Thames Water nearing the cliff edge.
- Thread starter JohnD
- Start date
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There is a bleak picture from the public's view. Taxation at record levels. The various utility bills we pay. I include BT and council tax in those. NHS etc? what class is that. A utility really as far we are concerned. A lot of it is not getting enough money one way or another.
Business investments do need to show a suitable profit or their share value would plummet. Their usual method of further investment is debt. The only group that has money is the investors. A business will see no point in having much of it. Dead money doing nothing so minimise it.
So we pay out in all sorts of ways that the tax take can not cover even at it's current levels.
Business investments do need to show a suitable profit or their share value would plummet. Their usual method of further investment is debt. The only group that has money is the investors. A business will see no point in having much of it. Dead money doing nothing so minimise it.
So we pay out in all sorts of ways that the tax take can not cover even at it's current levels.
Wasn’t the sub prime mortgage crisis the result of re selling bad debts. Good old Fred! Protected from the public by a super injunction while journalists camp outside politicians houses and hack their phones for months on end with impunity
Loosely speaking it was we have sold all the mortgages we can to those that can afford them so take on some that can't. They'll manage and add some rather strange deals to get around problems. These appear to be related to insurance as some said they would go bust if they met the bills. Some also said the deals were so convoluted that it was impossible to understand them.
Net effect lots of money loss so along comes QE. Something that we are still dealing with. Probably helped by reduced inflation. An area I don't fully understand other than the value of QE handed out has to be maintained against that. End this - no. Reason given gilts selling at a loss.
Benefits to us. Said to be why cash ISA's are offering a better return now that people are moving them around more again. Said to be down to banks being awash with money - I don't understand that but it's happening.
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What else could they do. A lot of money just disappeared. Mts T's actions due to banks loosing money was very high interest rates. Prior to that I knew some one who worked in a major bank's back office who told me that rates would go up due to them loosing money in other parts of the world. They sure did not long after.
We cam blame Mrs T for a lot of things but I think she had lost her marbles by 2008
"Abu Dhabi writes off 9.9% stake in Thames Water
Writedown comes as UK government is hoping to attract institutional investors"FT.com
"Accounts filed in June by a Luxembourg-registered subsidiary of the Abu Dhabi Investment Authority (Adia), which holds a 9.9 per cent stake in Thames Water’s parent company, said that it had written down the entire value of its investment “due to the challenging regulatory environment and operational performance”.
Clearing up this Tory catastrophe is going to cost us a lot of effort and money.
We won't get it back from the people who looted us.
Delayed problems were increased when the accounting rules were changed so that companies could be loaded up with debt wth a view to future earnings. Inflation was low and savings accounts very little return. But debt was taken on at at least 8% interest. What a great return for guaranteed important assets which are too important to fail. Companies lending money from probabley their own hedge funds at over inflated returns. The owners are basically saying you are not clever enough to stop us and if you do, the Pension Funds will suffer.
The slow-motion crash continiues.
I see no prospect that the Titanic will avoid the iceberg.
" Robert Smith and Gill Plimmer in London 2 HOURS AGO
Thames Water’s battle for survival intensified on Friday when debtholders fell out over a proposed £1.5bn emergency loan and restructuring plan that would help the UK’s largest privatised water utility stave off financial collapse by Christmas.
The crisis-struck company, which provides water and sewerage services to about 16mn households in south-east England, is struggling under a £19bn debt load and has faced lukewarm demand for an attempt to raise as much as £3bn in equity from infrastructure investors.
On Friday, a group of creditors wrote to Thames Water complaining that they had been cut out of negotiations around a new loan to prevent a cash crunch at the utility, which has warned that it risks running out of readily available liquidity shortly after Christmas.
These creditors, which hold some of the lower-ranking bonds, have hired heavyweight litigation law firm Quinn Emanuel to represent their interests, after a large bondholder group ejected them on Thursday"
FT.com
I see no prospect that the Titanic will avoid the iceberg.
" Robert Smith and Gill Plimmer in London 2 HOURS AGO
Thames Water’s battle for survival intensified on Friday when debtholders fell out over a proposed £1.5bn emergency loan and restructuring plan that would help the UK’s largest privatised water utility stave off financial collapse by Christmas.
The crisis-struck company, which provides water and sewerage services to about 16mn households in south-east England, is struggling under a £19bn debt load and has faced lukewarm demand for an attempt to raise as much as £3bn in equity from infrastructure investors.
On Friday, a group of creditors wrote to Thames Water complaining that they had been cut out of negotiations around a new loan to prevent a cash crunch at the utility, which has warned that it risks running out of readily available liquidity shortly after Christmas.
These creditors, which hold some of the lower-ranking bonds, have hired heavyweight litigation law firm Quinn Emanuel to represent their interests, after a large bondholder group ejected them on Thursday"
FT.com
Yes, March wasn't it?.
fillyboy I sometimes wonder what planet you live on, are you related to Liz Truss ? Your views can be very eccentric from reality. Billions of pounds in debt mounting up and you don't see a problem ?
I see a problem alright, one that needs to be resolved.
In the meantime I'll carry on taking the p155 out of John in that they were on a 'cliff edge' in March, then April then May etc. etc. etc.
Filly has been claiming the EU is on the verge of collapse, yup you’ve been reliably predicting it for 20+ years
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