Worst crisis for 20 years, say banks

Ivan_Konstantinov · 9 September 2007 at 12:58PM

looks like a fun week for NRK

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2412740.ece

baby_boomer · 9 September 2007 at 1:00PM

But a potentially good one for savers since the banks won't lend to each other and so will have to fight to get their money from us

.

EdInvestor · 9 September 2007 at 1:10PM

baby_boomer wrote: »

But a potentially good one for savers since the banks won't lend to each other and so will have to fight to get their money from us .

Indeed so, many reports on "savings wars" breaking out.

aardvaak · 9 September 2007 at 2:18PM

At long last some good news for us savers.

dunstonh · 9 September 2007 at 3:00PM

Although some savings rates are achieved by transactions on the money markets. You could see those ones lose out.

baby_boomer · 9 September 2007 at 5:33PM

And what does that mean in plain English?

[Deleted User] · 9 September 2007 at 5:44PM

Serves them right and lending money to people thats its obvious would know they cant pay back.

In future it should be made illegal for banks not to back their own loans on the fractional reserve ratio of 10:1. Now people have exited their vulture funds they have no choice but to back these idiotic loans/mortgages bonds themselves. It wouldnt surprise me if the stock crashes to 1/1000th of its present value when all the figures come out

PS I also wouldnt touch anything to do with property or other highly geared ventures as the banks will reap vengance3 on those that are actually paying their loans.

If I was into taking big risks for big rewards - which im not btw!, I would put a spread bet on the bankstock crashing out this week. But unfortunatly its whether investors realise how big this monster actually is, the banks have put out storys saying its only a tiny amount, but I dont believe them TBH. Its about as plausible as that the Barclays "the leafs fell on the track" meaning we had to borrow 1.6 bill story. But the stock actually went up (I suspect something fishy, you get me)

KingKenny · 9 September 2007 at 6:35PM

I agree, but along time ago, you would get;

If the base rate was 5% = x

For a normal saver a/c x + 0.75% or more

For a notice saver a/c x + 1% or more

For a tessa x + 1.25% or more

For a mortgage x + 2%

The good old days

They are coming to a town near you, cash is going to be KING again

Credit will be the toxic waste it used to be, NOT a value of what you are worth?

Its about time aswell, we will start to see house values at what they should be, not some dodgy muiltiple of a made up salary based on some cheap eastern credit available from some sweaty little financial adviser working in one of these so called finiancial institutions we now call banks?

thebyp · 9 September 2007 at 6:41PM

baby_boomer wrote: »

But a potentially good one for savers since the banks won't lend to each other and so will have to fight to get their money from us .

Only for low value savings. most mid-large value savings is linked in some way to the markets.

ashm1 · 9 September 2007 at 7:00PM

It's hard to know what to do in this situation because the BOE hasn't really said much.

When are the minutes out ?

thebyp · 9 September 2007 at 7:27PM

generally 10-15 days later.

Worst crisis for 20 years, say banks

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