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 ...
I bet we get evicted from the planet Earth by our landlord.
You’re BACK!!! Great to see you, even in this crisis.
Government doesn’t have enough money to bail evryone out....
Call me when we go under 0.
Soooo...are we all gonna die?
Yes, eventually. You got a problem with that?
You usually see an angel right before you pass on.
FYI, my latest survival skill is learning to brew beer.
Horribly.
We’re all gonna be digging grubs out of the ground with sticks, I tell ya.
Thanks!
Not in the least.
The Dow is trading at about 18-1 P/E earnings. By any sound fundamentals, it should be at about 7/1. It’s inflated, and has been greatly inflated since the Clinton Administration flooded the marketplace with dollars, thus creating the bubbles in real estate, stocks, and the whole Dot.com bs. So it has to come back to equilibrium. Screw the derivatives, let them all unravel. And when the dust settles and everyone regroups, we’ll be back where we should be and stop wasting tons of money propping up a phony system.
is it time to walk towards the light yet?
If your stick isn't repossessed by the Stick And Loan.
Don’t worry! Barry O is gonna save us all!
I thank God my father taught me how to farm and my momma taught me how to cook!
All are welcome, all are welcome.
Do you thinks there’s anything in place to stop the bleeding from the fairy ell Warp 9 instruments? Looks like investors are dumping stocks to make margin calls on the derivatives now in reverse,
Everybody who can read knows this. Knowing this, I have no idea where financial markets, or more properly, the people that work in and follow financial markets, would think that ....
A. Governments would ‘fix’ or ‘save’ them.
B. That there wasn't a more than 50/50 chance they would make things worse.
C. That, to make an example, the government wouldn't do open heart on a guy with a bad kidney.
ahh, the great ponzi scheme has run it’s course ...
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