Posted on 10/06/2008 7:02:37 AM PDT by 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.
(Excerpt) Read more at business.timesonline.co.uk ...
So with mark to market the MBS's had 0 value even though 90% of the loans are being paid and the MBS's are producing cash flow.
He took his own advice that he gave in the speech to the good guys: "Just walk away!"
Everybody needs top go shopping. And take an airplane trip somewheres. That’s what we need.
Well, I do have tickets for my lady and I to visit friends and family back in the Pacific Northwest this Thanksgiving! I intend to spend the extra money to bring back a suitcase full of great Northwest beers, as well.
Dead cat bounce.
Thnink Russian 1998 economic collapse. Seems the Russians are doing quite well these days. The USA shall also make it through this tough time. Take care of your family and neighbors.
The MBS’s never had -0- value, only that the way they were accounted for under the Mark to Market rules, they were unable to give a ‘fair market value’ to them. They were undervalued with the old mark to market rules...therefore the banks couldn’t sell them accurately, and were stuck with no capital to loan, when those values caused fear of purchase. In the end, the values will be given closer to their actual bank sell values with new rules...that’s why Bernanke said we would pay a little more than the “firesale” value...as the MBS’s can be valued more accurately, although still far less than actual value on auction.
I’ll pass on the airplane trip, since many airlines are now sending their maintenace contracts overseas....it’s a idiotic idea no matter how cheap.
On the other hand, Vanderbilt is still unbeaten.
Yuck, is that a nipple? How Gross!!!
Bout time. I was done paying for it.
nahh, just dumping stocks to load up on CASH... cause KAISCH IS KING! splitting it up between 3 or 4 banks and then slowly pull out a little cash every day.
Just till February or March.... then just wait and see what the National Socialist Democratic Peoples Party has planned for us.
Cause you just know that they're gonna declare a stock "holiday" for everybody to calm down and NOT BE GREEDY, cause that's not FAIR! They banned short selling, so that means they can ban all selling for "a little while".
Get my drift. That's why everybody is loading up on cash... they see where the democrat b#ttwipes are going with this thing.
If they weren't so stupid it would be laughable, but it's like watching a retarded kid play with a gun... all happy and smiling like it's a toy (Pelosi, Frank, Dodd, Reid) and then pointing the gun at someone and pulling the trigger...
ooooppsss.... we didn't mean that to happen... it's the guns fault. Here let me show you how to fix a gun... Then of couser we let pick up another gun and then they're pulling the trigger, again..
Whomever voted for the democrats is just as stupid and will still blame greedy republicans, conservative Christians, talk radio, bankers ... and lets not forget the JOOOOOSSS... code named "neo-conservatives"..
Oh, that's right my Judaic-Hebraic friends..I hope you gave up all your guns in New York and Cali.... cause guess what..... you're gonna get blamed for this one too. Cause that's what dems do to stay in power.
bunch of tools.... enjoy the food fight coming.
The good news is that we've got Natural Gas coming out of our ......... ground and selling for beans...
BRIC investmnets used to be so cool.... The Brazil ETF is EWZ and is less than half of it’s 52 wek high
“And are concluding that no one still solvant is going to get a dime from it, unless tiny, and that it will not buy all the bad mortgage debt and remove it from the system -— because as written, anyone who takes the Treasury’s dollar is signing away the bank. The treasury secretary can practically say “and oh, we own you”, if they touch a penny. “
So - what you are saying is that we are in the same spot we were prior to the bailout? Only our deficit has now skyrocketed.
sigh.
So - this is why Europe is in a panic? Or would they be in this state regardless?
No wonder the dems were smiling and acting so giddy when this turkey passed.
HEROIN (HRN) 56.23 (-68.11%)
Somewhere Democrats are happy...
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