After reading a book about applying the theories of Adam Smith it seemed many points raised in the 1st Chapter are worth debate. Is and should the other side of any financial institutions Risk Log be Morality in a similar way to the Capital and Trading Investments of the organization. Another name for Morality in a corporate sense is Governance. So this should in theory keep the Risk Log in check. Like the US leading investment bank, Goldman Sachs announced that no investment would be greater than 1% of its Capital.

So this brings out the answer most failed banks did not operate the Risk and Governance (Morality) model as indicated above. And, why have the organizations behind the Basel accord not spotted this. Or if they did, are Central Banks or Federal Banks failed to regulate banks under their regulation.

Another Adam Smith book (1) covers Morality in society and its this lack of reflection that organizations fail on. Corporate Responsibility aims to address this and it has a growing movement, supported by the laws and directives in different countries. Both National and Local Government need to apply the Risk and Governance model on their investments with payback over 25 or 50 years. Also their Capital model needs taxes and other income streams to balance against their investments. They would struggle to match Goldman Sachs aim with 1% of capital per investment and therefore need to be G20 goals agreed and set for each country. Even looking at it in this way is good at communicating the points raised above.

Mortgage Banks (Fannie Mae and Mack in the US and Northern Rock and Bradford & Bingley in the UK) failed through not applying the Risk and Governance (Morality) model vs income and investments. Eastern Europe and all other developing countries around the globe need to learn from these mistakes and from the greatest book (2) written by Adam Smith and being promoted by the Adam Smith Institute.

1 The Theory of Moral Sentiments, 1976 by E G West

2 The Wealth of Nations, 1975 published by J M Dent & Sons

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Hey everyone, I decided it would be a great idea to post up the latest news from Google so here it is…

Electrograph To Liquidate, Done In By Economy, Credit Crunch

According to a statement from Electrograph, the economic downturn and a lack of access to credit were responsible for Electrograph's demise. …  Read More…

Liverpool insolvency expert Begbies Traynor foresees years of work …

In a trading update for the year to April 30, chairman Ric Traynor revealed: "Prospects for insolvency and corporate recovery remain very strong given the …  Read More…

65% of MEPs want greater political union to fight credit crunch

More than 65 per cent of EU parliamentarians favour greater political union to help overcome future financial crises, but only 21 per cent of UK and Ireland …  Read More…
That’s all the news for today guys, so until next time, thanks for stopping by.

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The credit crunch has affected all industries, and private education is not an exception. In the UK, almost 20 private schools have either already been closed or announced that they will be closing in the next few months. Parents are forced to look for alternatives in these circumstances, leading to the increasing popularity of home schooling by full-time private tutors. Affluent families switching from a closing private school to home schooling by a full time private tutor are realising that the change is more than a solution; it’s an improvement. With more positive mainstream media coverage than ever before, attitudes towards home schooling are changing and the credit crunch seems to be creating a renaissance in home schooling.

Home schooling marks a return to traditional teaching methods

Educating a child in a school setting is a relatively recent phenomenon; compulsory education was introduced as late as the 1880’s. It took a significant period of time for schooling to become recognisable as the formal schooling provided by the state as seen in the twenty-first century.

For the affluent, the history of education has run a different course; wealthy families have traditionally engaged the services of a full-time private tutor – often a governess – to educate their children. Private schools were few and far between, often offering a predominantly religious education, or preparation for life as a naval officer or other specialised profession. Private schools as we would recognise them today didn’t establish themselves until as late as the nineteenth century, and now that some are closing due to the credit crunch, parents are going back to the traditional method of educating their child with a full-time private tutor.

A private school closure forces parents to re-evaluate how their child is educated

The closure of school is incredibly stressful for all involved, especially as in some cases, the announcement can be sudden and with little notice. A private school is run as a business, therefore closure can take place just as suddenly as it can for a failing company. If there are no other suitable schools in the area, the family may have to consider moving house in order to find a place to educate their child.

When faced with the prospect of having to sell the family home, leaving behind friends and neighbours, school based education has suddenly turned into an inconvenience. This is when a family seriously considers home education.

Private tuition that is tailored to the child

Private schools are often excellent at providing extra help where needed, or additional activities for the gifted child. However, nothing compares to the simple fact that professional home schooling carried out by a full-time tutors results in education that is tailor made to suit the child’s learning style. The tutor receives immediate feedback and can alter explanations accordingly, so the home schooled child is never left behind when they find a new topic difficult, nor bored when the subject is something they find easy.

