Foreign Perspectives

Whilst moving from one European country to another is as easy, at least legally, as moving from one American state to another, it’s a whole different matter when you want to emmigrate to a completely different jurisdiction.

Aside from all the normal differences in taxes, social security and health systems that moving countries always entails, you add the complication of needing to apply for a visa, residence and work permits which adds considerably to the time that it requires to make the move as well as increasing uncertainty somewhat.

For example, take the relatively simple case of a British citizen wanting to move to Canada.

Canada is, of course, in the British Commonwealth so, in theory, that should make the move easier. However, even if you have a pretty much perfect points score for the move, it currently takes around four years from initial application through to the point where you have your Canadian visa and can actually move.

That’s a very long time and a great deal can change during it. For example, four years ago I had one son and now I have two. The second one would obviously need to be added to the visa application for a start and there’s the complication that he has even more nationalities than the first little guy.

Such a long lead time seriously complicates matters in other areas. For one thing, you’ll be working in your existing job and not know in advance how long. You may be wanting to move house too over that kind of time. It’s even possible that the visa categories which you’re eligible for could change too if, for example, you had an inheritance you might find that you could apply under one of the investment categories or perhaps you added a qualification (eg I picked up a university French diploma within the last four years which adds significant points to my Canadian application) or skills. The list is endless.

In fact, over that time period your life could change radically so you need to be really set on moving to a particular country if you’re talking of application periods running into years. Yes, of course, you should be that determined but over such a long period many things can crop up to change your mind even if you originally were really set on making that particular move.

And, remember, that’s just for a relatively simple move!

The events surrounding the slow death of the Northern Rock mortgage bank get more and more surrealistic by the day.

Back in July last year it was actually the leading mortgage lender in the UK with 19% of the entire market for new mortgages sold in the first half of the year. Bearing in mind that it’s basically a fairly small building society this should have been the first sign that trouble was ahead as it meant that to source the funds for those mortgages it had to move well outside it’s traditional deposit base and borrow on world markets to find the money.

Just two months after announcing these fantastic results we find that the bank needed to go to the Bank of England for emergency support which, of course, it was granted. The next day the troubles began in earnest for the bank as everyone tried to reassure the customers that everything was fine. Of course, it was far from being fine as the large queues of depositors asking for their money bank well knew on hearing this announcement. On September 17th, just three days later the government moved in to guarantee the deposits held by the bank, subsequently extended on October 9th to include all deposits made regardless of the date.

Moving on to today we find that the government has provided some £25 billion (around £1000 from every family in the country) to support the bank and here’s where the magical world of finance really kicks in.

Although the bank seems to have enough security to repay all of it’s debts, to repay everyone would entail calling in the mortgages on an awful lot of people which obviously wouldn’t go down too well and might not even be possible legally for those that have been keeping up their repayments. Of course this is the same situation for all banks: if everyone wanted their money back at the same time there just wouldn’t be enough on hand. Therefore, in a sense, it makes sense for the government to provide backing to avoid repossessions on a wide scale and to provide confidence in the banking system in general.

However, the government clearly need the money back at some point unless they want to nationalise the bank.

The snag is that there is really no way for them to actually get the money back. So, what they’re doing instead is proposing selling bonds to the value of that £25 billion. The problem with that is that nobody wants to buy bonds from a bankrupt bank and therefore the government will have to provide the security for the bonds too which means that they won’t be clear of that £25 billion for some years, if ever (some similar bonds issued for the first world war still haven’t been repaid!).

And, of course, this is just one bank. Granted, a bank that over-extended itself but who’s to say that there aren’t a few other banks around in a similar situation or who could find themselves in such a situation if the current squeeze on credit worldwide continues?

As it’s the third Monday in January today, it’s Martin Luther Day.

Well, more or less, as America is, as we all know, a country that’s built from a whole bunch of separate countries (ie states) and therefore it doesn’t have a standard name in all 50 states and indeed wasn’t a holiday in them all until 2000.

Although it doesn’t really mean anything outside America, it does have a knock-on effect worldwide in that various Internet outfits close down since they’re based in America. In fact, we didn’t even know that it was a holiday ’til we started wondering why there were so few sponsored posts available today.

Not that we’re complaining as it would appear a lot of folk doing sponsored posts have also taken the day off so we’ve picked up several juicy ones whilst they’ve been away.

One of the more interesting things that came up when I was in discussions about buying a commercial holiday accommodation listings site a year or so ago was the level of turnover in the properties listed on it.

Would you believe that the renewal rate of property listings is around 50-70%? Think about it: that means that there is pretty much a complete change in content of the listings sites every two or three years.

The turnover is presumably at the higher end of the range of the scale for smaller sites (say around 500 entries) but even then that means that they need to attract around 250 new entries per year merely to replace those that don’t renew which in turn means around 25, 000 e-mails to do that for the small sites (assuming a 1% return on marketing). For a large country-specific site (say around 2000 entries), the dropout % is lower but the absolute number of dropouts is higher at around 700 thus requiring something like 70,000 e-mails (assuming a 1% return on marketing).

Those stats are particularly interesting to me in that my own dropout rate is made up of those getting out of the business and is therefore somewhat lower at around 1%. This in turn means that, slowly but surely, I will become one of the larger listings sites. I’ve already caught up with the scale of that listings site that I was going to buy and hope to finish the year with around twice the number that they had when I was looking at them.

With that extra scale comes extra hits on the site and I’ve needed to upgrade the hosting package I use three times since Christmas as a consequence of that jump in size since Christmas a year ago. This, of course, means extra bookings for all those listed on the sites too.

We’ve been without TV since December 31st when the satellite decided to down tools.

It’s not that we’ve not been trying to get it sorted but, until this evening, all our efforts were in vain. We changed the satellite dish from our trusty 80cm to a 95cm, we changed the LNB to a nice new one instead of our very weather beaten four year old one, we changed the coaxial cable and we even changed the satellite decoder. And nothing.

So we thought we’d go back to first principles late this afternoon. Within 30 minutes of going back to our old dish and old LNB we started picking up TV channels. OK, we’re not getting the right satellite just yet but we should have that sorted in fairly short order tomorrow.

However, we do need to source a new Sky box as the old one ain’t working anymore so, for the moment, we’re limited to non-subscription channels.