We told you about it and, unfortunately,we were right.
What is going on in London and several cities around the UK? - British retailers set to lose millions after riots
British retailers set to lose millions after riots - LONDON (Reuters) - British retailers face tens of millions of pounds in costs and losses following rioting, looting and arson across and beyond London, and the impact on smaller businesses could be ... [BN-Net Retail News]
Terrible news, unbelievable images, hard to understand background is being splashed around the world media.
What is going on in London and several cities around the UK?
Are this just mindless thugs, misguided teenager, criminals and gangs roaming the streets to have "fun" and free goods?
If we think like this - do we miss a point or two?
Is there a link to the recession?
- British Gas announces 18% and 16% rises to its gas and electricity prices and others are following without hesitation - see The Guardian etc.
- British Gas has revealed profits of £518m – or almost £3m per day – over the last six months - tells us The Telegraph.
Admittedly, the parent company made less profits this year - but 1.2 billion in six months is still good going. Show me someone who is ahead this year going to work everyday after paying all the bills and keeping his place warm, light up and all mouths fed.
So, while companies like British Gas are driving inflation I would think they went too far this time. What is a rise of 18% (16%) telling the general public in this depressing climate? 'We want our cake and eat it? We take your money and you can't do anything about it!?!'
m&m has been a bit quite for a while and now we are going to bury this in the summer hole.
Double dip Recession
You can run a search on "double dip" here on m&m using this link. What you will find is that I and we at m&m always believed that we are heading for a double dip recession. It more and more looks like we were, unfortunately, right.
The main reason to believe a double dip recession would be unavoidable is (was) based on the figures and an outlook to the future. I talked about the certainty of a recession in 2007 because it is what happens. After a boom comes a recession - as certain is few things in life.
When we were heading into the recession in late 2007 / 2008 we slowly understood the immense size of the debt build up. Well, we had been warned of the trillions piling up for years - especially in the US and in Britain. And there was the deluded, unchecked spending sprees in places from Ireland to Greece - crash landing a deceived population.
With such large debt everywhere and governments trying to cushion the harsh landing on borrowed money and time - it became clear that we will not recover easily and that this softening the blow was the start for the double dip.
Sure, the double-dip will not be the same everywhere. Some larger countries and economies like Germany and France will be hit less, though, no one is out of the woods on this.
The big Crunch .. or not?
Reading through the news tickers on m&m - News - the picture of the world economy is far from clear. It goes up here and down there. The next day the messages are in reverse and on day three we have more bad news with the public debt rising everywhere.
Cutting public debt now and risk another dip - the double dip recession - or wait and spend to fire up the economy?!?
UK households £6 a week worse off than last year - The average UK household was 3.8% worse off in February than a year ago as weaker earnings and inflationary pressures hit discretionary income. [Retail Week - News]
Do people really feel the difference of £6 a week and stop spending or do they stop spending even more because they worry about being worse off?
Germany is coming out of the recession.
Was the headline not long ago. Now we hear that retail sales are down by 4% or so year on year.
One of the old household names in retailing there - Quelle - a mostly catalogue / mail order business is going down into bankruptcy with a total sale-off until Christmas. Quelle went down following the demise of Arcandor the troubled company behind one of the last two remaining German department stores - Karstadt. They also owned 53% of Thomas Cook.