?? Big bank collapse

greco_2

EdInvestor wrote: »

I fear we will soon find that many of the BSs are in even worse shape than the banks.

Why would you think so?

purch

I think rising inflation will prevent prices crashing as hard as so many people predict

House Prices have fallen before during periods of elevated inflation, so I don't see why this period should be any different.

RayWolfe

The inflation rate of consumables bears no relationship to assets. Otherwise we would not have had the housing bubble during a period of benign inflation!

I,_Brian

If a largish US bank collapses, I think the biggest impact in the UK will be investor fear at owning UK bank shares - in which case, jump in and buy once the hysteria hits and sinks the prices.

In the meantime, it's not the big US banks that look most likely to collapse anytime soon as much as Freddie Mac and Fannae Mae, which have a lot of fear centered over their potential nationalisation by the US Treasury. If that happens, investors will flee financial stocks.

2c.

sabretoothtigger

vbrindle wrote: »

I think rising inflation will prevent prices crashing as hard as so many people predict.

http://www.youtube.com/watch?v=WKDpEel5dcs

[Deleted User]

Yep the governments are inflating out of the crisis.

greco_2

EdInvestor wrote: »

I fear we will soon find that many of the BSs are in even worse shape than the banks.

Third time of asking.

simon-dupree

I hope your right about building societies .I wonder that if mortgage sales are at there lowest rate for years and don't look like improving where is the money going to come from to finance all the overheads of the building society shops,offices and staff?

I notice some are pushing the financial advice side of their business to make comission but are ordinary people with limited savings ready to be pushed into equities in large volumes at this stage in the economic cycle?

I,_Brian

Building societies have far stricter rules on how they can lend - I think it's something like 50% must be from deposits.

So BS's were far more restricted on how they could lend through the credit boom, but it's kept them in generally better shape because of it, and that's why some of them are very aggressively chasing mortgages now, not least with potential cross sell on other products.

Hope that helps.

sabretoothtigger

A bs wont have any of that sub prime american 'toxic' debt afaik