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Lehmans
Comments
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It's not all bad. You can't just have banks getting away with their irresponsible lending for so many years and then getting saved at the last minute with taxpayers cash. There has to be moral hazard. Okay so we''ll all 'suffer' in some way. But some more so than others like the City fat cats.
The bright side is it'll bring house prices down even further. :T And this is the House Prices forum after all.
Good for you - always look on the bright side. I guess you've been listening to our resident bulls and taken on board their advice to find more to be positive about
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Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
Does the money to bail out Lehmans have to come from traditional sources .
Maybe we should be looking further afield .0 -
Does the money to bail out Lehmans have to come from traditional sources .
Maybe we should be looking further afield .
I, for one, welcome our new Chinese overlords.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
I think the Americans would prefer them to Venezuelan or Iranian Overlords0
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Why would that be? Presumably most supermarkets have 24 hours worth of food on their shelves.
I can see that if diesel supplies fail but not banks.
Umm, who will turn up at the supermarkets' warehouses with new supplies of food if they can't get paid? Why would the supermarkets open up shop if they can't get paid? Who will go and work for them if they can't get paid?
Who'll provide electricity to power the pumps that pump the diesel into the tanks of the trucks that bring the food to the supermarkets that aren't open? It sounds like a nursery rhyme, but it's the stuff of nightmares. You may be right, and food riots only start 72 hours after the banks fail.No reliance should be placed on the above! Absolutely none, do you hear?0 -
I think the Americans would prefer them to Venezuelan or Iranian Overlords
Oh - you mean time for a quick war?
That was supposed to be after McCain and the Redneck Alaskan woman won the election.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
No I don't think there will be a war .
The present American war is costing them more than they imagined.
I can see pretty large chunks of America either being sold off or closing down and market share being taken by new players .
Lots of talk of airlines struggling ...And yet Emirates is on a shopping spree.
Maybe more stories like this and people will notice a trend .0 -
Umm, who will turn up at the supermarkets' warehouses with new supplies of food if they can't get paid? Why would the supermarkets open up shop if they can't get paid? Who will go and work for them if they can't get paid?
Who'll provide electricity to power the pumps that pump the diesel into the tanks of the trucks that bring the food to the supermarkets that aren't open? It sounds like a nursery rhyme, but it's the stuff of nightmares. You may be right, and food riots only start 72 hours after the banks fail.
I don't understand your point. Do you mean that the banks fail as in become insolvent or do you mean some sort of destruction of the banking system meaning that payments can't be made between accounts?0 -
I don't understand your point. Do you mean that the banks fail as in become insolvent or do you mean some sort of destruction of the banking system meaning that payments can't be made between accounts?
The latter, but that surely follows from the former. My point is really that the banks cannot be allowed to go insolvent en masse. One or two is maybe not such a big deal, but you saw what happened with Northern Rock. The large banks are very interlinked, so I couldn't see Barclays surviving if HBOS failed, or vice versa. I don't think it's far-fetched to say that a failure of the clearing banks in this country would lead to food riots and martial law being imposed. The obvious thing to do, to avoid that, is simply to declare the banks solvent.
I don't think you can make a distinction between banks becoming insolvent and the payments system breaking down. Say I bank at Barclays, which is insolvent. I turn up at your supermarket and present my Barclays debit card. You accept the transaction, give me my food, and you now are owed money by an insolvent bank. Wouldn't you just rather hang onto the food?
Lehmans is really rather big to be allowed to go under. Of course, it's chapter 11/ administration, but it's all quite worrying, and you have to wonder which are the next dominos to fall.No reliance should be placed on the above! Absolutely none, do you hear?0 -
The latter, but that surely follows from the former. My point is really that the banks cannot be allowed to go insolvent en masse. One or two is maybe not such a big deal, but you saw what happened with Northern Rock. The large banks are very interlinked, so I couldn't see Barclays surviving if HBOS failed, or vice versa. I don't think it's far-fetched to say that a failure of the clearing banks in this country would lead to food riots and martial law being imposed. The obvious thing to do, to avoid that, is simply to declare the banks solvent.
I don't think you can make a distinction between banks becoming insolvent and the payments system breaking down. Say I bank at Barclays, which is insolvent. I turn up at your supermarket and present my Barclays debit card. You accept the transaction, give me my food, and you now are owed money by an insolvent bank. Wouldn't you just rather hang onto the food?
Lehmans is really rather big to be allowed to go under. Of course, it's chapter 11/ administration, but it's all quite worrying, and you have to wonder which are the next dominos to fall.
The world is far bigger than America ....It is even bigger than the US and UK together ..These institutions are still extremely valuable ,in fact for some new players these are the very institutions they want ...And to be able to get them cheap would in my opinion be iresistable0
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