Oil Prices and Interest Rates.....

Thrugelmir

Any views on about Deutsche Bank Generali. Or are you detached from the European Banking scene down under.

Apparently question marks hanging over Barclays and CitiCorp as well.

padington

Thrugelmir wrote: »

Any views on about Deutsche Bank Generali. Or are you detached from the European Banking scene down under.

Apparently question marks hanging over Barclays and CitiCorp as well.

Someone told me yesterday that Deutsche bank were claiming this week that there is absolutely no chance of them going under.

Pschologists usually say that when someone starts saying they are not going to do something, that is the first step in them doing it ...

Thrugelmir

padington wrote: »

Deutche bank were claiming yesterday that there is apsolutly no chance of them going under.

Pschologists usually say that when someone starts saying they are not going to do something, that is the first step in them doing it ...

RBS had a £12 billion pound rights issue six months before toppling over. HBOS were given a secret £25 billion loan by the Treasury to keep it afloat while Lloyds organised it's takeover. Who knows what's really going on. Perhaps the ECB is pumping QE into the European banking system for good reasons.

cells

Generali wrote: »

Petrodollars have enabled a number of things, for example:

- Western nations to run big budget deficits
- Western banks to have a ready supply of cheap money to lend to borrowers

oil trade is not responsible for the budget deficits of the nations of the world. budget deficits can be funded internally

the saudis or norway (or china for the electroniks-dollars) or any of the net saver countries dont deposit much/any money into banks surely they buy government bonds or companies or shares or infrastructure projects etc.


money is cheap because that is the normal course of economic development. growth slows because that is the normal course of needs and wants getting less and less important as you go up

Thrugelmir

cells wrote: »

the saudis or norway (or china for the electroniks-dollars) or any of the net saver countries dont deposit much/any money into banks surely they buy government bonds or companies or shares or infrastructure projects etc.

To fund deficits such as Saudi. They'll start selling assets to fund the shortfall.

Capital outflow from China last year amounted to $750 billion. In January reckoned to be $110 billion. No wonder London house prices are so high.

mystic_trev

Generali wrote: »

What do you think about them?

Something else for people to panic over?

Generali

mystic_trev wrote: »

Something else for people to panic over?

I agree.

You can see the following situation around a million breakfast tables.

She: It said on the news that Big Bank is in trouble. Apparently they've had to bail-in holders of Cocoa.
He: Oh well, I'm sure it's nothing to worry about and there is no need to move our house deposit we have been saving for 5 years to another bank at nil cost.

Generali

cells wrote: »

oil trade is not responsible for the budget deficits of the nations of the world. budget deficits can be funded internally

the saudis or norway (or china for the electroniks-dollars) or any of the net saver countries dont deposit much/any money into banks surely they buy government bonds or companies or shares or infrastructure projects etc.


money is cheap because that is the normal course of economic development. growth slows because that is the normal course of needs and wants getting less and less important as you go up

The total quantity of petrodollars was estimated by Citibank to be $1tn in 2007 and so is probably more like $1.5-2,000,000,000,000 now . It wouldn't need a huge proportion of that to be held on deposit for a huge amount of bank reserves to be based on Petrodollars.

Thrugelmir

mystic_trev wrote: »

Sorry to hijack the thread, but what are your views on 'CoCo's' Gen?

Convertible ones?

cells

there is a 'commodity' industry bigger than even oil and that is cars, worth something like $3 trillion a year

The Saudi Arabia of car exports is Germany. Exporting something like $250 billion a year worth of cars. That is more than 3 x the value of saudi oil exports.