Price of a haircut

I am sure that  you would have noticed that  new word has emerged as a buzzword. It is of course a “haircut”.


I am old enough to remember when a haircut was a short back & sides, enough to last for at least 6- 8 weeks. But a haircut now only lasts a few days in the financial world, before they all have to go again to discuss how to have another  hair cut!.  When a country cannot pay what is owes, it used to be called a default, but default is a naughty word and cannot be used, so they have come up with the word “haircut” which in laymans terms means the banks and lenders have to write off a percentage of what a country owes them, i.e. a default!


You may have also noticed that the Euro is in a spot of bother, France is saying how it saved the euro last Thursday, ( with help of course from Germany). But they never learn from history, doesn’t the phrase beware of Greeks baring gifts ring any alarm bells? You could see by simply watching what is happening in Athens to realise that a  just “haircut” was not going to save Greece.


They key fact to look out for is the price of Italian and Belgium bonds over the next few weeks. If the price of Italy’s bonds rise over 7.00%, I think that the game is up for the Euro, it will purely be a matter of an orderly default. ( note the word default, not a “haircut” !)


So there you have it in a nutshell,  the Euro problems are down to the cost of a haircut, it used to be two bob, but it appears to be very expensive now.


The other news is that the UK economy is growing, up to .5%, whilst German latest growth figures are.1%.I am aware they the figures are low, but to think we are ahead of the German powerhouse economy is not to be sniffed at! And on that note, I will simply say that Oak is funding more companies than ever before, from start ups, to company refinancing, to straight forward leasing. I will leave you with a post it note to keep on your desktop.

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3 Responses to Price of a haircut

  1. Warren says:

    You have got interesting articles here.

  2. Betty says:

    Hi, I read your blogs like every week. Your story-telling style is witty, keep up the
    good work!

  3. Frank says:

    Its fantastic as your other blog posts : D, thankyou for posting.

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