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Original poster

Anyone here work in the city, or close to those that do? What is the UK heading towards?

16 replies

SkirtingBored · 05/10/2008 17:42

How are people feeling? Is there a palpable air of fear, could it all go to pieces? Or is it 'just' that we are heading for an anticipated downturn?
I think it is obvious we are going into a recession, but will it be as bad as some people predicting? Are city people really worried that the current situation is nothing like they have seen before and there are no plans that could fix it?
I keep hearing both sides of the argument, but not from those who are actually inside the banks and trading companies feeling he atmosphere?
Anyone care to share any experience/anecdotes?

OP posts:

Original poster

SkirtingBored · 05/10/2008 19:49

kids-in-bed type bump?

OP posts:

littlemissbossy · 05/10/2008 19:54

I don't work in the city or know anyone who does but I do know someone high up (in our region) at one of the top banks. When I asked him if things were as bad as the media keep saying - he said they are even worse [sigh]

NorkyButNice · 05/10/2008 19:56

It totally depends which company you are currently working for, and which area within that company you reside.

I work for one of the banks that is doing relatively well - we're buying up the competition rather than being the ones failing. Even so - certain areas within the 2 merged banks will be facing redundancies before the year is out - I'm lucky in that my role is secure.

So I guess for those working in less successful banks, it must be looking pretty rough right now. This is certainly the worst I've known it in the years I've been in this industry.

awkwardquestion · 05/10/2008 19:56

i do work in the city and am not getting good feelings. though it is mostly about confidence it is all quite random what might happen next. hold on to your hats we could be in for a scary ride. but it might be ok....

Original poster

SkirtingBored · 05/10/2008 20:30

Thank you. I don't envy any of you working in banking/finance at the mo....

So, if a lot of this is about confidence, how can that be restored? Are there any tricks left to pull, or is it that the financial world realises it has been caught out in a lie? HAS there been a lie or is it just same old same old?

OP posts:

bythepowerofgreyskull · 05/10/2008 20:32

a close friend works for Coutts they have alot of very worried very wealthy clients.. their biggest problem is calming the fears of these people.

annh · 05/10/2008 23:34

My dh works in the City (thankfully no longer with an investment bank) and he is not worried about his specific job (I do the worrying for both of us!) but he said the place is in complete lockdown - he is in commercial property lending. Banks are not lending to each other either because they have gone out of business, have been taken over or are afraid to lend. And he doesn't think anyone knows what might happen next although there are lots of opinions - City people always have an opinion delivered with great authority!

Original poster

SkirtingBored · 06/10/2008 10:53

Thanks ann. Just been watching News24 - not looking pretty today - FTSE down a lot. Like you say, no one seems to have any confidence that they know what will happen next...

OP posts:

ohdearwhatamess · 06/10/2008 13:01

According to dh (partner city law firm, banking), this is not going to be 'just' a recession, but far, far worse. His view is that it will be about a year from now that we'll really see it with job cuts on an unprecedented scale.

From his point of view, banks have lost all confidence in one another and/or have no funds, so they won't lend money to one another. So they don't need bankers, and they don't need lawyers to sort out their deals. Then, obviously, they don't need all the 1000s of support staff, and so on.

expatinscotland · 06/10/2008 13:04

What people need to understand is that recessions are a normal and inevitable part of ANY economy.

They will always happen at one point or another, no matter how much the government tries to head them off.

They always have done and they always will.

Cadmum · 06/10/2008 13:08

We are currently living in Switzerland so my experience is less relevant but the investment banker who lives next door is very depressed. He has sold one car and taken the other off the road in favour of a motorcycle.
Another neighbour who works for Coutts has just bought a Porsche...

hoarsewhisperer · 06/10/2008 13:31

i work in the city and it's just not pretty at the moment. Share prices are falling and no one knows where the bottom is for banks in terms of their share price, but no one has even thought about the impact on the rest of the economy yet. Companies can't get loans either, or certainly not at cheap rates and as such many mid sized companies will be forced into liquidation in the coming few years. Back in the 1990's the Swedes had a banking crisis similar to what we have now and it cost them a massive amount of state money to solve, and caused a serious recession. My personal money is on this being a 5 year recession.

At the moment i have a good job, and hope that i will still in a year. But i am already curtting back on so many areas of spending, because if push comes to shove I want as many months salary saved as possible.

it'\s grim, in a word

Turniphead1 · 06/10/2008 13:38

My DH is a trader in a large bank in the City. He has never seen anything like it in 11 years and yes - it's as bad if not worse than the media is making out.

MrsDanversApron · 06/10/2008 13:38

Have you seen the news about Iceland? Not only have they suspended trading they can't afford to import food or gas/oil...

As regards the UK, I think that this recession will make the 90's downturn look like a walk in the park.

As an ealier poster said...in 12 months time we will see massive job losses, repossessions, drastic falls in property prices.

ohdearwhatamess · 06/10/2008 13:44

Already in my local town (in reasonably prosperous Herts) so many shops have closed own and are sitting empty already. I fear it will be like a ghost town a few months from now.

hoarsewhisperer · 06/10/2008 13:46

I think the news about Iceland not being able to import any food anymore are slightly overdone. The banks do have problems, but the government still has money at the moment (although how much if they bail out the banks remains to be seen). They are going to start selling overseas assets to get money in.....that means Uk assets too folks as they own House of Fraser, hamleys et al.

The uk economy is one of the worst placed in europe to ride this out as the consumer is the most geared. dont rely on inflation to bail you out of debt either, because your major assets such as property are going to be deflating and going down in value for some time to come.

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