Worst-case scenario is approaching rapidly (crisis growing at Warp 9)

Times of London ^ | 10/06/08 | David Wighton

[TigerLikesRooster]

October 6, 2008

Worst-case scenario is approaching rapidly

David Wighton, Business and City Editor

The credit crisis, which has been building slowly for the past year, is now moving so fast that governments around the world are finding it impossible to keep pace.

On Saturday Angela Merkel, the German leader, criticised last week’s decision by the Irish to guarantee all deposits in their leading banks without consulting other European countries. The Irish Government said that the move was forced on it by the threat of a run on one of its banks. Only a day later Ms Merkel was forced to take almost the same action in almost the same circumstances.

In the longer term, this clearly raises questions about the hopes for (or fears of) European financial integration. In the short term, it presents serious challenges for other European governments.

A week ago the British Government was hoping that it had coped with its immediate banking headache after the bailout of Bradford & Bingley. With the proposed rescue takeover of HBOS by Lloyds TSB, this stabilised the two big British banks that looked most vulnerable.

Then came the shock move by the Irish Government to guarantee not only individual savings but also the large deposits held by companies. Downing Street was furious because British banks feared they would see a flight of money towards Irish banks.

Downing Street decided merely to accelerate the planned increase in the ceiling on guaranteed deposits from £35,000 to £50,000, although the decision remains under review.

[sauropod]

read

[Lazamataz]

read

panic

[TigerLikesRooster]

Derivatives are Warp 9 instruments. Now they are set in reverse, and crisis are spreading at phenomenal speed.

[Lazamataz]

hyperventilate

[Lazamataz]

vomit

[Guenevere]

bttt

[Lazamataz]

fetal position

[durasell]

never panic. ever

[Lazamataz]

hide

[bayliving]

Curled up in my happy place sucking thumb.....

[durasell]

you can hide, but you can’t run

[Lazamataz]

never panic. ever

The words "never panic" send me into such uncontrollable dread that I run around screaming, unable to act.

[saganite]

whimper

[vietvet67]

Derivatives

[Lazamataz]

Curled up in my happy place sucking thumb.....

You misspelled rum.

Hope that helps.

[relee]

Dow is below 10,000

Trading halted in Russia and Brazil ( the only 2 BRIC countries with markets open now)

[mlocher]

On Saturday Angela Merkel, the German leader, criticised last week’s decision by the Irish to guarantee all deposits in their leading banks without consulting other European countries.

I see that the EU is once again promoting a spirit of individualism that will help the global economy grow. (smile)

[txhurl]

We just went under 10K

[Constitution Day]

Soooo...are we all gonna die?