How much longer will this bear market go on for?

sevenhills

RyanHello said:

Cheap borrowing and low interest has caused an over inflated housing market.
Sooner or later the rates had to go up. 

I'm shocked at how financially illiterate the UK population is

But a shock to the markets because of an uncosted budget pushed them up too quickly. A little pressure on the Bank of England would have been better.
Go to the housing board to see how many people have have adversely affected.

Type_45

Interesting times. 

wmb194

Type_45 said:

Interesting times. 

Okay. What about HSBC? Barclays? Credit Agricole*? Goldman Sachs*? Bank of America*? JPMorgan Chase*? Wells Fargo*? You need to give us more than, 'oooh, it's big!' We need to know why to worry.

*From a quick Google these have larger balance sheets than Deutsche and Barclays is close.

Thumbs_Up

GSP said:

We also need to build hundreds of thousands of homes as well.
In the eighties when people were allowed to buy the council homes they had been renting, for each one sold a new home should have been built.

Remember when the M25 was built, free flowing vehicles, errr not so now. This country needs to build a few cities! Along with the infrastructure that goes along with it, hospitals, gp’s, schools, collages, police station’s, fire brigade stations, library’s, health centres, main roads.

Cleary this country can borrow money to build the lot, but where to build that’s the question that needs to be asked.   

I’m happy for this country to let in all the world’s waifs and strays with all the baggage that comes with them only for the fact I need people to fund my state pension if and when I get to old age.

Aylesbury_Duck

RyanHello said:

Cheap borrowing and low interest has caused an over inflated housing market.
Sooner or later the rates had to go up. 

I'm shocked at how financially illiterate the UK population is

I'm not.  I've worked in school and adult education for many years, and levels of numeracy are shockingly low.  I've experienced lots of young people and adult learners getting the "pass" grades of C and now grade 4 at GCSE maths who can't do straightforward percentage calculations, couldn't tell you what five years of a certain interest rate compounds to and can't use ratios.  Those aspects of numeracy underpin all sorts of financial principles, yet we have thousands of people who are supposedly qualified to a reasonable standard in maths and are told there is no need to develop their arithmetic skills further.  How on earth are those people supposed to grasp exactly what an interest rate change to their loan, credit card or mortgage actually means?

Thumbs_Up

Aylesbury_Duck said:

RyanHello said:

Cheap borrowing and low interest has caused an over inflated housing market.
Sooner or later the rates had to go up. 

I'm shocked at how financially illiterate the UK population is

I'm not.  I've worked in school and adult education for many years, and levels of numeracy are shockingly low.

Start with the basics, discipline at home carries forward to discipline at school. Fix that then this country can cherry pick mathematicians or physicist. Then as a country we can start to invent things again, you know like we use to.

Thumbs_Up

Back on topic

Nothing new about Deutsche bank, they have been kicking that can for a long time.

Type_45

wmb194 said:

Type_45 said:

Interesting times. 

Okay. What about HSBC? Barclays? Credit Agricole*? Goldman Sachs*? Bank of America*? JPMorgan Chase*? Wells Fargo*? You need to give us more than, 'oooh, it's big!' We need to know why to worry.

*From a quick Google these have larger balance sheets than Deutsche and Barclays is close.

It's not so much about how big CS/DB are in relation to other banks. It's about their predicament and the fact they are of a similar size to Lehman which sparked chaos when it folded. 

Look at the share price of CS.

Type_45

Thumbs_Up said:

Back on topic

Nothing new about Deutsche bank, they have been kicking that can for a long time.

Easy to kick the can when the money printer is on.

But when credit becomes tight and other banks you are exposed to start to also flounder then it's a house of cards. 

When the tide goes out we will find out who hasn't got trunks on. 

wmb194

Type_45 said:

wmb194 said:

Type_45 said:

Interesting times. 

Okay. What about HSBC? Barclays? Credit Agricole*? Goldman Sachs*? Bank of America*? JPMorgan Chase*? Wells Fargo*? You need to give us more than, 'oooh, it's big!' We need to know why to worry.

*From a quick Google these have larger balance sheets than Deutsche and Barclays is close.

It's not so much about how big CS/DB are in relation to other banks. It's about their predicament and the fact they are of a similar size to Lehman which sparked chaos when it folded. 

Look at the share price of CS.

Don't you have any specifics? What will trigger the problem at DB you're worried about?

CS has been performing terribly for a very long time. A weak share price isn't in and of itself indicative of a potential systemic risk we need to worry about. Again, specifics?