The default delusion: Inevitable & desirable

Thrugelmir

CLAPTON wrote: »

Did you know that Lloyds was a dodgy bank

It wasn't. The issues are in HBOS.

If your read the group accounts the results are split out between the operating entities in the group.

Lloyds took a gamble by merging. And it failed big time.



Brown and Darling provided the sweetner with the £25 billion treasury loan. The reality was HBOS was a wreck requiring far far more capital. Due diligence would have identified the issues.

CLAPTON

Thrugelmir wrote: »

It wasn't. The issues are in HBOS.

If your read the group accounts the results are split out between the operating entities in the group.

Lloyds took a gamble by merging. And it failed big time.



Brown and Darling provided the sweetner with the £25 billion treasury loan. The reality was HBOS was a wreck requiring far far more capital. Due diligence would have identified the issues.

exactly my point; they were solid as a rock until they failed; so why would you trsut any bank or building society without a government guarantee?

CLAPTON

Thrugelmir wrote: »

And what does this solve?

it means you can't lose your lifes savings although inflation may make them a little less valuable

which would most people choose if push came to shove?

Wookster

CLAPTON wrote: »

given that all the masters of the universe, governor of the BoE, equivalent in USA and every developed country in the world plus thousands of financial analysts all over the world missed the financial meltdown, do you truely think that ordinary people are capable of spotting the next financial meltdown ?

No, the vast majority would opt for national savings or the mattress.

Actually plenty of folks did warn of the dangers of too much credit building up in the system. They were called fools because things 'had changed.'

lvader

Thrugelmir wrote: »

And what does this solve?

It helped us get ahead of the game and why we are paying less than 2% and Spain is paying 7%.

Wookster

CLAPTON wrote: »

exactly my point; they were solid as a rock until they failed; so why would you trsut any bank or building society without a government guarantee?

What planet are you on? Banks survived for many decades without the express government guarantees they benefit from now.

Thrugelmir

lvader wrote: »

It helped us get ahead of the game

The game is heading our way. As one by one the weakest will get picked off. So personally I wouldn't get to complacent.

CLAPTON

Wookster wrote: »

Actually plenty of folks did warn of the dangers of too much credit building up in the system. They were called fools because things 'had changed.'

OK

there is a huge difference between saying there is a bit of a bubble developing

and expecting HBOS or RBS or Lloyds to be nationalised

if you foresaw that and withdrew your money from those institutions that then congratulations

I freely admit I did not see that happening.

CLAPTON

Wookster wrote: »

What planet are you on? Banks survived for many decades without the express government guarantees they benefit from now.

remind me, in your lifetime how many retail banks in the UK failed such that ordinary savers lost money?

lvader

Thrugelmir wrote: »

The game is heading our way. As one by one the weakest will get picked off. So personally I wouldn't get to complacent.

Germany would get taken out before us.