4 July 2008 |

Online is still a good place to be

Another day and more deeply depressing headlines about the UK economy. Firms ‘feel worst’ for 16 years and UK confidence near all-time low just two of the headlines on news.bbc.co.uk which greeted me this morning. It’s enough to make us all pack-up and leave the country (and incidentally the Canadian government are currently offering some very attractive incentives to do just that if you’re tempted…).

But, in the midst of all this doom and gloom there are still firms posting good news. And for those of us focusing on the trading that’s going on online rather than trading via bricks and mortar, let’s not lose sight of the fact that where we are is still a very good place to be.

Only a couple of months ago online retailer ASOS announced that their turnover was up 80% . But it’s not just turnover that looks healthy, online profits are doing well too. City analysts have issued dire profit warnings for most of the retail sector, with M&S’s profits expected to be down 27% year on year and DSG falling a staggering 60%. But  ASOS is tipped by analysts to show profits up 163% this year.

Why are we not hearing about any of this when we lift our daily papers? Well bad news sells of course and to my mind it’s yet more evidence of the mainstream media still not taking online very seriously. So let’s just sit quietly in our corners and keep delivering the good news for our clients and customers. Sooner or later the penny will drop…..

Tanya Goodin

Tamar Founder & Owner

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  • Rupert Nathan

    The reality is the “real” economy is in a mess, as well as the Government, who are also in denial. It should come as no surprise given Mr Brown’s willingness to accept all the credit when times were good – even though he inherited a very sound economy. Remember how he boasted of having eliminated “boom and bust”? Now times are turning bad, he now attempts to claim it is all caused by “global” factors. While Mr Brown, and his acolytes appear deluded, and out of touch, this seems to something afflicting the whole political class wrapped up in their hubris, and generous taxpayer- funded perks.
    I fear the sub-prime crisis is only the tip of the iceberg. The banks are desperately attempting to fudge and hide the full extent of their losses from their US real estate exposures via CDO’s (while the authors of this misfortune – i.e. the Bankers such as Applegarth at Northern Rock walk away with massive payouts – or rewards for failure; and the politicians make their excuses, and vainly attempt to talk up the economy to protect their own reputations and jobs) However, the real elephant in the living room, will be the CLO’s – Collaterlised Loan Obligations – the private equity market’s version of CDO’s. The size of this market dwarfs the CDO market, and the cracks are starting to appear (e.g. Boots’ difficulty re-financing their record buyout; and the Bank of International Settlements’ reports suggestion corporate junk bond defaults to rise from 2 to 10% this year) The chickens will certainly come home to roost if anything like this occurs, and we will all well and truly pay the price for the recent debt binge during the decade of greed and conspicuous consumption. I only hope I am wrong…

  • Rupert Nathan

    The reality is the “real” economy is in a mess, as well as the Government, who are also in denial. It should come as no surprise given Mr Brown’s willingness to accept all the credit when times were good – even though he inherited a very sound economy. Remember how he boasted of having eliminated “boom and bust”? Now times are turning bad, he now attempts to claim it is all caused by “global” factors. While Mr Brown, and his acolytes appear deluded, and out of touch, this seems to something afflicting the whole political class wrapped up in their hubris, and generous taxpayer- funded perks.
    I fear the sub-prime crisis is only the tip of the iceberg. The banks are desperately attempting to fudge and hide the full extent of their losses from their US real estate exposures via CDO’s (while the authors of this misfortune – i.e. the Bankers such as Applegarth at Northern Rock walk away with massive payouts – or rewards for failure; and the politicians make their excuses, and vainly attempt to talk up the economy to protect their own reputations and jobs) However, the real elephant in the living room, will be the CLO’s – Collaterlised Loan Obligations – the private equity market’s version of CDO’s. The size of this market dwarfs the CDO market, and the cracks are starting to appear (e.g. Boots’ difficulty re-financing their record buyout; and the Bank of International Settlements’ reports suggestion corporate junk bond defaults to rise from 2 to 10% this year) The chickens will certainly come home to roost if anything like this occurs, and we will all well and truly pay the price for the recent debt binge during the decade of greed and conspicuous consumption. I only hope I am wrong…

  • Rupert Nathan

    The reality is the “real” economy is in a mess, as well as the Government, who are also in denial. It should come as no surprise given Mr Brown’s willingness to accept all the credit when times were good – even though he inherited a very sound economy. Remember how he boasted of having eliminated “boom and bust”? Now times are turning bad, he now attempts to claim it is all caused by “global” factors. While Mr Brown, and his acolytes appear deluded, and out of touch, this seems to something afflicting the whole political class wrapped up in their hubris, and generous taxpayer- funded perks.
    I fear the sub-prime crisis is only the tip of the iceberg. The banks are desperately attempting to fudge and hide the full extent of their losses from their US real estate exposures via CDO’s (while the authors of this misfortune – i.e. the Bankers such as Applegarth at Northern Rock walk away with massive payouts – or rewards for failure; and the politicians make their excuses, and vainly attempt to talk up the economy to protect their own reputations and jobs) However, the real elephant in the living room, will be the CLO’s – Collaterlised Loan Obligations – the private equity market’s version of CDO’s. The size of this market dwarfs the CDO market, and the cracks are starting to appear (e.g. Boots’ difficulty re-financing their record buyout; and the Bank of International Settlements’ reports suggestion corporate junk bond defaults to rise from 2 to 10% this year) The chickens will certainly come home to roost if anything like this occurs, and we will all well and truly pay the price for the recent debt binge during the decade of greed and conspicuous consumption. I only hope I am wrong…

  • Rupert Nathan

    I am not wanting to say “I told you so”, but things appear very grim. I regard the US efforts to bail out Wall Street with scepticism. Barring some miracle, or stroke of geinius by someone, somewhere, things could become a whole lot worse.
    So much for Gordon Brown’s oft repeated boast of eliminating “boom and bust”.