Financial Betting Articles

Every financial crisis has winners and losers. The credit crisis has taken its toll across the banking sector in particular, but many financial bettors have seen a good return out of the recent market volatility. Of course the biggest loser in the UK has been Northern Rock - and thanks to the government, every man, woman and child in the country has had to share the pain.

By the end of the year the government's emergency funding is estimated to have reached £24 billion. That is £400 for everyone in the UK - or £900 for every tax payer. I'd rather have the cash up front thanks very much. What the government decides to do will determine whether the nation will see that money again. There are a list of suitors (including Richard Branson's Virgin - publicity stunt anyone?) lined up but they all want to get control of the bank at a knock-down price. The government does not want to be left holding the baby and is keen to get the Rock out of public hands ASAP. That could mean sale to an asset stripping private equity firm for peanuts or even allowing the bank to go in to receivership.

Elsewhere, doom and gloom continues to reign supreme, with the Bank of England painting a bleak picture of the state of the UK economy in 2008. The BoE forecasts a sharp slowdown in the UK economy as the credit crisis spills over to affect the housing and stock markets. With both taking a tumble, households start to feel less wealthy and are a bit more cautious when it comes to spending their pennies. Worse still, rampant energy inflation and a rapidly devaluing pound are set to keep inflationary pressure high. The upshot is that the MPC are going to be tossed on the horns of 'stag-flation' and whatever happens there are likely to be some broken bones along the way.

And while the value of your house shrinks and your stock portfolio shrivels, you might want to don some bicycle clips as oil prices soar yet higher. Those nice fellows at OPEC have decided that while they could increase oil production, they won't and they'll happily see the price per barrel top $100. For my money you can keep your information super-highway and your mobile phones - I for one long for the days when I could fill up the Morris Cambridge for two bob and a boiled sweet.

Final word goes to a quite simply magic market - the DAX, up 15.4% on the year to date. This index, my favourite, has ridden out the financial maelstrom with spectacular aplomb. So let's lift a Stein to our liederhosen clad Teutonic brethren and their magnificent(ly boring) little market. Still, there's much more action to be had - visit ChoiceOdds.com to take a view that could win you a few.

Last week the DAX fell 0.5%, FTSE fell 3.5%, and the DOW fell 4.1%.

The Pound traded above $2.11 last week for the first time since the early 80s.

Since 17th October the DOW has lost 7.6% of its value.

Half of the world's pigs are in China.

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