Brace yourself for Credit Crunch II

StevieJ

LeeSouthEast wrote: »

lmao. Definitely won't be in need of a banker, thank you very much! A gardener would be useful (lots of lovely home grown food).

I'm struggling to think of a need for a housekeeper. Gamekeeper perhaps?

Who are you Lady Chatterley

LeeSouthEast

Snooze wrote: »

I don't think you're gonna make it !!

R

On the contrary, my dear R. I have a plan

Cleaver

mvengemvenge wrote: »

Brace yourself for Credit Crunch II

Oh dear lord. Does this mean a return of Robert Peston?

CLAPTON

So lets see

US/UK Private Equity Companies bought lots of companies and pursuaded people/banks to fund them (i.e lend them money)

and those debts will cause those companies to go bankrupt even though the companies are fundamentally profitable.

bad luck on the idiots that bought into those companies

and presumably the underlining busines will be sold off to the highest bidder and the companies will continue and no-one will lose their jobs.


is this a problem?

seems like capitalism to me

kabayiri

The article was thought provoking, but I wasn't sure on its validity.

So I phoned up a fellow Manc who used to work for one of these private equity crowd.

Yep, Chris Ronaldo, says its definitely true. He felt the squeeze on his wages. One of his mates told him he was practically a slave, so he had no choice but to !!!!!! off to Spain.

Generali

CLAPTON wrote: »

So lets see

US/UK Private Equity Companies bought lots of companies and pursuaded people/banks to fund them (i.e lend them money)

and those debts will cause those companies to go bankrupt even though the companies are fundamentally profitable.

bad luck on the idiots that bought into those companies

and presumably the underlining busines will be sold off to the highest bidder and the companies will continue and no-one will lose their jobs.


is this a problem?

seems like capitalism to me

Isn't that what causes economic problems though? Companies go bust so their suppliers go bust. In the end, the productive capacity gets used again so it's only a short term problem but the short term pain can be quite severe.

Pagg

Sounds like Leeds United. Oops, before cuddly Ken sends the boys after me armed with legal bits of paper, that was "Leeds Origami Productions United", the famous paper-folding enterprise that was bought out by a shyster who loaded it with debt then defaulted on it, leaving creditors going bust in their wake.

Lotus-eater

LeeSouthEast wrote: »

I'm struggling to think of a need for a housekeeper.

If you're living by yourself in the middle of no where, I can think of a few

I'm sure Pastures wouldn't mind "extra" duties

purch

bad luck on the idiots that bought into those companies

and presumably the underlining busines will be sold off to the highest bidder and the companies will continue and no-one will lose their jobs.


is this a problem?

Not necessarily, but there is bound to be some collateral damage, and the important question will be, is the economy as a whole and the Banking system able to withstand further damage?

In the past, maybe relatively easily, but 2009/2010 is a different financial landscape.

agent_orange_2

LeeSouthEast wrote: »

It amuses me when I speak to friends and they say "I'm glad it's over".

Over? You fools... it's only just started!

It's nice to see you have high regard for your friends