The Quickie

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Posts Tagged ‘credit crunch’

Is university a credit crunch haven? Continued

Posted by allie1985 on October 29, 2008

While the whole country seems to be in a financial meltdown, some of the Students at Westminster University are still living the high life.

Why are they not affected?

 A few students have made no changes to their spending whatsoever, although it might be because they have jobs as well as loans to fund them.

 Students

 

Sophie Spurgon who is a 1st year studying for a BA Digital Imaging and receives a full loan of £6,475. She mainly uses her loan to pay for Driving Lessons; the rest is put into savings.

“The credit crunch hasn’t affected me at all, although working definitely helps me financially”. Sophie works in a Camera store and lives on campus. She spends her extra money on going out, and designer clothes. She has no plans to cut back.

2nd year, Cameron Tariq is studying computer science and  has a similar point of view “I haven’t been affect by the credit crunch as I don’t spend much anyway”.

He mainly spends money on “boying up” his car, and smoking. He thinks he has so much money because he does not drink.

Cameron works one day a week in Homebase and reckons “the extra £100 a month really helps”.

 

Spending

What students say about their spending seems to be confirmed by the university Upper Crust sandwich bar. According to Mary who works there, “Students always spend whether they have money or not. I have not noticed a difference in sales at all over the three years I’ve been here”.

Eileen Shredd, the Student Union Shop Manager says much the same thing. She admits that prices has recently gone up due to suppliers increasing their prices but says, “If anything, we are doing better than before”.

According to Eileen, more students are coming to she shop since the canteen has also increased its prices. In the shop a bottle of coke is 95p whereas in the Canteen it costs £1. The shop also sells water for 50p whereas it also costs a pound in the canteen.

 Not everyone is happy

 

One student, Aaron Dixon, does feel affected by the credit crunch. He is a 2nd year photography student and unlike the other lives off campus in Kenton Road.Like Cameron and Sophie, he receives a full loan. He also works 3 days a week in a swanky hat shop called New Era. Aaron spends most of his money on rent, clothes and food.

“Certain things like bread, milk and eggs have really gone up. They are more expensive than usual. I really just try to buy what’s on offer”

Aaron has also started going out much less, “Clubs are just charging excessive prices and drinks have gone up lots”. It seems that having to pay for food, bills and travel really affects the student lifestyle.

The key to having an easy ride in the credit crunch is as follows- be an eternal student, but make sure you live on campus and have a loan.

Other articles on Students facing the credit crunch

Get Graduate warning

NUS warns students

 Alexandra Murphy

(alexandra.murphy@my.westminster.ac.uk)

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12.00 update…

Posted by willd2 on October 29, 2008

Below is a list of the stories that will be covered in The Quickies first ever live ‘Harrow Special Feature’:

  • Is snow to blame?
  • The long road to an easy degree?
  • Abandoned abroad?
  • Is university campus a credit crunch haven?
  • Does Wesminster University need Jamie Oliver’s help?
  • Expressing yourself, or out of control? Fashion at Westminster University.

We will be bringing you more news as we receive  it. TQ x

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Is university campus a credit crunch haven?

Posted by allie1985 on October 29, 2008

While the whole country seems to be in financial meltdown, the Students of Westminster University are still living the high life.

Why are they not affected?

The majority of students have made no changes to their spending whatsoever, although it seems to be because they have jobs as well as loans to fund them.

 

 

 

Top 5 Student Splurges

  • Alcohol
  • Clothes/Shoes
  • Takeaways
  • Renting DVDs
  • Petrol

 

by A. Murphy

alexandra.murphy@my.westminster.ac.uk

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Flying Fuel Prices

Posted by 19sevenseven on October 20, 2008

We can’t escape it. The words ‘credit-crunch’, which have just entered the English dictionary, are being projected out of every television show and newspaper to do with consumer affairs. Flying and holidays are seen as a modern day luxury, and in the time of crunch, luxuries go. The airline industry has had its fair share of credit crunch related issues too. Some have gone out of business, many have cut capacity and allegedly one airline has even removed sugar sachets from meal-trays in a bid to stem costs.

Blame the US

The credit crunch first hit the US in late 2007, when over greedy mortgage lenders’ customers started to feel the pinch. Excessive loans were given to people who wouldn’t normally be offered them. These factors alongside the rising cost of living, through higher fuel and grocery bills, meant some struggled to pay the mortgages at all, which meant foreclosures.

Winds of Change

Soon after, the economic rumblings started to blow across the Atlantic. In the UK, first-time buyers were given easy access to cash by lenders to get on the property ladder.  In February 2008, the UK government saved troubled mortgage lender Northern Rock by privatising it. Northern Rock had fed its incredible growth by relying on world markets to borrow most of the cash it loaned for mortgages.

Stretched and Squeezed

It isn’t just the financial institutions that are being stretched; other industries are starting to feel it too. The airline world, which is well known for its cyclical highs and lows, is looking for its closest emergency exit, by cutting routes, slashing capacity, and laying off staff the world’s airlines are attempting to stave of the financial pinch.  Some airlines have already crashed landed economically, such as XL, Maxjet, Eos, Oasis Hong Kong, and Silverjet.

Even the Big Ones are Shrinking

In the US, Continental Airlines has cut 3,000 jobs, 6.5 percent of its total work force and reduced its flying capacity by 11 percent. 67 planes in Continental’s fleet are off to the desert for retirement. 100 of United’s fleet are facing the same fate with an 18% cut in domestic services, and a 5 % cut in their international services.  4,000 employees of Delta has offered voluntary redundancy, while over at Northwest, 2,500 frontline and management staff will be cut.

Huge Losses Predicted

British Airways is forecasting a major drop in in its profits. The airline recently announced a cut in capacity by 6.4% with the suspension of flights to Calcutta and Dhaka, a recruitment freeze, and a £100 million cut in capital expenditure.  In Europe, both Air France-KLM, and Iberia have reported a drop in profits. Air-France-KLM have said that their first quarter profits have fallen by 59%, Lufthansa, and Austrian Airlines have also issued profit warnings.

Slow it Down

Several US arilines have their pilots to fly more slowly to save on cash. BMI has said its reduced its flying speeds by 3 mph, and Air New Zealand, Air Canada, Brussels Airlines have announced similar moves.

Higher and Higher

The last year has been marred with outlandishly high fuel prices. The reactions by airlines around the world have shown that these high prices can not be sustained with out cutting back in capacity, on staff, or by increasing ticket prices.  A number of factors have forced up the price of oil. The equation works like this. The amount of oil being produced does not match supply; oil refineries are limited in numbers; countries such as India and China have seen a surge in demand as they modernise; oil is traded speculatively for financial gain, which pushes prices up artificially; these factors combined with the fact that environmentally friendly oil refining is expensive, and costs time and money, its understandable how the cost of fuel has skyrocketed. 

How and when this financial crisis will end is yet to be seen.  All people, businesses, and airlines can do is cut back as they see fit, save capital, and know what to do in an unplanned financial emergency.

For further information on this topic, please click here. (Background article)

By Quinn Gormley

quinngormley@yahoo.co.uk

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