Credit crisis: Doomed, I tell ye, doomed.......

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Satch

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"We're not just going to see mid-sized banks go under in the next few months, we're going to see a whopper, we're going to see a big one, one of the big investment banks or big banks."

"The financial system has become very bloated in size and needed to shrink."


http://news.bbc.co.uk/2/hi/business/7569903.stm

That really put me off my lunch and sadly he is very probably right. Too many fairy stories been passed off as financial accounts for too long now and fiscal Darwinism must soon be at work.

Good job our Government stands firmly behind Northern Wreck. Oh hang on........
 
You missed some vital words.

with a large US bank likely to collapse
 
Not quite. They got bailed out by the Fed.
 
It will still affect us, badly.

Oh yes. If a big one goes down these does not really matter where it is based.

Others willl be badly impacted so the danger is that of a trigger event for vast asset write downs and other consequential failures across the financial markets.

People used to talk about some banks being in the Too Big To Fail catagory. As the Northern Wreck fiasco has clearly shown, a lot of them are now very clearly in the Too Big To Bail camp.
 
The outgoing chairman of the FSA said it all back in June.

The remuneration policies of top banks and funds have come under close scrutiny in the aftermath of the credit crunch, with many regulators and politicians blaming bonus policies for encouraging the excess risk that ultimately caused the crisis.------- quote--
"The present bonus system places excessive emphasis on the short-term performance of individual parts of an organisation," the FSA's outgoing chairman, Callum McCarthy, said in a speech.
"It encourages the taking of trading positions whose immediate profitability is rewarded, but whose accompanying risk is neither properly recognised, nor disincentivised." ---"I think it entirely appropriate for supervisors, ( i.e. the FSA) as part of our general assessment of systems and controls, to be interested in compensation and incentive structures."
The FSA said at the end of last year that Britain's banks needed to carry out tougher tests to ensure they can withstand liquidity shocks, including testing the possible strains from off-balance sheet vehicles like conduits.---------
Liquidity -- or lack of it -- is typically the cause of bank failures and liquidity risk has been a major concern for all regulators since the start of the global credit crunch. It has been a priority for the FSA, under fire over its role in the near-collapse of mortgage bank Northern Rock.

There is only one group of people to blame for the financial crisis we are in and that's the Bank's themselves. A bunch of overpaid executives taking undue risks with other peoples' money while awarding themselves huge bonuses while they do so. When it all goes pear shaped surprise surprise there's no money left in the bank! Funny I thought having "money in the bank" was the governing principle of banking but maybe I'm just old fashioned.
 
its not just the execs... my old work buddies have just all got their 6 figure bonuses... thats on top of their six figure salaries..
 
For some, their days are numbered.
A friend of mine who was once a leading light in a certain building society is now a self employed gardener earning around £8 and hour - when he has work.
A neighbour who once worked in the City for some French bank had to up sticks and move to Sheffield because they couldnt afford to live in London once he was dispensed with.
Most companies who only deal in finance and dont actually do anything other than shift money around is going to find it tough going for the foreseeable future.
An estate agent actually shut up shop in Orpington High Street a few weeks ago. Never seen that happen before.
 
An estate agent actually shut up shop in Orpington High Street a few weeks ago. Never seen that happen before.

So it's not all bad news then.
 
New car sales 2008.

* July new car market down by 13% in July and 3% year-to-date.

* Diesel registrations up 7.3% over the year-to-date and take 43.1% of the market.

* Demand for alternatively fuelled vehicles up 19.4% in July to 1,479 units.

MINI sales figures July 2008.
MARQUE 2008... %market share... 2007... %market share... % Change

MINI..... 2,522.......1.64............ 3,336...... 1.89............ -24.40
 
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I fear, my kind friends, much worse is on the way. Things are being cellotaped and baling-wired to make it to the election here, in November. And, we have no one running for President (not that we're any better-off now). With the two shadow-puppets up for election (others are running, but they won't be considered), I fully expect more terrorism here by June.
I don't even want to consider the reaction by the next Administration.
 
I fear, my kind friends, much worse is on the way. Things are being cellotaped and baling-wired to make it to the election here, in November. And, we have no one running for President (not that we're any better-off now). With the two shadow-puppets up for election (others are running, but they won't be considered), I fully expect more terrorism here by June.
I don't even want to consider the reaction by the next Administration.

Careful there Defiant old boy , you sound practically English. ;)

Much as I'd like to see the greedy corporations suffer, its not in anyone's interest. Surely even terrorists will be feeling the pinch with inflation and the cost of fuel :D

Ade
 
I fear, my kind friends, much worse is on the way. Things are being cellotaped and baling-wired to make it to the election here, in November. And, we have no one running for President (not that we're any better-off now). With the two shadow-puppets up for election (others are running, but they won't be considered), I fully expect more terrorism here by June.
I don't even want to consider the reaction by the next Administration.

Oops, you used the 't' word. Expect a visit from the FBI, CIA or whoever and be afraid! :devil:
 
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