unclebuck

The sh*t has well and truely hit the fan this time.

HBOS leads FTSE 100 lower after Lehman bankruptcy - Telegraph

Hold on to your seats, it looks like this could be the big one.... major City figures are saying that the roof is about to come off in a way never seen before.

lozgti

Don't be daft!

Next thing we will hear is Boom and Bust is over,inflation is 1%,the whole country is employed and we are the best placed economy to survive it all!

(think even the Poles have gone home)

Anyway, I'm looking forward to FTSE breaking the 5000 barrier

MJW

I was watching this unfold last night and early this morning. It's good in a way that the Fed has refused to bail them out, its about time these institutions learned that there's consequences for recklessness. Plus the US has piled enough taxpayers money into propping up Bear Stearns, Freddie Mac, Fanny Mae, etc. Why should profits be privatised & the risk borne by the taxpayer ?

mrtheedge2u2

Alan Greenspan sums it up best "We will see other major financial firms fail but this does not need to be a problem.

It depends on how it is handled and how the liquidations take place.

And indeed we shouldn't try to protect every single institution. The ordinary course of financial change has winners and losers."

unclebuck

Alan Greenspan also says trhat this is a once a century event and by far the biggest that he has ever seen.


Anyway, the good news is we are lucky we have a crack team in place in Government to deal with the looming crisis... oh no, wait a minute... we don't do we? We've got Bunker McBroon with his crackpot cronies, who is completely preoccupied with nothing else except hanging onto his precious power.

mrtheedge2u2

lol @ above

FlightMan

Sorry for the thread hi-jack UB, but who else thinks if the OP was by PSL, he would have been infracted and banned again for it?

Anyway, back on topic, I think we're all doooomed.

( insert Dad's Army pic here )

john banks

Creative destruction can be a good thing. Even though it has resulted in unemployment in our household.

Alan Greenspan seems to have too many "1 in x year" events. He probably caused most of the trouble with lax monetary policy.

mrtheedge2u2

but massive risk-taking by the institutions themselves caused a lot of their own downfall

jonc

..and it ain't over. There still could be a few more major players going the same way soon, may be HBOS next....and where did BoA get $50bn to by Merrills in this economic climate? surely it'll be a while before they see any returns on this investment?

mrtheedge2u2

If HBO goes down there will be less quality TV viewing for all of us!!!!!!!!!!

MJW

Not only that, but city smart asses who short shares are contributing to the problem too - HBOS suffered this from rumour-mongers and United Airlines were almost bankrupted last week by someone digging up a 2 year old doom and gloom story about them (click here to read about it)

lozgti

Anyone jumping out of office blocks yet or is it just tears/head in hands in front of a red screen?

How's the Dow doing

FlightMan

In the words of a German U-boat captain.


" DIVE DIVE DIVE "

Chris L

100% agree!

Suresh

It's an all-share deal that probably isn't worth $50bn anymore as BoA shares fell quite heavily today.

It'll affect the man on the street if owing to further-reduced liquidity and even less lending. House prices will suffer if the demand side can't get finance.

Darbo_wrx

houses are well overpriced anyway

whats currently for sale for 200k is worth maybe £75k

Suresh

It's worth whatever 'the market' determines at that point in time of course. If you think the value is 75k then just wait and buy if/when it hits that level. Could keep falling even lower of course or might just never reach that level in the first place . That said if a 200k property falls to 75k then I've be having two of them!

fatscoobfella1

iTrader: (1)

^^^^^^^^^

Dont think they will dip that much


Or i will have 3

ahar

iTrader: (3)

Crazy - go back 18 months and you'd get odds of 1000-1 of Lehman and Merril Lynch both going titsup in the same week.

I bet most of the guys in the city haven't ever seen anything like this.

If it get's really bad they'll have to sell their Ferraris - hah!

Carotid

The wharf was amusing at lunch time, the unemployed carrying vintage wine under their arms.

FlightMan

Nice.

fast bloke

AIG has won approval to give itself a bridging loan of 20 billion. I think I've missed something here. If they have 20 billion to lend themselves, why not do it last Friday and avoid the fuss. Maybe it is just a cunning plan to create some money on paper to stop them from going lehman. Can't see that one working out in the long term.

ON the bright side - the Fed will probably cut rates tomorrow, which will strengthen STG v's Dollar. I'm going skiing in AMerica in December, so my ski passes should be substantially cheaper. Every cloud has a silver lining

Carotid

SPOKESMAN FOR PRIME MINISTER GORDON BROWN
"The UK is better placed than in the past to deal with these challenges."

Phew !

lozgti

Its our own fault for buying into what they all offered.

A mortgage 10x salary and a 1 series BMW "for only £199 a month" on the drive (which you will never own because you will be daft enough to come back in 2 years and take on another of our great deals)

Greedy banks,shops,garages and most of all ,greedy people all created this

fatscoobfella1

iTrader: (1)

^^^^^^^^^^^^^^^^^

Never a truer word said...

As my old gran used to say "all fur coat and no knickers"..

I have a couple of friends who are 100k in debt...Both are renting,rubbish cars,bugger all to show for it....All got caught into the credit card,keep up with the jones thing...

Mind you,they have made bankruptcy a lot easier now..

Back on OT..

serega

You say, who cares that they had all the debt and no real money and are now going bust . But who is going to pay the taxes when more and more people are on benefit claims and are living on the street? Where is the government going to take money from to fund education and NHS ?

Who will buy all the products that your business is selling ? Businesses will continue to see dipping profits, they will cut salaries and thus creating an even bigger burden on the people that actually have the money.

Banks and property are just the first ones in the firing line because its main business rely on credit. But its not called a "global crisis" for no reason. And if you think it wont affect you in any way, you are a fool.

fatscoobfella1

iTrader: (1)

Of course it will affect me,and most other individuals too. Im sure by the time the country swings back in a couple of years,eveybody will know someone who has lost there job,house or car...!!

People have forgot that they need to save for leaner times..

SJ_Skyline

24600 job cuts for HP over the next 3 years, fair enough they bough EDS a couple of months back but that's a huge number.

source

unclebuck

Just arrived at 5000 now.... still falling....