Now building trade suppliers are getting trashed. Who's next...

amcluesent

Wolseley will this week outline plans to axe hundreds of jobs amid trading conditions that have become sufficiently dire to trigger a profits warning from the plumbing and building supplies group.

The company, which has a large US presence, will also say that the turmoil in the housing market, which has come to a virtual standstill on both sides of the Atlantic, has made forecasting near-term revenues increasingly difficult.

According to E&Y's data, the construction sector led the way in profits warnings in the second quarter, with 24 per cent of the FTSE's Household Goods and Home Construction sector warning in the period.

"The ripples from the credit crunch have spread far beyond the financial sphere," E&Y's report will say. "These are uncertain and treacherous times for UK plc."

As each layer of leverage gets unwound the house-of-toxic-debt is tumbling down until we get back to fundamentals. No wonder no-one is prepared to lend in case they're the next ones to get left with a lemon.
In the Great Depression, the bottom was found at 80%+ off the peak of the bubble.:eek:

LisbonLaura

amcluesent wrote: »

"The ripples from the credit crunch have spread far beyond the financial sphere," E&Y's report will say. "These are uncertain and treacherous times for UK plc."

In the Great Depression, the bottom was found at 80%+ off the peak of the bubble.:eek:

The coming depression is certain, & it has fundamentals ..... unlike bubbles.

My 70% off the peak forecast of the last eight months was revised down last week. Even I'm going 'GULP' now

PasturesNew

Next is what tradesmen spent their cash on: beer, football, 4x4s and holidays.
And what their other halves spent money on: designer clothes, haircuts, mobile phones, 4x4s, holidays, nail bars, tanning salons and wine.

Lotus-eater

PasturesNew wrote: »

Next is what tradesmen spent their cash on: beer, football, 4x4s and holidays.
And what their other halves spent money on: designer clothes, haircuts, mobile phones, 4x4s, holidays, nail bars, tanning salons and wine.

Not that we're generalising here, or anything like that :rolleyes:

!!!!!!!

fc123

I feel the full 'trickle down' effect is still 12 months away....takes a while to filter through..loss of job, live off savings (or build up a bit of debt), look for new job, cut back......a few months later, panic as no new job forthcoming or only one at a lesser rate of pay.
That's when the full effects will be really felt.
My shop T/O is already down, any more and we will def have a problem....Whilst I am subsidising it with other sources of income, there are only so many hours in a day and all that.
OMG we are racing to the finish line at the mo. I want to beat the impact of this meltdown. When rest of debt gone we can survive it...I hope.
I know we can do it. We just have to be faster + nimbler than the avalanche coming down behind us.
A bit of a late night panic post here?????
Got to apply all our brain power and intelligence to this one I guess.

Zammo

No need to panic, The economy is based on sound fundamentals, just like the housing market.

obsessed_saver

Sharp rise in UK profit warnings

http://news.bbc.co.uk/1/hi/business/7503966.stm

I think we'll see unemployment increases real soon. Companies/business don't bat an eyelid when it comes to protecting their bottom line. Unfortunately for all of us.

Generali

Sky have never really been tested by a big recession since they have become a mass market outlet. They were very small in the last recession and hadn't made big commitments to pay £billions to show sports etc.

Their advertising revenues are presumably being squeezed by the internet just like ITV's too. Could be one to watch.

amcluesent

> Could be one to watch<

Or not, as a lot of peeps are now thinking! Deffo. one to short, it's an easy one to cancel when finances get squeezed.

lostinrates

I think it would be interesting to look at who will not suffer, or suffer less, and I think the list will be shorter. Key public workers (though I think civil sevrice jobs will see further pruning if recession sets in for a bit), who else? Dh is ok ATM in his line of work too. are there any who actually benefit? I presume the extreme top end investors, though making losses are also excited by buing thing up at very low prices?

thriftybabe

PasturesNew wrote: »

Next is what tradesmen spent their cash on: beer, football, 4x4s and holidays.
And what their other halves spent money on: designer clothes, haircuts, mobile phones, 4x4s, holidays, nail bars, tanning salons and wine.

Having a giggle at this as my OH is a tradesman who has done very well;) No designer clothes - never been one to follow the pack. I like Next and Asda. Haircuts - a lovely girl comes to my house to do that so I make a nice moneysaving on this. Holidays - yes we have holidayed sometimes one or twice a year. No tanning salons for me and no wine albeit I like a nice bar of Dairy Milk. I have had the same mobile phone for 2 years now. I do have a 4 x 4 but it is a pickup!

As previously mentioned there are people around us who buy these things and are still doing so cause surely the government is going to get us out of this. Whilst my OH and I have no holidays booked (as thanks to MSE we were warned of all this happening in January of this year) the guys that work for us have their holidays booked. Do you think they will still be looking for their bonuses?:rotfl: :rotfl: