Crash Crash Crash !!!!!!!!!!!!!!!!!!!!!!!!!!!

sabretoothtigger

The relationship between the rating agencies (which have to be recognised i.e. authorised by the SEC) and the issuers of these debt instruments (as well as a whole host of other relationships) would be called corrupt were it to occur in any other industry.

http://www.pickledpolitics.com/archives/2388

sabretoothtigger

Falling Output

Credit losses and writedowns have reached almost $1 trillion at global financial companies, causing lending to businesses and consumers to dry up.

U.S. manufacturing shrank last month at the fastest pace since 1982, the Institute for Supply Management said yesterday, while production in Europe contracted the most since the tally began in 1998, according to Markit Economics.

The reports came after the China Federation of Logistics and Purchasing said the nation's manufacturing shrank the most on record.

Crude oil for January delivery sank 9.5 percent to $49.28 a barrel in New York yesterday, the lowest settlement since May 2005 and the biggest one-day drop since Oct. 10.

The sp500 fell 9%.

US Finance stocks fell 16%

Citigroup fell 22%

http://www.bloomberg.com/apps/news?pid=20601087&sid=avFmw4KHNY2E&refer=home

sabretoothtigger

This news is good for the majority on this board but this thread is market focused and I dont have any more relevant alternative on my recent threads so Im posting it here as a negative

Lenders are planning for a doomsday scenario if they have to pay back penalty fees to customers who have gone overdrawn. The hit could be £14bn, by one estimate.

That would be popular with consumers - but it would undo the state's efforts at resuscitating its banking system

Royal Bank of Scotland said it was preparing to “proactively” refund overdraft fees to customers pending the outcome of an ongoing legal challenge to banks’ charges, according to a leaked memo seen by the BBC.

The Office of Fair Trading accused seven banks and one building society of penalising customers who exceeded their agreed credit limits. The High Courts decided the charges could be reviewed for fairness – a decision the banks have appealed.

http://www.breakingviews.com/2008/12/03/UK%20banks.aspx?email

sabretoothtigger

The Government has begun considering contingency plans to nationalise the banking system if lending conditions do not improve soon.

http://www.telegraph.co.uk/finance/economics/interestrates/3564442/Banks-under-pressure-to-cut-borrowing-costs-after-rate-cut.html

Ian_Griffiths_Halifax

Royal Bank of Scotland said it was preparing to “proactively” refund overdraft fees to customers pending the outcome of an ongoing legal challenge to banks’ charges, according to a leaked memo seen by the BBC.

The Office of Fair Trading accused seven banks and one building society of penalising customers who exceeded their agreed credit limits. The High Courts decided the charges could be reviewed for fairness – a decision the banks have appealed.

It's payback time for the consumer.

If the poor banks look at it from the positive angle that the economy will be rescued by people spending their refunded charges, they'll only be licking their wounds for a short time.

sabretoothtigger

China has relied on exports to North America and Europe as its growth engine, making it acutely vulnerable to the contraction in global demand. Mr Pettis said this recalls the role played by the US in the 1920s, a parallel fraught with danger. "In the 1930s the US foolishly tried to dump capacity abroad, but the furious reaction of trading partners caused the strategy to misfire. China already seems to be in the process of engineering its own Smoot-Hawley," he said, referring to the infamous US Tariff Act in 1930.

http://www.telegraph.co.uk/finance/economics/3546471/Chinese-economy-1930s-beggar-thy-neighbour-fears-as-China-devalues.html

This would involve using the Ways and Means bank account at the Bank to buy government securities and would, in effect, amount to printing cash. In normal times such a move would be highly inflationary, but with the UK facing deflation next year such a plan is now thought to be valid.

http://www.telegraph.co.uk/finance/economics/interestrates/3551328/Bank-of-England-mulls-nuclear-option-of-cash-injection.htm

The credit markets continued to exhibit signs of extreme stress yesterday. The iTraxx Crossover index measuring default risk on low-grade European bonds punched above 950 for the first time. The investment grade index hit 188. The spreads are now flashing the sort of danger signals seen before the collapse of Lehman Brothers in September.
Each episode of the financial crisis over the last eighteen months has been preceded by a big jump in the iTraxx indexes.

http://www.telegraph.co.uk/finance/newsbysector/industry/mining/3543370/Metal-prices-fall-further-than-during-Great-Depression.html

Heyman_2

I am SO sick of the sight of this thread on the front page.

Sorry, but it started off as a godawful thread from blisk, and now it's turned into sabretooth's thesis on global economy meltdown.

It's the thread that just won't die! Everytime it goes off the first two pages, sabretooth comes back with yet another news item to resurrect the pain! :mad:

sabretoothtigger

I post in different threads, Im not biased to the downside but I figure this is a good place to post anything apocalyptic as it might affect your investment choices and the returns on them at least in the short term.

Dont you think the idea of BOE maybe buying government bonds deserves a mention somewhere.

The housing market rose and fell because of the market dabbling in credit in the extremes, its a fair bet it'll be effected by stuff like this eventually

neverdespairgirl

Heyman wrote: »

I am SO sick of the sight of this thread on the front page.

Sorry, but it started off as a godawful thread from blisk, and now it's turned into sabretooth's thesis on global economy meltdown.

It's a terrible thread. Factual, referenced, graphs, statistics, no aggression aimed at anyone else, I don't know how we stand it.

Heyman_2

neverdespairgirl wrote: »

It's a terrible thread. Factual, referenced, graphs, statistics, no aggression aimed at anyone else, I don't know how we stand it.

No aggression aimed at anyone else, because most of the time, it's only sabretooth actually posting anything!

Having said that, I can't argue with the content of sabretooth's postings - I mean it's certainly all good stuff. If it was in his own thread I don't think I'd mind so much, it's just everytime I see the thread title pop up on the front page it reminds me of the mind numbingly awful origins of this thread.

I don't know...I just felt the need to vent I suppose Apologies to sabretooth for the ranting!