Right, its now Wednesday and we are another day deeper into this first order disaster for global capitalism. The British have had to come out with all guns blazing to try and save their national banks, the EU has more or less agreed to allow countries to suspend the rules defining borrowing and budget deficits to enable each country to support its banking system. The Fed is now taking on supplying money directly to American business, and the Japanese Stock Market has collapsed.
So the rout of the banking system goes on, National governments are now having to back up the capital system using the resources of the state, so whats the next phase? I will tell you: the market is the mob, once they markets lose interest in the banks or have wiped them out, they will turn on national governments and currencies.
The Eurozone is going to come under intense pressure as will the Euro, but it will probably weather the storm after taking a battering, there may be significant political disruption within the Eurozone as the fallout continues and the long term future of the single currency will depend on whether the national governments will be prepared to do whatever it takes to maintain financial stability. Most of the smaller European currencies (with the exception of Sterling which is still a reasonably strong currency) outside the Euro will get decimated probably simply due to the small amount of reserves underpinning those currencies such as the Danish Kroner.
Many brits would cheer at such an outcome, however, schadenfreude should be kept on hold as despite what I said about Sterling and its current stability; the UK government are now going to seem extremely exposed being outside the single currency, (being so dependent on banking and insurance, and housing to keep the UK economy afloat) and having backed up bank deposits with the UK Treasury the way it has. The nightmare for the UK is that the global capital markets decide to test the assumption that the British Government will support the UK financial system with public money printed in Sterling at any cost; that could result in extreme selling pressure against sterling and a collapse in its value, that of course would be disasterous for the British economy as it is import dependent in many areas.
The upshot of what's happening now, is that concerted international action is now urgent to stop this, and that means the US, the EU, Japan, China, Russia and all the other major players acting more in concert to try and restore some stability to the system. In Europe in particular all the major countries, whether in the Euro or out of it need to pull together to prevent a continental economic collapse.
The next phase of the Credit Crisis
The next phase of the Credit Crisis
"We are never so happy, never so unhappy, as we imagine"
Le Rochefoucauld.
"A smack in the face settles all arguments, then you can move on kid."
My dad 1986.
Le Rochefoucauld.
"A smack in the face settles all arguments, then you can move on kid."
My dad 1986.
-
Oscar Namechange
- Posts: 31840
- Joined: Wed Jul 30, 2008 9:26 am
The next phase of the Credit Crisis
galbally. my electric is off most of the day, i shall argue with you as and when i get the cance, my little irish leprechaun. :guitarist
At the going down of the sun and in the morning, we will remember them. R.L. Binyon
-
Oscar Namechange
- Posts: 31840
- Joined: Wed Jul 30, 2008 9:26 am
The next phase of the Credit Crisis
Ian;1012290 wrote: Have you thought about taking your money out of the Bank? anyone?
When Wall Street was crashing etc, Mr Oscar seriuosly wanted to talk to me about switching all our money to e bay
When Wall Street was crashing etc, Mr Oscar seriuosly wanted to talk to me about switching all our money to e bay
At the going down of the sun and in the morning, we will remember them. R.L. Binyon
The next phase of the Credit Crisis
Ian;1012290 wrote: Have you thought about taking your money out of the Bank? anyone?
No, the deposits are now covered by the State and the bank is probably the safest place for your money, the problem will be what happens if the state itself goes bankrupt, or the value of the money itself becomes worthless (both of which are unlikely, and would only be made worse if you started taking money out of the bank).
No, the deposits are now covered by the State and the bank is probably the safest place for your money, the problem will be what happens if the state itself goes bankrupt, or the value of the money itself becomes worthless (both of which are unlikely, and would only be made worse if you started taking money out of the bank).
"We are never so happy, never so unhappy, as we imagine"
Le Rochefoucauld.
"A smack in the face settles all arguments, then you can move on kid."
My dad 1986.
Le Rochefoucauld.
"A smack in the face settles all arguments, then you can move on kid."
My dad 1986.
The next phase of the Credit Crisis
oscar;1012285 wrote: galbally. my electric is off most of the day, i shall argue with you as and when i get the cance, my little irish leprechaun. :guitarist
My dear, I am no leprechaun, and I am not that little. Though I am Irish.
My dear, I am no leprechaun, and I am not that little. Though I am Irish.
"We are never so happy, never so unhappy, as we imagine"
Le Rochefoucauld.
"A smack in the face settles all arguments, then you can move on kid."
My dad 1986.
Le Rochefoucauld.
"A smack in the face settles all arguments, then you can move on kid."
My dad 1986.
The next phase of the Credit Crisis
Ian;1012328 wrote: I don't trust the state in fact I cant understand why anybody would believe what they say, I've taken my money out of the Bank and would suggest everybody to do the same, the only way it can get worse was if you were to lose your savings,
An Idea would be to buyout the public's debt? and there is some irony when a taxpayer is financing a Bank that is repossessing their home..
I can sympathize with your opinion, unfortunately the value of the paper money you have taken out of the bank is underwritten by the state, so unless you buy gold or something equivalent you are still relying on the state to uphold the value of your personal wealth.
