[quote][cite]Posted By: Henry Irving[/cite][quote][cite]Posted By: alex jones[/cite]This whole crisis has its beginning at August 1971 when the Bretton Woods agreement was torn up by Nixon and Kissenger.As a result we are now on the verge of the Great Depression 2. The counter party derrivative risk between banks is no longer fixable.Good Luck to all fellow Addicks.[/quote]
Top post ever on Charlton Life.[/quote]
I'd agree Henry , if i had a clue what he's talking about.
[cite]Posted By: alex jones[/cite]This whole crisis has its beginning at August 1971 when the Bretton Woods agreement was torn up by Nixon and Kissenger.As a result we are now on the verge of the Great Depression 2. The counter party derrivative risk between banks is no longer fixable.Good Luck to all fellow Addicks.
Top post ever on Charlton Life.
I'd agree Henry , if i had a clue what he's talking about.
Just buy some gold and put it in either of your sheds, that's my tip ; - )
[quote][cite]Posted By: T[/cite]I'd love to know why some of the privately owned merchant banks are deemed 'special' and given government assistance becuase of finacial mis-managment? If owned a market stall took a huge salary during peak times but the invested all my profits in Oranges which i couldn't sell on and became rotton and my business was on the verge would i be elegable for a bit fat government loan/nationalisation?
Surely in a free market companies should live and die based upon their decisions?[/quote]
It's called socialism for the rich.
The problem isn't the tearing up of the Bretton Woods agreement but the constant deregulation demanded by in this case the financial and banking industry. A generation agao there were stricter limits on who could loan money and who could borrow it. You had to have collateral and demonstrate a means to pay it back. Unfortunately that restricted the money that could be lent and therefore the profits that could be made. There's nothing wrong in taking risks in business and in lending money you are always having to take a risk. However oversight and controls were swept away - at the demand of the banks no less - and in a headlong rush to make money, greed and avarice took the place of good business principles.
Marx said that capitalism will eat itself and this weekend and the unravelling of the whole credit crunch thing has proved him right.
The biggest problem is Banks 'inventing' new derivatives that they, their risk managers, the FSA (or any regulators) or customers understand all in the name of profit. I have no sympathy whatsover for the Banks nor those that have made themselves rich but I do know and have the utmost sympathy for the normal person who is going to foot the bill whilst those who have caused the situation go home to theri palatial homes.
I am talking frtom experience having been in that industry for over 30 years but I hate it and all it stands for.
[cite]Posted By: T[/cite]I'd love to know why some of the privately owned merchant banks are deemed 'special' and given government assistance becuase of finacial mis-managment? If owned a market stall took a huge salary during peak times but the invested all my profits in Oranges which i couldn't sell on and became rotton and my business was on the verge would i be elegable for a bit fat government loan/nationalisation?
Surely in a free market companies should live and die based upon their decisions?
It's called socialism for the rich.
The problem isn't the tearing up of the Bretton Woods agreement but the constant deregulation demanded by in this case the financial and banking industry. A generation agao there were stricter limits on who could loan money and who could borrow it. You had to have collateral and demonstrate a means to pay it back. Unfortunately that restricted the money that could be lent and therefore the profits that could be made. There's nothing wrong in taking risks in business and in lending money you are always having to take a risk. However oversight and controls were swept away - at the demand of the banks no less - and in a headlong rush to make money, greed and avarice took the place of good business principles.
Marx said that capitalism will eat itself and this weekend and the unravelling of the whole credit crunch thing has proved him right.
Agree broadly with what you say BFR but don't concur with your conclusion that capitalism is eating itself. Many would see this as a needed correction and in any case while the problems centred in the US are hitting across the globe I don't doubt that their are players in other parts of the world who are licking their lips at the opportunities that it will create.
Not nice for those of us who have to work for a living especially if you are self employed : - ( like me but someone will profit.
[cite]Posted By: Brunello[/cite]The biggest problem is Banks 'inventing' new derivatives that they, their risk managers, the FSA (or any regulators) or customers understand all in the name of profit. I have no sympathy whatsover for the Banks nor those that have made themselves rich but I do know and have the utmost sympathy for the normal person who is going to foot the bill whilst those who have caused the situation go home to theri palatial homes.
I am talking frtom experience having been in that industry for over 30 years but I hate it and all it stands for.
Agree. It's the rich who gets the pleasure and the poor what gets the blame.
Thank you Henry Irving for your comments on my post regarding counter party derrivative risks.Its good to see a former director of the club with such a grasp of current affairs.Im posting you a link for your enjoyment.
All the top UK Banks are too big to allow to fail - the government would step in and protect deposits - the shareholders would be left to lose their money (fair enough as this is the risk they take, unfortunately the biggest shareholders are our pension funds).
Anyone concerned should only keep £35K in any one bank.
