The economic perspicacity of the Sage of Ely

I am also absolutely certain that we need rent holidays, but that these will represent an absolute loss to the landlords because they have the strongest lines of credit available to anyone in the UK economy.

Oh Aye?

The owner of some of the UK’s biggest shopping centres, Intu, has said there are doubts that it can survive unless it raises extra funds.

Its comments came as the firm – which owns Manchester’s Trafford Centre and the Lakeside complex in Essex – reported a £2bn loss in 2019.

The weakness in the retail sector meant Intu wrote down the value of its shopping centre sites by nearly £2bn.

The real problem here being that Snippa doesn’t realise that we’ve already got a system to sort through these sorts of problems. It’s called “the market”. Peeps will look through who owes them money, for what, and make decisions based upon the details of the circumstances. A bank isn’t going to call in one third, or a half or whatever, of its mortgages because peeps are two months behind on their payments as a result of self-isolating. It might well still call in that one that’s 5 months overdue because the borrower’s a feckless bastard. The baker’s not going to bankrupt the sandwich shop for non-payment of last month’s bread bill.

Everyone knows that a certain selectivity over who to pursue for debt is going to have to happen. And they – the peeps, the individuals – will do better at it than any government scheme. Precisely and purely because of the level of knowledge of the detail.

8 thoughts on “The economic perspicacity of the Sage of Ely”

  1. because they have the strongest lines of credit available to anyone in the UK economy.

    No idea if this is true or not (Ritchie probably doesn’t know either). But who is going to lend more to landlords when they are simultaneously asking for a fairly open ended repayment holiday?

  2. Most amusingly Spud is quoted by the esteemed journalist John Lloyd in a long article in the FT about Scottish independence.

    ‘Murphy, professor of international economics at City University, advises the creation of a new currency, the attraction of financial services and an industrial strategy tailored to its strengths — and thus foresees a country able, after early turbulence, to stand as an independent state.’

  3. Really, the Spud only wants everyone else to be as poor and miserable as he is. Misery loves company.

  4. And banks and credit ratings agencies being staffed by people with marginally more intelligence than the East Anglia Tuber, they can and do rate any landlord’s credit on the state of his mortgage. On the subject, I can just imagine potato’s landlord emailing him photoshopped pictures of himself smoking Havana cigars in a Porsche while a Ukrainian mail-order bride performs unmentionable sexual acts on him and saying “Your rent is paying for this! Bwahahaha!!’. God knows I would in this hypothetical landlord’s position.

  5. Tim

    I do feel that you’d be better off putting a picture of a turd on the blog rather than drawing attention to someone who is clearly in the early stages of dementia – I know he’s a man who is arguably the embodiment of pure evil but this is verging on cruelty to an animal

  6. Two years ago, property and shopping centre giant Hammerson proposed a £3.4billion all-share offer for Intu, owner of the Trafford Centre. The bid fell apart amid investor resistance and, after another stock market beating, Intu is now worth just £85million….Intu is sitting on a debt mountain of £4.5billion…The shares now stand at a 95 per cent discount to net asset value, and the company is frozen out of capital markets with the auditors expressing ‘material concern’

    I see vultures circling. Will these delays in payment bankrupt Invoice Factors?

  7. Bloke in North Dorset

    Phillip,

    “ Not for nothing is he known as the Sage Of Down Market”

    🙂 🙂 bravo. Sir.

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