

Figures released by the Society of Motor Manufacturers & Traders show that August was a bumper month for new car sales (well, relatively speaking anyway) as they recorded a 6% jump, apparently boosted by the government’s scrappage scheme.  The first month to see an improvement was July where an extra 2.4% was recorded which was the first increase in fifteen months.  Now that things look to be (very slowly) on the up, all eyes will be on September to see whether the growth continues.  However, even with the pick-up, last month’s sales were still over 10,500 behind August 2007 and a substantial 15% under the 78,800 market average between 1999 and 2008.

Whilst the Tom Tom for iphone application has been available for quite some time, it has only recently been possible as a solo driver to use it if you’ve managed to wedge the phone somewhere steady in the car or tape it to a surface. The new car kit will safely grip your iPhone 3GS and will also work with 3rd party GPS systems, like the CoPilot iPhone app.  The kit is expected to be available in October and will be around the hundred pound mark.  You can buy the TomTom application from the Itunes application store and keep an eye on the website for the arrival of the car kit (www.iphone.tomtom.com).

Over in the US carmaker General Motors is dealing with the effects of the credit crunch on its struggling company by appearing to make some serious changes and getting rid of the ‘GM’ logo on all its vehicles – a small silver square with ‘GM’ inscribed inside it.  The logo normally appears on the lower edge of the front fenders and was first introduced in 2005 on the Pontiac G6.  Although the company claims that the removal of the logo is a result of a desire to focus on the company’s four key brands, many think that this has more to do with the desire to get away from the association with ‘GM’ as a struggling company, bailed out by the taxpayer and just out of bankruptcy.

For decades now massive corporations have been establishing subsidiaries in the Caymen Islands where the corporation tax rate is 0%. This has two effects, firstly more profit, hence higher share price and more bonuses for board members. Secondly it means that tax revenues are substantially lower than they should be. This gap has been made up by us mugs.

Obama has decided enough is enough and is closing these loopholes to raise an extra estimated $190 billion over the coming decade, horse bolted stable comes to mind.

So historically with some of these companies reducing their tax bill by 80+ % means they have been declaring effectively misleading profits from a shareholder point of view. Look for down valuations of any business with  substantial tax avoidance measures in place. This scum have been falsely representing the value of their companies for a long time. How much of the ‘productivity gains’ of the last few decades are really just accounting slight of hand

If your pre tax profit is $100m and you are declaring $95m after tax when it should be closer to $65 m this is an overstatement of earnings of nearly 50%.As today’s share prices is an extrapolation of future profits I would expect  falls greater than 50% in share price for those most badly effected.

To keep the same profits, either prices will go up (inflation) or costs reduced (unemployment). Still at least Obama is trying to tackle this vermin.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aWoQkk2WY1oc&refer=home

With all the talk of ‘Green Shoots’ you would be expecting something pretty good from the world second largest sports goods maker. Well you would be wrong. How about a 97% fall in profits? Down from 169m Euros to 5m Euros. I mean 5m euros? Is it even worth running this business for a measly 5m? Well no. Answer cut 100m euros off the cost base (unemployment up).  Oh yes they increased debt by 810m euros, total debt now stands at 2.88 bn euros or a debt to earnings ratio of approx 580.

It’s a bit like earning £10,000 a year and being told you can have a mortgage for £5,800,000. Nice.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a.zxd7XCbmDU&refer=home

http://www.bloomberg.com/apps/news?pid=20601039&sid=a68fKnmA8S6k&refer=home

For some reason  there has not been a civil war over the bank bailouts . I cannot understand why, it has been made clear that we have been saddled with a generation of debt and higher taxes. It is generally understood that what the bankers have done is fraudulent and criminal. So why, no riots?

You just don’t care do you? Well here is a bit more news…. Get ready for another $½ trillion of money going from us mugs to bankers. Still don’t want a revolution? You really are that gullible?

http://globaleconomicanalysis.blogspot.com/2009/04/more-ugly-details-emerge-on-geithners.html

It’s a complicated isssue and one that is easily disgused because of this. However this fantastic blog makes it clearer than anyhting else I have read. The bailout money is not going to help make more loans ofr small buisness and consumers but to pay out counterparty risk (bets) that the banks took on and lost.

It’s like having a winner on a horse only to find the bookmaker with whom you have made the bet has disapeared (gone out of business). Feeling sorry for you the Government pays you out instead…yes wake up you must be dreaming…..but we are not dreaming, this we are told is reality (apparently).

What gets me is that the type of people whom have access to make these types of bet with banks are not your average Joe. Far from it we are talking in the main about the rich elite. What we are doing is paying off the rich elite on bets that didn’t come in, we must be mugs.

http://blogs.reuters.com/great-debate/2009/02/03/play-by-the-rules-close-failing-banks/

Oh did I forget to mention it’s in Detroit. There’s a pently out there for $1 too so always shop around for a bargin. You’d be doing the UK economy a favour as our banks own these now.

http://www.realestatebook.com/homes/Detroit-MI-USA/0-50000-price/3000-no-limit-sqft

http://www.prisonplanet.com/foreclosure-fallout-houses-go-for-a-1.html
http://www.realtor.com/realestateandhomes-search/Detroit_MI/price-na-1000/type-single-family-home/type-condo-townhome-row-home-co-op/type-multi-family-home

In a vain attempt to repay the $150bn AIG owes the US taxpayer, parts of the business are up for sale. Two problems, not many potential buyers have got any money; the ones that do are unlikely to want to buy up complex insurance business in the middle of a credit crunch.

Not surpising sales are as slow as an estate agent in Detriot.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aBvuO8cVLtwU&refer=home