Branch distribution by banks is dead.

We have seen headlines heralding the ‘death’ of brokers, however perhaps we need to look at the whole financial distribution market and instead of worrying about brokers take an objective view of enterprise, efficiency, and distribution in general. I did some research on this by looking at the American market, talking to other brokers, by looking at operational efficiency planning in other countries and markets, and lastly was by putting up a post on www.thepropertypin.com which is a site where regular folks who are bearish on property (and into economics) hang out.

There are a few sites out there that I like to browse in order to gauge public sentiment, but the ‘Pin’ as its referred to by the folks who frequent it is perhaps the most open and honest, and it tends to have some heavy economic technicians frequenting it. Granted, the tone of the site is not one that perhaps everybody agrees with but the calibre of the posters knowledge is well above the average Internet forum.

Regarding the …

Read More

The Credibility Crisis

I have written before about what can be termed a ‘credibility crisis’ and when I used that terminology it was in reference to the collapse of Bear Stearns and the fact that Alan Schwarz had said on a Tuesday that there was no problems with the bank (reminding me of the Alfred E. Neuman ‘what me worry?’ pictures) and then come Friday they were nose-diving into closure.

Credibility is a large part of what the worldwide financial crisis is about, and how that plays itself out in the market is something that should concern everybody because the foundations of any economy are not just the laws or the constitution but instead they are also the financial and economic management structures.

Solicitors of the world may disagree with me however, I would argue that wealth of itself has little to do with civilisation and advancement, because countries like the Democratic Republic of Congo, Nigeria, and Iraq are incredibly wealthy nations in terms of what they potentially have but due to money not flowing (and political corruption of the economy) they will …

Read More

Lose your collusion… Irish Banks show just how little they care.

As George Bush once said ‘Fool me once, shame on you, fool me twice…shame…well you’re not gonna fool me twice’. Banks however have done this and so much more in the last few weeks that how it’s not front page news has me flabbergasted! Are the Irish public meant to really believe the picture we are seeing unfold? Apparently so…..

Let’s look at the picture so far and put it in a time-line, then we can look at that time-line and try to discern if it was sheer co-incidence or opportunism that has lead to the moves in the market.

Tuesday 4th December: Ulsterbank cut brokers income by 50%, no explanation, and done by email. It would be laughable if it were not so serious.

Tuesday 11th December: PermanentTSB announce brokers income will be cut, to be fair they gave a lot of warning, because of the size of PTsb this action kicked off an industrial dispute, nobody cared about ulsterbank but PTsb was a market giant.

Then came the waiting game, to see what the result of the industrial …

Read More