Your views on the news

[walcot red]

I don't watch the news as it's far too depressing but I must admit I find this pretty reprehensible. How can the Government who are supposed to be acting in our best interests let them get away with it?

They're in it for themselves. They're cunts. Or both.

[stfcinbmth]

They're in it for themselves. They're cunts. Or both.

Both probably fits the bill

[jonny72]

I don't watch the news as it's far too depressing but I must admit I find this pretty reprehensible. How can the Government who are supposed to be acting in our best interests let them get away with it?

Technically what they are doing is legal, though there is maybe a question over them artificially inflating the prices they pay to other parts of the same company for services and products. So Starbucks pay an inflated price to their subsidiaries for the beans and the rights to use the Starbucks name and branding - moving the actual profit to those subsidiaries. Which may be illegal and some companies are being investigated over this.

I'd argue the real problem is with the Governments that set ridiculously low tax rates and the EU for letting them. Not sure it helps their economies in the long term, they are just giving money away to the big corporations and taking it from other countries. Take Ireland for example, it didn't help them avoid needing a hand out and the countries that bailed them out (the UK and the richer EU countries) are the very ones they are basically stealing from. I'd have told them to go fuck themselves.

Apple are pretty bad for this, even in the USA. If a state wants them they have to give grants and discounted tax rates. Once they've got them and setup the operation, Apple then divert their profits to places they can pay even less tax. If a state questions their behaviour Apple threaten to up sticks and go elsewhere. Of course if the states got together they could stop Apple from doing this, make them pay more in taxes to the benefit of everyone. Except everyone just thinks about themselves.

[ghanimah]

I'd argue the real problem is with the Governments that set ridiculously low tax rates and the EU for letting them. Not sure it helps their economies in the long term, they are just giving money away to the big corporations and taking it from other countries. Take Ireland for example, it didn't help them avoid needing a hand out and the countries that bailed them out (the UK and the richer EU countries) are the very ones they are basically stealing from. I'd have told them to go fuck themselves.

Presumably you're not suggesting that the unelected EU should tell countries how to set their own tax rates? As for Ireland they were fucked by joining what is essentially a flawed currency

[jonny72]

Presumably you're not suggesting that the unelected EU should tell countries how to set their own tax rates?

They already do - there is an EU minimum VAT rate of 15%.

[Simon Pieman]

On the flip side Starbucks will have paid loads of taxes in the form of VAT and Employers' National Insurance contributions.

[Samdy Gray]

http://www.bbc.co.uk/news/uk-20091472

What a great idea, let's raid pension funds and use the money to build houses!

Then when house prices finally correct, not only will a lot of people be in negative equity they won't have a pension either. Genius!

[wiggy]

http://www.bbc.co.uk/news/uk-20091472

What a great idea, let's raid pension funds and use the money to build houses!

Then when house prices finally correct, not only will a lot of people be in negative equity they won't have a pension either. Genius!

This beggars belief.

The pension funds are not an asset of the council.

Architects in saying people should emply them more shocker.

[Ardiles]

http://www.bbc.co.uk/news/uk-20091472

What a great idea, let's raid pension funds and use the money to build houses!

Then when house prices finally correct, not only will a lot of people be in negative equity they won't have a pension either. Genius!

I agree with the general point that pension funds should not be used for something like this.  But responding to the secondary point about house prices, they have been correcting now for some time.  In real terms (ie adjusted for inflation, which has let rip during the double dip), they are something like 20% below the 2007 peak.  Even when compared to average earnings which, obviously, have not kept pace with inflation, the house price/average earnings ratio has fallen back towards the historical average.  Not sure there is much more of the correction still to come - barring another blow up/Euro collapse etc.  Prices also being supported by a massive undersupply of new homes and very low interest rates - neither of which are likely to change any time soon.

[Samdy Gray]

Agree with you entirely about the values vs. inflation, but I do not believe there has been a proper correction. There is a very large negative equity bubble forming. When that bursts property will not be able to sustain it's capital value.

[Arriba]

Its nothing new. Governments raided the royal mail profit pot for years to fund other things then said there's no money left and the public swallowed it blaming the postmen's greed-lazyness.

[Ardiles]

Agree with you entirely about the values vs. inflation, but I do not believe there has been a proper correction. There is a very large negative equity bubble forming. When that bursts property will not be able to sustain it's capital value.

But the trend from the last 3 to 4 years has reversed.  Instead of borrowing more against their homes (as they did during the bubble years), homeowners are now paying down mortgage debt faster than the banks are making new loans...assisted by rock bottom interest rates.  There are always going to be those at the margins who lose out but, across the general homeowning population, I'm pretty sure that the negative equity situation is getting better, not worse.

[Samdy Gray]

No, it's increasing year on year according to JPMorgan's latest guide.

Some examples below showing % of mortgages in negative equity, year on year (2010 to Q4 2011):

North West 10.1% 11.5%
North East 7.2% 11.9%
West Midlands 5.0% 8.2%
South West 2.1% 4.9%

[Ardiles]

Then I stand corrected!

[Reg Smeeton]

 I was interested in reading today that HM Government has politely turned down US soundings, about their using our bases on Diego Garcia, Ascension Island and Cyprus for a pre-emptive strike at Iran nuclear facilities...apparently it might be illegal.

Nevertheless, the Israelis will have no such scruples....Obama or Romney