lozgti

Bank bailouts seen among crisis options listed for G7 | Business | Reuters

They have known EXACTLY what they have been doing over the last 10+ years IMHO.Feeding a credit frenzy

Blooming taxpayers saving Banks.Makes me so angry

PeteBrant

The alternative of letting the banks fold would cost the economy, and the tax payer, far, far more.

Klaatu

Only because the system is setup that way, a 300 year old system of interest bearing debt.

Leslie

It seems that the major problems are caused by gross dishonety by some traders.

Les

lozgti

So as we all knew,the reality was that the'strong' economies were all just clouds of smoke,nothing stable or strong about them.

Lend lots of money,everyone spend it,then people can't won't pay it back and its grinding to a halt....not much going out,not much coming in

So is this the same as a person 'going on benefits'

alcazar

iTrader: (2)

Dishonest traders? Surely not?

Alcazar

Petem95

It would cause some (even more) major issues if they didn't bail them out, but I see your point. It's like the banks are saying "bail us out, we've been greedy"

The credit crunch has already caused some big changes though - cheap credit has gone and won't be coming back for a long long time like it was available - if ever.

I wouldn't want to be having to remortgage off a cheap two year fix anytime soon - a lot of people are going to be screwed at the repayments are going to jump significantly - many won't be able to afford them at all.

blockmonke@fsmail.net

It's Game over man game over

Leslie

As lozgti says, the country has been living on credit from the world bank to artificially make the economy look good, and low interest rates have encouraged people to borrow very large sums of money, and now the chickens are coming home to roost!

It did not need that much of an error through dishonest trading and greed on the part of the bankers to start the collapse of the house of cards!

Les

J4CKO

iTrader: (1)

Les is right, the greedy banks have been giving the greedy people what they want.

Perhaps the Halifax could stop their risible adverts and save some money in case they run out ?

speedking

First Direct has stopped dishing out mortgages for a while so that they can catch up with a backlog. Presumably they are actually carrying out some checks now, which takes longer

PeteBrant

Does anyone actually beleive that they have stopped because of a back log? I have enever heard anything so ridiculous.

Petem95

Yeah it's a poor excuse! There is just no money to lend at the moment, and it's just become a vicious circle for mortgages. It's going to destroy the housing market, and I think it'll have a big effect on used car prices too as any kind of borrowing is going to get much much tougher.

I've been expecting a house price crash for some time, however I never expected the outlook to be quite this bad.

I expect house prices may fall 40-50% from their peak, but ironically it may actually get harder to buy as it'll be so much more difficult to borrow the money!

warrenm2

LOL - Understatement of the century!!

Petem95

Better late than never eh

^OPM^

I dont mind a house price crash as i have no mortgage and i will wait 2-3 years then i think move to a nice bigger detached house-all for little extra cash - call me smug or just clever enough to save throughout the so called good times so when the bad times arrive i have a cash pile to see me thro it