Inter bank lending is a decoy

TRUSt_NO_1_2

The banks have lots of 'free' money,courtesy of us the tax payer (and the US tax payers) via the bail outs.
They are now waiting on the side lines,as markets all over the world are crashing.They know the markets are corrupt and some are effectively broken through naked shorts who have not delivered.
They can lend to each other.The UK government has even guaranteed inter bank loans.
They are not interested.They have bigger fish to fry.
Pension and hedge funds are going to be wiped out.
Western stock markets will be closed.
When they reopen they will move in and 'sweep' up.
I understand a similar strategy was undertaken in the 1929-1933 depression.
JPMorgan if I remember rightly cleaned up in the 20's.

agent_orange_2

Who are you blaming, the Jews.

Scrapper

TRUSt_NO_1 wrote: »

The banks have lots of 'free' money,courtesy of us the tax payer (and the US tax payers) via the bail outs.
They are now waiting on the side lines,as markets all over the world are crashing.They know the markets are corrupt and some are effectively broken through naked shorts who have not delivered.
They can lend to each other.The UK government has even guaranteed inter bank loans.
They are not interested.They have bigger fish to fry.
Pension and hedge funds are going to be wiped out.
Western stock markets will be closed.
When they reopen they will move in and 'sweep' up.
I understand a similar strategy was undertaken in the 1929-1933 depression.
JPMorgan if I remember rightly cleaned up in the 20's.

In the 1929 crash and in the early 1930s a lot of very rich people lost a lot of money. A few people made a lot of money by going short in a falling market. At one stage a group of bankers ostentatiously bought shares to shore up market confidence and for a short time it succeeded but in the end organised support failed to halt the downward slide. Many who thought they had stayed out of the worst of the slide with the intention of sweeping up at market lows bought in after the panic had died down only to find that share values continued a relentless downward slide and many of them were wiped out too.

After the 1929 crash many highly-leveraged investment trusts fell to around zero value - leverage is only great on the way up. Whether some of today's hedge funds will suffer similar fates time will tell. I'd be interested in the reasoning behind your view that pension funds are going to be wiped out though.

Even in 1929 Wall Street didn't close though it did have some short trading days to allow knackered traders to catch up with the administration and settlement of the extraordinarily high volumes of trades.

TRUSt_NO_1_2

Scrapper wrote: »

In the 1929 crash and in the early 1930s a lot of very rich people lost a lot of money. A few people made a lot of money by going short in a falling market. At one stage a group of bankers ostentatiously bought shares to shore up market confidence and for a short time it succeeded but in the end organised support failed to halt the downward slide. Many who thought they had stayed out of the worst of the slide with the intention of sweeping up at market lows bought in after the panic had died down only to find that share values continued a relentless downward slide and many of them were wiped out too.

After the 1929 crash many highly-leveraged investment trusts fell to around zero value - leverage is only great on the way up. Whether some of today's hedge funds will suffer similar fates time will tell. I'd be interested in the reasoning behind your view that pension funds are going to be wiped out though.

Even in 1929 Wall Street didn't close though it did have some short trading days to allow knackered traders to catch up with the administration and settlement of the extraordinarily high volumes of trades.

The privileged few eg JP Morgan,Bank of America,Barclays will clean up.
The rest (banks included,the real economy= non public sector companies and us..the plebs) are dog meat.

Then it starts all over again
Regulation this regulation that... blah blah blah.....

amcluesent

A good reminder every time you are tempted to buy in because 'a bottom' has been reached only to find it was another bear rally.

TRUSt_NO_1_2

agent_orange wrote: »

Who are you blaming, the Jews.

Don't bring religion into this.
I despise all forms of religion,whatever letter it begins with.
Religion is just an excuse for an argument/war (or a p155 up..the only plus)
(add Nationalism to that criteria)

You make me puke that you can think in that way.
Crawl back down the hole that is your mind.

My 'religion' (your word) does not have a name.
I care about people who care about others..wherever they live on this planet.

purch

JPMorgan if I remember rightly cleaned up in the 20's

He cleaned up in 1907 too.

In fact without Mr Morgan we might not have reached 1929 with a Stock Market to crash !!!

All this rubbish about Credit Crunch and InterBank Lending is just a smokescreen hiding the real problems.

The problems in our Economies goes far deeper than that, and won't be fixed just by getting Banks to lend again.

I'm not sure the Government really knows or understands what's going on......but then again, whats new about that ??

amcluesent

>They are not interested.They have bigger fish to fry.<

Maybe. They are also waiting until they see what happens on Tuesday when $300B of insured risk on Lehmans's defaults is due for payment. The toxic waste has seeped everywhere.

cogito

Maybe. They are also waiting until they see what happens on Tuesday when $300B of insured risk on Lehmans's defaults is due for payment

It's the net exposure that matters and the rumour is that it's 'only' $6bn.

TRUSt_NO_1_2

cogito wrote: »

It's the net exposure that matters and the rumour is that it's 'only' $6bn.

http://news.bbc.co.uk/1/hi/uk_politics/7674775.stm