Whilst it is important to be clear and honest, it is also imperative that our leaders understand that what they say and how they say it are absolutely vital to the attitude of consumers, investors and of course companies. If we don’t have confidence, then we don’t spend as much and companies don’t invest as much. Thus the comments from Mervyn King, Governor of the Bank of England may be heartfelt on his part, and may also be true, but potentially are having a greater effect than he may have intended. Now let’s be clear, I am not asking anyone to be telling lies or in any way to be misleading people, but our leaders need to be very cognisant of not just what they say but how they say it.

For example just the other week he came out with the phrase that the world faced “an exceptionally threatening environment” that could “spiral” into a systemic financial crisis. Of course this could occur under certain circumstances but if our leaders, along with our media, keep highlighting the darkest of outcomes, we have to then beware that we don’t turn it into a self-fulfilling prophesy. We all need to see a light at the end of the tunnel – without light there is just gloom!

The comments I hear from the CBI and many other industry bodies seem to be being interpreted by the media as wholly negative, when in fact this is in stark contrast to the reality I am finding throughout the United Kingdom. I can’t recall the last time I came across a business saying that its outlook was awful and unless things changed they were doomed – instead I find that many have, as many smaller companies do, adjusted and changed to circumstances because they have to survive. They are smaller, leaner, skinnied down, but surviving and some are even doing quite well.

The common theme is often that they have remained clear of the banks and are largely financing themselves in any way they can. Many would like to grow, but know that the cost and reliability of much finance is uncertain and unattractive. Now add to that the depressing words of the Governor of the Bank of England, and that is just a further erosion to the necessary confidence that is required by anyone running a company to make the decision to invest.

Usurers and Fences!

It was the headline I had been dreading but expecting, “millions drawn into short term pay day loans”. Earlier this year I wrote about these sharks masquerading as responsible lenders.

These usurers, often exported from the USA, claim that they are providing a service that prevents people otherwise falling into the hands of loans sharks – oh yeah? I see, so that if I don’t sell you ketamine then a drug dealer will? Does that make it acceptable? Of course not. Perhaps our politicians could turn their attention span (limited though it may be) to turning financial regulation and control to this area.

I remember when I had short trousers that we used to have the Consumer Credit Act, which capped interest rate levels, but that seems to have gone by the board or seemingly had its teeth removed. So is a rate of 4000% per annum acceptable?

It is interesting to note that of course all three Abrahamic religions ban such behaviour, but now in our secular society have we dropped all such inhibitions?

Reaction has been a shrug of shoulders from some, saying “what can we do?” And the answer is a lot. Everything from the use of local credit unions to better, to some, or even any, financial education would make a significant difference – but above all what is our financial regulation industry going to do about it – now!

Oh and let me add in the cash for gold vendors and the cash for mobile phone schemes. This is just a glorified licence to go and “obtain” said articles in any way you can and send them to these people without any issue of ownership or responsibility. I think I remember that this used to be called fencing goods! Perhaps we have just reinvented the old “market overt” system which used to operate at various markets, so long as it was still night and dawn had not broken – and then ownership could pass legitimately.

And finally....................Hatching eggs, scratching around the coop and roosting on a beam with the rest of the hens are great habits for chickens, but rather unusual for an eight month old male rabbit.

The confused bunny came as a free gift to Ville Kuusinen's home, when he bought nine Silkie hens and a rooster from a farm.
The Kuusinens and their three children live on a small island in Velkua some 210 km (130 miles) northwest of Helsinki.

"When I went to the hen house, I noticed he was sitting on the eggs. Later I watched through the window how he jumped on the beam, failed, tried again and with a lot of practice eventually he stayed up there," Kuusinen told Reuters.

Otto does not like to sit on laps or eat carrots like most pet rabbits. The rabbit, who has lived with chickens all his life, prefers chicken feed and runs with the chickens outdoors and sometimes plays with them by jumping over them.

"For the chickens he is one of them. He often sits on the beam between the hens and under their wings", Kuusinen said.

But he said Otto's rabbity instincts still take over when a visitor steps into the hen house. He runs away and hides, but can be lured out with raisin buns. Well can’t we all.

Have a good week.

Justin A. Urquhart Stewart Director Seven Investment Management Limited

P.S. Apparently there has been a new innovation for all Geordies – the Newcastle App – the iPet.