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Heads Up - Channel 4 - How the Banks bets your money.
Comments
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Didn't see the program but I wonder what people thought banks did with the money (and what money actually is)?
As to the previous post about banks driving up property prices - no one was forced to take out a mortgage. House buyer greed and dubious statistics probably had more to do with it.
House buyers don't drive up house prices, it's house sellers that generally do that. The banks, clearly, have loaned money recklessly to people who cannot pay it back. They have systematically acted in a negligent fashion in lending amounts of money that is far in excess of what is generally accepted as being reasonable for people to pay back.
People may not be forced to take out mortgages, but it is reasonable for people to wish to own their own abode. It is not reasonable for that abode to increase its value threefold over a 10 year period when salaries on average during that period have risen by around 25% or so. Nor is it reasonable for the majority of the UK's housing stock to be affordable only to handful of hooray Henrys, thereby depriving the rest of us with little or no security.
In answer to your question regarding what people thought the banks were ding with their money. People actually thought that the banks were responsible institutions. People did not think that banks were lending their money recklessly, that's for sure. If people did think that there would have been further runs on the banks0 -
House buyers don't drive up house prices, it's house sellers that generally do that
What kind of market is that ???
More Buyers than Sellers pushes prices down ??????
More Sellers than Buyers push prices up ??????
What was that I was saying about Dumb Britain ?????'In nature, there are neither rewards nor punishments - there are Consequences.'0 -
What kind of market is that ???
More Buyers than Sellers pushes prices down ??????
More Sellers than Buyers push prices up ??????
What was that I was saying about Dumb Britain ?????
There is of course a difference between there not being enough housing, and there not being enough affordable housing. People have been clambering to get onto the property ladder, and the banks have realised that this and they have cleverly, or so they believe, realised that the more thousands that they lend to an individual for as many years as is possible, then the more that individual is tied to them and the more money can be extracted from the individual in the form of interest. Where the banks have not been so clever is in not realising, or wanting to realise, that there isn't an endless supply of money available to pay back these loans. In other words, the money does not exist, has not been earned anywhere and in reality it wont be.0 -
Bank rate has just dropped-Right? if you believe this programme the bank rate will soon rocket thru the Roof-anyone see it that way?0
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Bank rate has just dropped-Right? if you believe this programme the bank rate will soon rocket thru the Roof-anyone see it that way?
Yes the bank base rate has dropped. But it remains to be seen whether all mortgage lenders drop their borrowing rates by the full amount and whether if they reduce their rates if there's another rate fall.
For the banks to recoup thier losses they will either need to lift their borrowing rates or lower lower their interest rates payable to depositors. Of course they could do both, thus widening the spread. Given that cash is getting harder to come by, the laws of supply and demand should mean that savers will benefit.
I cannot honestly see rates for borrowers rocketing. That would cause too much instability in the economy. It would cause defaulting on mortgage payments and that leads to reposession and the reposessed house gets sold at auction for less than the bank loaned on it, etc etc. The housing market needs correcting, but it needs to be done gradually so as not to upset the economy too much. However, it seems to me at the moment that a sharp correction is possibly imminent.0 -
bristolleedsfan wrote: »Calling others stupid and throwing insults at people appear to give u some kind of perverted pleasure. :rolleyes:Personal Responsibility - Sad but True
Sometimes.... I am like a dog with a bone0 -
Deleted_User wrote: »Sound familiar.........?!
http://www.ft.com/cms/s/0/66db756a-de5d-11dc-9de3-0000779fd2ac.html?nclick_check=1
Ah my previous effort in registering with the FT has paid off - I was allowed to read the whole article.
In the short term this must be good news. Instead of the crooks from "Vegas" selling loans to people who obviously could never afford them and the banks parcelling them up and shipping them over here; they can now pawn them with The Fed.
The Fed. will print a few more greenbacks and the banking con trick can continue.
In the medium term, the incoming new president will have to deal, not only with the money-wasting, good-will-evaporating, fiasco in Iraq, but the anger of China and all the other sovereign wealth funds, who see their funds devalued by inflation.
IF we had managed to stand on the sidelines, during the last few years of get rich quick games of pass the parcel, London's reputation would have made it the natural global equivalent of Switzerland. Sadly the handling of NR, means we are branded as an off shore state of USA and we are already seeing our ephemeral wealth eroded as the Euro climbs.
I think "cash is king", we are not at the bottom yet, but I'm not sure whose cash!
Harry.
PS It was a good summary program of the events of the last 6 months, a story of sleeping guard dogs; however the bit of the hour that sticks in my mind was the Tropicana advert. The Chinese family with dumplings for breakfast, were in Hong Kong (The "zig zag" skyscraper is the HK branch of Bank of China), but did anyone recognise the the deep frozen place where people were drowning breakfast in maple syrup? Probably comfort food as they contemplated their mortgage/property-value/investments?0 -
Channel 4 has little or no credibility when it comes to making programmes like this. Remember Channel 4 believes that there is no global warming and its all down to marketing and companies and Governments wanting to make money on the back of fear of global warming.
Dumbed down, cynical, negative, using minority events to suggest widespread practise and offering opinion as fact.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Channel 4 has little or no credibility when it comes to making programmes like this. Remember Channel 4 believes that there is no global warming and its all down to marketing and companies and Governments wanting to make money on the back of fear of global warming.
Dumbed down, cynical, negative, using minority events to suggest widespread practise and offering opinion as fact.
I would hardly call what the banks HAVE been doing as "minority events"!! The facts are out there, and you've only got to look at bank share prices and stock markets to realise that!:rolleyes:
Oh, and "global warming" doesn't exist. People ARE being systematically brainwashed; it's a load of rubbish!0 -
Deleted_User wrote: »Oh, and "global warming" doesn't exist. People ARE being systematically brainwashed; it's a load of rubbish!
No disrespect but I sincerely hope that not too many people think as you do!0
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