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Interest Rates on Thursday

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Comments

  • Melissa177
    Melissa177 Posts: 1,727 Forumite
    Generali wrote: »
    You're better off laying in this situation. Last night you could lay +.25% at 1.11, i.e. you risk £1.10 (if rates increase by .25%) against a possible win of £10 if any other scenario occurs.

    You were right!

    Last time I go drinking with City traders! :o
    Errors of opinion may be tolerated where reason is left free to combat it. - Jefferson
  • mystic_trev
    mystic_trev Posts: 5,434 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Next will be credit tightening by lenders and the market will turn.

    Already happening. HSBC have just reduced LTV's and Nationwide have followed suit!


    http://www.citywire.co.uk/News/NewsArticle.aspx?VersionID=91957&MenuKey=News.Money
  • ManAtHome
    ManAtHome Posts: 8,512 Forumite
    Part of the Furniture Combo Breaker
    Not really credit tightening yet Trev - think they're just making sure they get their cash back if/when it goes to the wall. Probably still quite happy to lend 10x income providing LTV is low enough to flog it quickly...
  • Guy_Montag
    Guy_Montag Posts: 2,291 Forumite
    1,000 Posts Combo Breaker
    It's a step in the right direction though.
    "Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
    Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
    "I think I'll become an alcoholic," said Betty.
  • ManAtHome
    ManAtHome Posts: 8,512 Forumite
    Part of the Furniture Combo Breaker
    Yep, obviously learned something from their american "adventures"... (although the cynic in me still thinks "cover your !!!" rather than "responsible lending").

    [edit] flippin 'eck & blimey - can't even mention donkeys without getting exclamated...
  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    ManAtHome wrote: »
    Yep, obviously learned something from their american "adventures"... (although the cynic in me still thinks "cover your !!!" rather than "responsible lending").

    [edit] flippin 'eck & blimey - can't even mention donkeys without getting exclamated...

    HSBC's risk appetite seems to be falling. Perhaps the market will follow them, perhaps not.

    HSBC (and other banks) lend in a manner responsible to their shareholders, not their clients IMO. That's where their responsibility lies, not to you and I. They will turn a profit when and where they can.
  • BobProperty
    BobProperty Posts: 3,245 Forumite
    1,000 Posts Combo Breaker
    Generali wrote: »
    HSBC's risk appetite seems to be falling. Perhaps the market will follow them, perhaps not.

    HSBC (and other banks) lend in a manner responsible to their shareholders, not their clients IMO. That's where their responsibility lies, not to you and I. They will turn a profit when and where they can.
    I think HSBC own a subsidiary in the US which was heavily into the sub-prime market and just got "burned". I'll edit this post when I can find the company concerned.

    http://news.independent.co.uk/business/news/article2328846.ece

    Writing off up to $11bn.
    A house isn't a home without a cat.
    Those are my principles. If you don't like them, I have others.
    I have writer's block - I can't begin to tell you about it.
    You told me again you preferred handsome men but for me you would make an exception.
    It's a recession when your neighbour loses his job; it's a depression when you lose yours.
  • Guy_Montag
    Guy_Montag Posts: 2,291 Forumite
    1,000 Posts Combo Breaker
    I think HSBC own a subsidiary in the US which was heavily into the sub-prime market and just got "burned". I'll edit this post when I can find the company concerned.

    http://news.independent.co.uk/business/news/article2328846.ece

    Writing off up to $11bn.

    Does it matter which of the 67 mortgage lenders that have gone bust in the US in the last year?
    "Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
    Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
    "I think I'll become an alcoholic," said Betty.
  • Sisyphus
    Sisyphus Posts: 293 Forumite
    I think HSBC own a subsidiary in the US which was heavily into the sub-prime market and just got "burned". I'll edit this post when I can find the company concerned.

    http://news.independent.co.uk/business/news/article2328846.ece

    Writing off up to $11bn.

    yep, they were trying belatedly buy market share at the top of the US credit bubble.
  • BobProperty
    BobProperty Posts: 3,245 Forumite
    1,000 Posts Combo Breaker
    Guy_Montag wrote: »
    Does it matter which of the 67 mortgage lenders that have gone bust in the US in the last year?
    It would do if I had puts on them and they stopped trading. :D
    A house isn't a home without a cat.
    Those are my principles. If you don't like them, I have others.
    I have writer's block - I can't begin to tell you about it.
    You told me again you preferred handsome men but for me you would make an exception.
    It's a recession when your neighbour loses his job; it's a depression when you lose yours.
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