Home schooling a teenager in the critical exam years

If there is someone in the family who has the time to school a child at home every day, home schooling for a younger child may be possible for a parent. However, if the child is on the brink of critical exams, parents need to recruit a private tutor to deal with the more advanced curriculum. A dedicated full-time private tutor is an ideal solution, as the best tutors are able to educate at that level in all subjects. This removes the need to juggle several tutors for short slots, and ensures that the child receives the best education possible, along with tailored exam practice. The child can still be entered into public examinations, so the switch to home schooling with a full-time private tutor is actually beneficial.

Home schooling and socialisation

Once parents have realised that, educationally speaking, home schooling is usually going to be better quality than that received at school, the next concern is socialisation with peers. The image of a child at home, constantly studying and not talking to anyone else their own age is wildly inaccurate. The best full-time private tutors are highly skilled at finding local clubs and activities designed to provide the opportunities to socialise and also experience a wide range of pursuits.

Many teachers and university tutors comment upon how self-assured, independent and proactive home schooled children are, and when one considers the nature of school based socialisation, it may not be as important as first thought. There are likely to be other children with whom social time is detrimental, and the social conditions experienced at school are quite artificial. There are very few professions in which it’s advantageous to be able to sit still in a room with other people at exactly the same age but differing interests, abilities and aspirations. Socialisation oriented around a common interest is rewarding and much closer to adult life, and is also likely to provide more experience in how to deal with a wider age range that school will provide.

Home schooling fits around a lifestyle, rather than life fitting around school

For the families who have employed a full-time tutor after switching from school education, the benefits of being independent of the school calendar are apparent. Holidays can be enjoyed as a family at any time of year. Travel plans can be more ambitious and integrated with the child’s education, as the tutor can travel with the family and tailor lessons to incorporate local history, language, culture and places of interest. There are no longer any reasons to delay trips, as they will no longer interfere with the child’s education, on the contrary; it will often enhance their education greatly.

These are just some of the reasons why we are seeing a renaissance in home schooling by private tutors. Education for the affluent seems to be coming full circle; the benefits provided by a dedicated tutor making home schooling a preferred choice, rather than a last resort when the local private school closes.

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Hey everyone, I decided it would be a great idea to post up the latest news from Google so here it is…

Dell Offers You $310000 – What Credit Crunch?

By Laura Northrup , 10:01 PM on Wed Jun 3 2009, 4069 views Travis is well aware that there's a credit crunch on. That's why he was surprised when, …  Read More…

Animal rescuers inundated in crunch

Colin Rennie The owners of a north-east animal rescue centre say financial pressures imposed by the credit crunch means they are only just keeping their …  Read More…

IMA reviews impact of credit crunch on authorised funds

With the credit crunch forcing many of us to be more financially disciplined, prepaid cards can be a useful budgeting tool too. …  Read More…
That’s all the news for today guys, so until next time, thanks for stopping by.

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We’ve all heard the term Credit Crunch all over the news and media recently, but what does it actually mean and how will it affect you? In basic terms, the Credit Crunch is where there is a sudden reduction in the availability of Credit and loans and / or a tightening of conditions and lending criteria that is required to lend money from Banks and Financial Institutions. In a Nutshell, Banks either don’t have enough money to lend or don’t want to lend it due to high risks involved or to try to build back up their reserves.

How does it affect me at Home?

For a start, it’s going to be very difficult for you to borrow money for any reason. Interest paid on credit card purchases will go up as providers try to recoup losses. Getting a Mortgage will be difficult if not impossible as mortgage products have practically vanished from the market, with the ones left having very strict lending criteria. The good news is people with existing Tracker Mortgages will benefit as Central Banks reduce base lending rates to try to increase borrowing meaning less monthly mortgage payments.

How does it affect me at Work?

The Credit Crunch affects both Employer and Employee. If you’re an employer you will likely be noticing a downturn in sales caused by customers trying to save their money or repaying debts instead of spending it. This will be coupled with pressure on profit margins from increased supplier costs and increased discounts you will have to give to entice customers. Trying to get or increase an overdraft will also be very difficult and if you are lucky enough to get one be prepared to pay extortionate interest rates as banks try to recoup losses.

As an Employee be prepared to wave good bye to bonuses, pay rises and job security for a while. Hopefully you won’t be one of the unlucky many who lose their job due to bankruptcy or redundancy as firms try to get themselves in the best position to survive the Credit Crisis. You might even be asked to take a pay cut or drop in hours to keep your job.