Being older than the majority I remember when building societies leant you money to buy your house and banks leant you money to buy your car. If you wanted a mortgage first you saved with the building society and then you asked for a mortgage. If they had funds you got your mortgage.The building societies got their money from savings and then leant it out making a profit on the interest rate. Then we got Thatcher, deregulation and whole lot of pin-stripped greedy bastards in the city.
It used to be simple and Ok obtaining a mortgage wasn't easy but they made sure you didn't financially over extend yourself and the system worked.
It is now a vicious circle - targets & bonuses are based on profit and all the time that those are achieved Management is prepared to turn a blind eye.
There are plenty out there who have lost their jobs and who are not at the top of the risk/reward pyramid i.e. backroom staff. In the meatime, those traders that are left will have to do with a £1,000,000 bonus this year instead of the £2,000,000 they got last year.
The funny thing is that many of those that take the risks with the Banks and our money are the very people who are only prepared to invest in cash with their own!!!
The problem is when governments bail out banks the taxpayer gets the bill.Soon the taxpayer will be supporting every bank and insurance company.Then the whole system willl collapse.This is going to make the 1930s look like a walk in the park.get yer money out of the bank as Ive just heard USA bankWashington Mutual(4th largest) is going belly up in the states and the FDIC has run out of bail out money for bank customers.
Alex Jones said "Thank you Henry Irving for your comments on my post regarding counter party derrivative risks.Its good to see a former director of the club with such a grasp of current affairs.Im posting you a link for your enjoyment.
Was having a chat with my next door neighbour whose one worked in banking for years on the walk to the Station this morning, he's obviously concerned for friends and family in the industry but sees this as a good thing that will give the industry the shake up it needs and that things will settle down again...He was more pissed off that Barclays had nabbed all the best bits of the lehman business on the cheap.
Totally agree with you Oggy - at least in communist states the government runs affairs in democratic states it's the media. Papers for the past 12 months have been talking us into a recesion. My answer to it is to go out and spend money...
Overheard a pair of dim women on the way home last night. One telling the other how she'd rushed out to Halifax at lunchtime and withdrew all her money from her account. Stupidity like that is what's screwed Halifax over...
Forgive me if I'm wrong but I thought Northern Rock were in big trouble cos they covered their lending with too much short term borrowing, people taking their money out wasn't the main problem, although it didn't help..
"Overheard a pair of dim women on the way home last night. One telling the other how she'd rushed out to Halifax at lunchtime and withdrew all her money from her account. Stupidity like that is what's screwed Halifax over... "
Comments
Top post ever on Charlton Life.[/quote]
I'd agree Henry , if i had a clue what he's talking about.
Just buy some gold and put it in either of your sheds, that's my tip ; - )
Surely in a free market companies should live and die based upon their decisions?[/quote]
It's called socialism for the rich.
The problem isn't the tearing up of the Bretton Woods agreement but the constant deregulation demanded by in this case the financial and banking industry. A generation agao there were stricter limits on who could loan money and who could borrow it. You had to have collateral and demonstrate a means to pay it back. Unfortunately that restricted the money that could be lent and therefore the profits that could be made. There's nothing wrong in taking risks in business and in lending money you are always having to take a risk. However oversight and controls were swept away - at the demand of the banks no less - and in a headlong rush to make money, greed and avarice took the place of good business principles.
Marx said that capitalism will eat itself and this weekend and the unravelling of the whole credit crunch thing has proved him right.
Great post.
I am talking frtom experience having been in that industry for over 30 years but I hate it and all it stands for.
Agree broadly with what you say BFR but don't concur with your conclusion that capitalism is eating itself. Many would see this as a needed correction and in any case while the problems centred in the US are hitting across the globe I don't doubt that their are players in other parts of the world who are licking their lips at the opportunities that it will create.
Not nice for those of us who have to work for a living especially if you are self employed : - ( like me but someone will profit.
Agree. It's the rich who gets the pleasure and the poor what gets the blame.
In fact we should sighn ebanks-blake he is so safe!
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/09/16/ccambrose116.xml
Anyone concerned should only keep £35K in any one bank.
It used to be simple and Ok obtaining a mortgage wasn't easy but they made sure you didn't financially over extend yourself and the system worked.
There are plenty out there who have lost their jobs and who are not at the top of the risk/reward pyramid i.e. backroom staff. In the meatime, those traders that are left will have to do with a £1,000,000 bonus this year instead of the £2,000,000 they got last year.
The funny thing is that many of those that take the risks with the Banks and our money are the very people who are only prepared to invest in cash with their own!!!
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/09/16/ccambrose116.xml"
Yawn. Not interested in your agenda and not taking the bait. Bye bye
Totally agree with you Oggy - at least in communist states the government runs affairs in democratic states it's the media. Papers for the past 12 months have been talking us into a recesion. My answer to it is to go out and spend money...
;-)
I thought it was hedge fund managers?