The American dream – but what can he deliver?

Well yes the election of a black working class american to president epitomises the American dream of “everyone can make it” and I am glad that he did! The Bush era has been a disaster for the US in International terms and another hard right ( and oh yes he is) ageing republican with a gun toting evangelical VP within reach of the nuclear button when he crocks it was frightening. So we have an eloquent, charismatic, forward looking US president – but once in power what changes can he realistically make?

The Credit Crunch! Sick of hearing it already.

We have only just “officially” gone into recession an we have a name for it – the credit crunch – which is already being used by 8 year olds! Apart from the ubiquitous use of the term contributing to weakening an already fragile economy it is also a state of mind (for a lot of people) rather than a reality! Unless you are moving house, borrowing a large amount of money or an estate agent then how much has it actually affected you? A few stocks dropped in value - but unless you are about to retire then you are probably going to ride that out too!

So come on - lets make use of the term the equivalent of a swear box fine: so if you keep going on about it then you really will feel the pinch!

Banking crisis – near meltdown, now what next?

If the commentators are to be believed (and many are both well informed and upstanding individuals) then the banking system came close to collapse in recent weeks. Trust and confidence (watchwords in the system) had been eroded to the point that the banks would not lend to each other.

Why? Well they all knew that they had all overextended themselves and so the risks of lending (to each other) were too great. Freedom of regulation, coupled with greed, had created an environment where the banks forgot their own rules of liquidity. The Government (well actually the taxpayer) has bailed them out (it had too) and secured the system with a series of guarantees and I hope the bank management teams are called to account for their profligacy. Somehow I think few will be – but the hope is lessons have been learnt and the Govt will pay more than lip service to future regulation and controls.

What next?

Internet marketing – one of the dark arts?

So you want your company represented on the web and more than that you want to generate incremental revenue from your website – and there are plenty of companies and consultants who will tell you that they can ensure you will get a “really cool website” and high rankings in search engines using their keyword design and seo services. But do they deliver??

Not everyone can rank in the first pages of google and few seem to agree on what the most important factors are in determining where your site sits. Ah, more work required, you have not got enough backlinks/meta tags/ etc etc…..and here is the invoice!  

The increasing numbers of ”internet marketeers” peddling their services (sign up, pay here, learn how to get more traffic) are the beneficiaries of the need for businesses to have an online prescence and it is the builders of the sites and the networks that are reaping the rewards.

The model now is that you pay for the “service” – but the time will come when the balance of power will change and payment will be on “results”. Businesses should start to negotiate internet marketing services based on a realistic return – and stop pouring money into the black hole of internet marketing!

Banking system crisis – who is crying?

Well Lehman Brothers crash, banks are in trouble and the finance industry is crying out for help!  There is little sympathy for the “city”, banks, insurance companies and the high earners who have been getting fat for years in an unregulated, out of control, greedy system. Concerns, yes, that it will affect the housing/job market but few will shed a tear at the pictures of the employees leaving with the “possessions in a box”. Far from it – but let’s hope the toppling towers of Canary Wharf do not land upon the more ordinary working population.

Opportunity knocks – if you have the liquidity

Cash, they say, is king and no more so than now! The housing market is probably the most obvious place to find value now if you have the liquidity to take advantage of the conditions. There are few buyers, mortgage availability is at the worst for decades and sellers are faced with tough decisions; reduce prices or stay? Many are staying, further slowing the market. A cash buyer now can capitalise and there are bargains (with bargaining) especially when the seller really must move.

What is the risk? Anticipating a further drop in prices can be negotiated into a deal and so the liquid buyer who can wait a few years for a return on their money is in a strong position.