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Financial Times: Banks not to be trusted.
WTF?_2
Posts: 4,592 Forumite
http://www.ft.com/cms/s/0/dec5d55a-8b2a-11dd-b634-0000779fd18c.html
No doubt about it - the orgy of greed and stupidity (from lenders and borrowers) has ended with the system teetering on the brink.
The scariest thing is that we haven't even felt anything more than the first faint waves of the hurricane of the fierce recession that is heading our way. Once the economy actually starts plunging then all bets are off.
Banks are not to be trusted. This is not just the view of the public and policymakers, but that of the banks themselves. Spreads on unsecured inter-bank lending have reached unprecedented levels, particularly in dollars and, to a lesser degree, sterling. Such stresses cannot continue for long, without serious damage to both the financial system and the economy. Something has to be done. The question is: what?
No doubt about it - the orgy of greed and stupidity (from lenders and borrowers) has ended with the system teetering on the brink.
The scariest thing is that we haven't even felt anything more than the first faint waves of the hurricane of the fierce recession that is heading our way. Once the economy actually starts plunging then all bets are off.
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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.
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.
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Comments
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http://www.ft.com/cms/s/0/dec5d55a-8b2a-11dd-b634-0000779fd18c.html
No doubt about it - the orgy of greed and stupidity (from lenders and borrowers) has ended with the system teetering on the brink.
The scariest thing is that we haven't even felt anything more than the first faint waves of the hurricane of the fierce recession that is heading our way. Once the economy actually starts plunging then all bets are off.
Stop whinging. You wanted a house price crash - you have it. Many people on this site including myself tried to explain to a lot of folks that just wishing for a crash was short sighted and the consequences over the whole economy would be far to predict. You got what you wished for, now put up with it.0 -
Stop whinging. You wanted a house price crash - you have it. Many people on this site including myself tried to explain to a lot of folks that just wishing for a crash was short sighted and the consequences over the whole economy would be far to predict. You got what you wished for, now put up with it.
So you mean *I* caused this by seeing some time back that house prices were going to drop (along with an economic crash) and warning other people on MSE about it :rolleyes:
Maybe I should phone up the leaders of the Western countries and apologise :rotfl:Do you think they'll make me pay the bill for all the bailouts? :eek:--
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 -
It just shows how ridiculous, unscrupulous and untenable the capitalist system has become when 'hoping for house prices to come down to affordable levels' means the same as wanting the entire economic system to collapse!!!
The last HPC did not mean the end of the West as we know it. It was a readjustment.
As much as it will make many people suffer greatly, the best thing that can happen is what is happening. The society we live in has become disgraceful. I'm only very young but I yearn for days where people didn't care more about designer labels and laminate floors than they do about the welfare of children and families. Marx was totally right, capitalism is inhuman.
I'm far from religeous but I do recall the story of Sodhom and Gommhorra (spelling, I know!) very well.I'll have some cheese please, bob.0 -
Stop whinging. You wanted a house price crash - you have it. Many people on this site including myself tried to explain to a lot of folks that just wishing for a crash was short sighted and the consequences over the whole economy would be far to predict. You got what you wished for, now put up with it.
Previous house-price "corrections" and "crashes" were able to happen without banks being nationalised or the phrase "worse than since the Great Depression" being bandied about.
The whole economy is at risk due to the state the financial institutions go themselves into. They constructed the bubble, without knowing how they would support it as it deflated.
Nothing to do with those who predicted, and want, a return to realistic house price levels.0 -
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When I started reading the forum it was obvious to me that !!!!!! had the knowledge and the power to move markets. So I studied and learnt, and when the time was right I moved all my assets from China Piggy into gold, a real gold rolex to be precise - £6.99 on the market. Now I'm sitting pretty.Stop whinging. You wanted a house price crash - you have it. Many people on this site including myself tried to explain to a lot of folks that just wishing for a crash was short sighted and the consequences over the whole economy would be far to predict. You got what you wished for, now put up with it.0 -
I'm far from religeous but I do recall the story of Sodhom and Gommhorra (spelling, I know!) very well.
Soddom is now a rather elderly holiday resort for mostly retired Israelis. OH's grandparents used to go there yearly. Rather than Bournemouth or Christchurch....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0 -
neverdespairgirl wrote: »Soddom is now a rather elderly holiday resort for mostly retired Israelis. OH's grandparents used to go there yearly. Rather than Bournemouth or Christchurch.
"Are your parents going to Bournemouth on holiday?"
"No, Soddom"
"Well, I only asked............."
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>Once the economy actually starts plunging then all bets are off.<
The message from the Mexican, Turkish, Argentinian, Russian, East Asian, etc. financial crisis from the last 20 years is that a decline of at least 10% in GDP in 2009 is highly likely. All their crashes were predicated on trade deficits, floods of easy money and banks handing the stuff out like sweeties. Sounds familiar!
The recession will be noticeably worse than 1991/1992, we won't see any return of house price increase until 2012.0 -
amcluesent wrote: »>Once the economy actually starts plunging then all bets are off.<
The recession will be noticeably worse than 1991/1992, we won't see any return of house price increase until 2012.
I sincerely hope we don't see any return of HPI at all. Homes should be looked on they were in the past, as homes, not as investments.
This country needs to find other ways of making money – perhaps through investments in British manufacturing in the hope of making this island more self-reliant. :cool:0
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