US bank crisis

[Rush]

And as if by magic..$700 billion is made available to the US Banks..just like that (T. Cooper style). WTF lets just forget intelligence and bail all the numb nuts who make millions and let us mere mortals keep paying our taxes to those with worthless degrees and qualifications.. hey i can hedge fund..borrow shares from wall street sellers ..sell them. wait till their price decreases buy them back..keep the profits and screw everyone else...hey ...easy..although i dont have 1B of someone else`s dosh to screw around with ..

Democracy..yeah ...whatever

 

[Ian]

The unfortunate part is I don't think we've got much choice ... if we take a moral standing and don't bail them out, then we're really screwed. If we do bail them out, then we're propping up irresponsible lending practices from a wunch of bankers. Ironically, these hedge funds are making money from shorting banking shares... and getting the money to do this from loans from the very same banks .

As much as I don't like it, cutting our nose off to spite our face could be even worse. As a proviso of the bailout money being pumped in, they should ensure that no bonuses are paid by the banks amongst other things. The only way to get out of the predicament the global economy is in is to let the bubble bust - and that's going to take a long time, and hurt.

At the moment, the BOE is impotent to an extent - as adjusting the rate of inflation won't effect the inter-bank lending rates (which are effectively dictating the amount we pay on loans/mortgages). I feel really sorry for people that are going to lose their homes and jobs because of this mess

.

Privatising profits but socialising losses really cheeses me off .

 

[Abarbarian]

Aye the big crash is coming alright. Start saving your pennies and bargins will be there in abundance.

 

[sknyer]

why banks are getting bankrupt??????????????????

 

[murdoch]

By letting so many high risk people borrow money the banks are now in the position that negative equity could mean that those who default on their payments do not pay all the money back that they owe. This coupled with until recently soaring house prices & low interest % that a rise by only 1% could result in home repossessions soaring.

Banks are therefore now in the position of lending to much out, hence 100%+ mortgages which will now be a thing of the past & it may go back to the old days of having to put 10% down as a deposit, this would then have an effect on those wanting to get on the property ladder less of a chance to do so.

With banks over-lending this is why some big names are finding it hard to stay in business!!

I can remember in the 1987 crash a friend had £150k negative equity on his house it took over 10 years before he got back into the black again, it also cost his wife her hair which turned white over night

 

[Madxgraphics]

wunch of bankers.

Took me about 20 minutes to get it...DOH!...Friday's are slow for me..