Censorship of question about the credit crunch

mariegriffiths

On the Sunday Extra show Martin was asked about the credit crunch and answered that he has dropped his advice that the collapse of a bank would be ........infeasibly, unlikely to unlikely. The show was then cut off and fast forwarded to the next safer question. What we missed is on the website. Where Martin said the situation is very scary and that if more than one bank went then we would be serious trouble.

Conspiracy theorists may say that a call from a big bank, maybe LloydsTSB, who advertise in the break of the show, came in. Or maybe the government did not like his comments.

The fact is that from the 1st April 2008 the rules change and there is a capped limit of £4billion for all banks on what savers will get. With a tiny bank like Northen Rock well excedding this figure then any talk of full compensation upon a collapse of a bank is nonsense. Those who want to avoid the risk should remove their investments before this date. But where to put it?

Building societies have to invest at least 50% in homes and even if there is a housing market crash, these homes would be worth something. Local societies tend to have a high ratio in homes, some of the larger ones e.g. Britannia have a lower figure in home and so offer more risk. BTW I belive a housing market crash is likely.
The Telegraph list banks that has higher levels of toxic debt. I would also look with concern at banks with a high level of loan to deposit ratios HBOS 177p Alliance & leicester 173pc I cannot get an exact figure for Santander (Abbey) but Spanish banks are on average 173
http://eldib.wordpress.com/2007/09/29/avoiding-panic-portuguese-bank-close-fund-spanish-banks-hurt-by-rumours/
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/18/cnukbanks118.xml

mariegriffiths

This might put Santander (Abbey) top of the risk league based on loan to deposit ratio.
http://www.recruitspain.com/SpanishMortgageCrash.asp
“Spain’s mid-cap banks have some of Europe’s lowest core capital ratios (6.12pc) and the highest loan-to-deposit ratios (182pc)."

mariegriffiths

http://www.santandernet.com/es/quienes_somos/bspr/investor_relations.aspx
It is only a 134.41 loans/deposits ratio

MSE_Martin

Trust me there was no conspiracy theory, just a technical glitch (and a very annoying one at such a crucial time).

You'll find my view on the credit crunch impact on banks in teh

Are your savings safe article.

MothballsWallet

marie: to be fair to our Martin, he's mentioned the change in his policy to say that bank collapses are now "unlikely" in his main articles and (I think) his blog a little while ago now.

It was a really annoying technical glitch: just a glimpse of what can happen when we all have to switch to digital...

setmefree

I think it ain't a question of Banks collapsing, it's more a case of the Banks finally realising that they are just as vunerable as anyone else.
what i do believe is that we are going into a depression more than a recession, and regardless of status it's time for all to tighten down the hatches.

mariegriffiths

MSE_Martin wrote: »

Trust me there was no conspiracy theory, just a technical glitch (and a very annoying one at such a crucial time).

You'll find my view on the credit crunch impact on banks in teh

Are your savings safe article.

Could we have something about it in next week's show?:beer:

MSE_Martin

Sadly its difficult at the moment as the programmes are themed and we've lost the sunday show - so we're back to just wed which are tight.

However I am doing a credit crunch special on GMTV next week

elantan

why did you loose the sunday shows i honestly thought they were a great idea ..ok i didnt watch them as i am always in bed on a sunday till mid afternoon and dont have the slightest idea how to work the thingamejig....but i'm sure plenty watched it

Sue-UU

Sorry to hear that Martin, I'd just got into the swing of the Sunday programmes too. Still, thanks for letting us know about GMTV, I'll keep a look out for it..

Sue.

jo_b_2

elantan wrote: »

why did you loose the sunday shows i honestly thought they were a great idea ..ok i didnt watch them as i am always in bed on a sunday till mid afternoon and dont have the slightest idea how to work the thingamejig....but i'm sure plenty watched it

The Extra shows were just a trial by Channel 5 and only commissioned for 3 weeks.

Edinburghlass has made a brilliant suggestion, on another thread, that everybody who'd like them to return on a long-term basis should email Channel 5 and ask.