In terms of the second point, I agree, its completely disgusting what has had to be done. As taxpayers and voters its very important that people don't forget what has happened over the last few weeks, and make sure that the finanical world is ever given so much free rein to impoverish our societies again.
An Idea would be to buyout the public's debt? and there is some irony when a taxpayer is financing a Bank that is repossessing their home..
I can sympathize with your opinion, unfortunately the value of the paper money you have taken out of the bank is underwritten by the state, so unless you buy gold or something equivalent you are still relying on the state to uphold the value of your personal wealth.
In terms of the second point, I agree, its completely disgusting what has had to be done. As taxpayers and voters its very important that people don't forget what has happened over the last few weeks, and make sure that the finanical world is ever given so much free rein to impoverish our societies again.
"We are never so happy, never so unhappy, as we imagine"
Le Rochefoucauld.
"A smack in the face settles all arguments, then you can move on kid."
My dad 1986.
Le Rochefoucauld.
"A smack in the face settles all arguments, then you can move on kid."
My dad 1986.
The next phase of the Credit Crisis
Ian;1012290 wrote: Have you thought about taking your money out of the Bank? anyone?
Stocks have all been transfered to a safe zone with little risk and Dr Gallbladder is correct about deposits being insured. If everyone took money out of the banks the whole thing would deflate overnight.
It would be real chaos.
One might consider buying gold though.
Stocks have all been transfered to a safe zone with little risk and Dr Gallbladder is correct about deposits being insured. If everyone took money out of the banks the whole thing would deflate overnight.
It would be real chaos.
One might consider buying gold though.
I AM AWESOME MAN
The next phase of the Credit Crisis
Ian;1012290 wrote: Have you thought about taking your money out of the Bank? anyone?
We have reduced both our holdings and our debts within the banking system - liquidity almost zero but our exposure is close to zero too.
We have reduced both our holdings and our debts within the banking system - liquidity almost zero but our exposure is close to zero too.
The next phase of the Credit Crisis
Nomad;1012454 wrote: Stocks have all been transfered to a safe zone with little risk and Dr Gallbladder is correct about deposits being insured. If everyone took money out of the banks the whole thing would deflate overnight.
It would be real chaos.
One might consider buying gold though.
Have you seen the price of it - with so many people buying gold it's at the top of it's range and not a good investment.
It would be real chaos.
One might consider buying gold though.
Have you seen the price of it - with so many people buying gold it's at the top of it's range and not a good investment.
-
Oscar Namechange
- Posts: 31840
- Joined: Wed Jul 30, 2008 9:26 am
The next phase of the Credit Crisis
Just a thought, wouldn't it be great if everyone withdrew all their money from banks and stuffed it under the mattress. The robbers would be back in business but it'd be great to see the banks sqirm.
At the going down of the sun and in the morning, we will remember them. R.L. Binyon
The next phase of the Credit Crisis
I've finally found someone who knows why the crisis happened. Ayatollah Jannati at, I suspect, Friday prayers: "We are very happy that America's economy is in jeopardy and they are paying the price for their misdeeds. God is punishing them".
There. Now you know.
There. Now you know.
Nullius in verba ... ☎||||||||||| ... To Fate I sue, of other means bereft, the only refuge for the wretched left.
When flower power came along I stood for Human Rights, marched around for peace and freedom, had some nooky every night - we took it serious.
Who has a spare two minutes to play in this month's FG Trivia game! ... My other OS is Slackware.
When flower power came along I stood for Human Rights, marched around for peace and freedom, had some nooky every night - we took it serious.
Who has a spare two minutes to play in this month's FG Trivia game! ... My other OS is Slackware.
The next phase of the Credit Crisis
spot;1016783 wrote: I've finally found someone who knows why the crisis happened. Ayatollah Jannati at, I suspect, Friday prayers: "We are very happy that America's economy is in jeopardy and they are paying the price for their misdeeds. God is punishing them".
There. Now you know.
He is not the only one chuckling........... the progressive leftist of the good ol USA are also happy with the results. It is what they have wanted for eons..........
There. Now you know.[/
There. Now you know.
He is not the only one chuckling........... the progressive leftist of the good ol USA are also happy with the results. It is what they have wanted for eons..........
There. Now you know.[/
"If America Was A Tree, The Left Would Root For The Termites...Greg Gutfeld."
The next phase of the Credit Crisis
There are progressive leftists in the good ol USA? I had no idea. If you can show me an article or two where they're visibly "happy with the results" I'd be interested to read them.
Ian, I reported. No, I don't concur in the slightest. I posted it to inform. I'm in favour of prayer on any day of the week, preferably on all of them.
Ian, I reported. No, I don't concur in the slightest. I posted it to inform. I'm in favour of prayer on any day of the week, preferably on all of them.
Nullius in verba ... ☎||||||||||| ... To Fate I sue, of other means bereft, the only refuge for the wretched left.
When flower power came along I stood for Human Rights, marched around for peace and freedom, had some nooky every night - we took it serious.
Who has a spare two minutes to play in this month's FG Trivia game! ... My other OS is Slackware.
When flower power came along I stood for Human Rights, marched around for peace and freedom, had some nooky every night - we took it serious.
Who has a spare two minutes to play in this month's FG Trivia game! ... My other OS is Slackware.