How does it affect my Personal Wealth?

It will affect your personal wealth in two ways. The first is the value of your property is likely to decrease as people stay away from house purchases due to lack of funds, mortgages or confidence causing prices to fall. If you have a high Loan-to-value ratio you may be in danger of slipping into negative equity which can prove very tricky if it’s time to remortgage or sell.

The second place you will be hit is through your savings. Interest rates paid out on savings will soon become non-existent as the base rate falls and Banks try to give you back as little as possible to help their earnings. If you rely on interest from your savings to live on it might be a good time to look at alternatives, equally your money could be at risk if your money is kept in a troubled bank or building society.

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Credit Crunch Takes Chunk Out Of Holiday Treats

More than a third of 1,500 people polled by online travel agency On the Beach planned to downgrade their hotel this year, while half said they would cut back on excursions, water sports and trips to theme parks.

Almost a third said they would take just one week away this summer instead of the traditional two-week break. Only one in 10 people said they planned to spend more time away this year than last.

The majority said they would be travelling beyond the Continent to non-European destinations, where the pound goes much further.

Cost conscious holidaymakers are booking cheaper hotels and planning fewer days out and activities to save cash, according to a new study

On the Beach chief executive Simon Cooper said: “The stress and pressure of the credit crunch, means that now more than ever we all need time out to relax and unwind and it’s great to see consumers are taking a sensible approach to holidays, spending what they can afford and carefully managing their budgets.

Holidaymakers can also save money on insurance by shopping around online. Insure with ease cover starts at just £10.28 for a family of four travelling to the Mediterranean for a week this summer – that’s comprehensive cover and complete peace of mind for less than the cost of a round of ice-creams.

By: Mark is writing in financial topics and have strong knowledge in all financial matters and points li

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Mark is writing in financial topics and have strong knowledge in all financial matters and issues like money and finance, loans life insurance and travel insurance etc. To read further articles please visit us.

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0800 Numbers: Helping To Beat The Credit Crunch.

One of the most significant things you can do when trying to attract prospective customers is to inspire confidence for them to contact you. A great way to do this is through using a free 0800 number.These free phone numbers can do wonders for your business.

Free phone numbers mean your business will pay for the cost of all calls, this may seem bizarre but paying for your customers calls can develop a substantial number of sales leads inevitably driving up your profits. These numbers can generate up to three times more business than conventional numbers therefore suggesting that such numbers are definitely worth the investment.

Using a 0800 number can also increase your advertising response by attracting new customers. A free phone number can act as an incentive for customers to call your business more often as it’s free for them to call. This helps to build a lasting relationship with your customers enabling you to develop customer loyalty.

Free 0800 numbers also convey a professional image. These free phone numbers can also give you a competitive edge in your market as when choosing your free phone number you can make it memorable, making it easier for customers to remember and choosing a free 0800 number that best suits your businesses services and products.

Free 0800 numbers are also a great way to improve sales and customer satisfaction. They are improve efficiency within your business, as they can control the way you handle your calls. It’s a simple and cost effective way improving your business.

By: Natasha Mazhar

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If you wish to increase your sales and customer satisfaction then free 0800 numbers are a great way to do it. 08 Direct is a specialist in providing UK based businesses with free 0800 numbers. For more information log onto: www.08direct.co.uk/0800_numbers.php

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Double entry bookkeeping is an accounting technique to record the financial transactions of a business where every transaction is entered twice, equal and opposite transactions. Double entry is required for all businesses that must produce both a profit and loss account and a balance sheet.

All limited companies are required to produce a statement of assets and liabilities and maintain a system of financial control and invariably need to adopt a system of double entry bookkeeping usually using an accounting software package.

The same rules may not necessarily to self employed business that does not require to produce both a profit and loss account and a statement of assets and liabilities as the final product of the financial accounting. In the UK a balance sheet is an optional requirement of self employed business.

There are advantages and disadvantages in preparing financial accounts using self employed bookkeeping. The main advantage being the simplicity with which accounts can be produced requiring a much lower knowledge of accounting systems. The main disadvantage of single entry bookkeeping is the absence of financial control due to limited detailed records of asset and liability accounts.

Preparing accounts using single entry bookkeeping involves recording the prime financial transactions once rather than twice. Prime financial records include sales income, purchase expenses and cash or bank transactions.

