A few observations

The Friday Letter One

I was delighted to hear this morning someone (from the Evening Standard) have a pop at the heads of the banks. This financial mess we are in, or has been imposed on us are mainly due to irresponsible lending. Who in there right mind would lend to someone more than they had? It seems to me that a 110% mortgage is daft. Just in case some of you didn't know, the banks set out mortgages, and then sold these mortgages for securities to sell more mortgages. "Reap what you sow" springs to mind!

The financial climate seems to be one of debt and loans.
I remember years ago with my dads business which always seemed to have an overdraft. My dad tried his hardest to reduce the overdraft. He knew that it was wrong. I was taught at home that if you wanted something (normally toys!) then you either saved up for it or you hoped that you got it for Christmas or birthday. At school it was the case that you made profits to invest back into the business so it can grow and then make more profits etc. Sometimes there is a case for borrowing short term to expand or invest, but it shouldn't be the norm. Now it seems to be the norm. I wonder just how many businesses don't have loans or an overdraft or in debt of some sort. The problem with borrowing is that you become 'the slave' of the lender. Not good.

I was thinking the other day about Gordon Brown (Prime Minister) and his future and as to why people and other ministers are having a go at him, even wen he is on holiday and therefore not in the light to reply or defend himself. I was reading the other day about a business conference in the USA where the main subject was leadership. The conclusion of the conference was there was nothing less than a crisis of leadership in American society; the nation was being guided, not by leaders but by managers and its condition could be described as being over-managed and under-led*. I think this is true of the UK now. Gordon Brown I think is a good manager, but as a leader I'm not sure. Tony Blair had a vision and everyone could see it. I don't even know what Mr Browns vision is. 
In the book of Proverbs it is written: Where there is no vision, the people are unrestrained. In other words, without a vision, there is no focus, no path, and people feel lost.

Shell announced massive profits and cash turnover, but still charge lots at the pump. They say most of the price at the pump is tax, which is true. But, Shell extract the oil, refine it and then tanker it to the forecourts. Each part of the process is done but a different part of the business. So Shell sells to Shell the extracted oil, who then refines it and sells it to Shell, who then sells and transports it to the forecourts (Shell) who then sells it to you and me. So who's making the money? Shell (except the "forecourt Shell") and the government (about 64% of the pump price). It staggers me that various companies set themselves up so they can make full use of a market and appear to have a clear conscience where in fact they have us over a barrel and no-one sees it, or if they do, not to question it. After all, Shell is Shell is Shell, isn't it?

On a lighter note,
The name Jean Luc Picard of the Starship Enterprize was apparently named after John Picard who liked to fly by being attached to helium balloons!