As the accounts do not require to produce a trial balance and balance sheet then when using self employed bookkeeping recording cash and bank transactions is not strictly necessary but highly recommended to provide additional financial control. While cash and bank transactions are movements of assets or liabilities and not part of the income and expenditure account accurate cash and bank records are useful since cash flow is a highly critical area for small business.

In the absence of a double entry bookkeeping system the small business has less control over the debits and credits of the business. That being the amounts owed for sales invoices from customers who are called debtors and the amount owed by the small business to suppliers who have supplied goods and services on credit and are called creditors.

What is required from commercially available single entry bookkeeping software is not just an accounts package that produces the profit and loss account but also has additional facilities to assist financial management and control of the business by providing optional areas for cash, bank, debtors and creditor accounts to be maintained.

Mismanagement of small business finances is a major area which can drive a small business into liquidation and bankruptcy. The first lesson an accountant might learn when studying accounting and financial control is that the business must always have sufficient cash or availability to cash resources to trade the next day. Bank records and maintaining a positive cash flow is important as without liquidity the business cannot trade..

In a similar vein control over debts owed to the company and owed by the company is also important for the smooth operation of a small business. Bad debts from clients can cripple a small business in fact high levels of bad debts can cripple any size of business as evidenced in recent times with the so called credit crunch. Lack of control over unpaid purchase invoices to creditors can result in serious disruption and higher costs since suppliers stop supplies and may charge recovery costs and relentlessly chase up the debs taking up valuable time.

The conclusion then is while single entry bookkeeping is a viable option anyone who adopts a self employed style of bookkeeping to simply produce a profit and loss account, or income and expenditure account should also have supplemental systems to control assets and liabilities. Bookkeeping software can produce a solution by adding additional financial control.

The advantage of using a single entry bookkeeping system involves the simplest form of keeping records of financial transactions. Essentially the small business makes two lists, one of income received and one of expenses incurred. Using single entry might involve virtual zero accounting or bookkeeping knowledge.

When recording the financial transactions in the two lists of income and expenditure a small amount of extra detail can have magnificent effects on the quality of records produced by grouping together items of a similar nature.

When entering sales invoices or income received to produce the sales turnover total a small amount of analysis can save much time and produce a more sophisticated result. For example the sales can be listed in one column to produce the overall sales turnover but also analysed to a small number of additional columns in which could be entered different types of sales income.

The additional columns might be for different types of product or sales from different sales channels, sources, or perhaps used to separate out interest received if tax differently to business sales income. Some analysis of purchases is usually essential as only the tiniest business would get away with lumping all purchases together as one total.

Single entry bookkeeping would involve making a list of all purchase invoices for goods and services. The analysis of those purchases then achieved by listing each invoice again in an analysis column according to the type of expense incurred. Bookkeeping software should include a simple expenditure analysis.

Having produced the list of sales and the list of expenses all the information is then available to produce an income and expenditure account. Enter the totals from the single entry bookkeeping sheets on a separate sheet with sales income at the top, a list of expenses under each purchase expenditure category. Take the total expenditure from the total sales and the result is the net taxable profit. Bookkeeping software should automate this process.

The financial accounts based upon a single entry bookkeeping are complete and a net taxable profit produced for the tax authority.

About The Author

Terry Cartwright a qualified accountant at DIY Accounting in the UK designs accounting software for limited companies at http://www.diyaccounting.co.uk/selfemployed.htm on excel spreadsheets using a double entry bookkeeping system http://www.diyaccounting.co.uk/bookkeeping.htm

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I’ve had some time to do some reading lately and I’ve managed to come across a few really interesting posts that I thought I’d let everyone know about. Check em out and let me know your thoughts on some of the topics they talked about within -

20 Hilarious Credit Crunch Jokes – Listverse

The credit crunch is hitting hard so why not take some time out to enjoy a bit of a laugh at the expense of all of those people who caused it! This is a selection of humorous jokes relating to finance and specifically the credit …  Read More…

Biz Poll: Credit Crunch – Business Opportunities Weblog

Blog entry about Biz Poll: Credit Crunch. … Biz Poll: Credit Crunch. June 1, 2009 by Rich Whittle | 0 Comments In Polls. Has your business been affected by credit card issuer Advanta's stopping new charges? …  Read More…

ChronicleLive – News – Today’s Chronicle – Police blitz set to …

CREDIT crunch crooks are being targeted in a new police campaign.  Read More…

Hope you enjoy the read as much as I did and please if you have something to say, use the comments form below to let everyone know your thoughts.

Have a great day!

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