Saturday, Feb 24, 2007
More bad news from the US
Daily Telegraph: US mortgage crisis goes into meltdown
Not looking good in the US - careless lending to people who shouldnt really be borrowing/stretching the tradition income multiples etc.....and look what starts to happen
Posted by van hoogstraten @ 05:07 AM (169 views) Add Comment
8 Comments
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1. sovietuk said...
Hopefully there will be some more bad news here soon as well.
"careless lending to people who shouldnt really be borrowing/stretching the tradition income multiples "
that sounds horribly familiar.
2. sovietuk said...
There is also some more bad, gloom and doom news in the telegraph about the worsening situation in the Iran crisis which will also have serious economic implications.
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/02/24/nriran24.xml
3. Cheekie Charlie said...
It seems the media are avoiding the old cliches that "what ever happens in America is a prelude to what will happen over here". In fact it's only the Telegraph who seem to be giving it any coverage the rest of the media are either treating the subject very gingerly or completely sticking there heads in the sand! The fact is UK interest rates will soon be higher than the US and the economic cycle suggests that it wont be for a generation of economic hardship that they'll return to anything like the "historic lows" that have been and passed. Sadly for those people who think the London Olympics will extend the economic cycle I think the financial burden it will place on our economy on the run up may be enough to send us under. Happy days think I'll go make a cup of tea and read the obituries column in the paper.
4. harold said...
"The rapid deterioration could not come at a worse time for British bank HSBC, which has set aside $10.5bn (£5.4bn) to cover bad loans in the US."
Cripes, better shift some of my cash.
5. Superruss said...
I'm with you Harold. Does anybody have a link to that Icelandic savings account which is underwritten by 2 governments?
6. Gingerbread said...
Superruss, are you thinking if icesave.co.uk perhaps?
Regardless of who owns the bank, if they are part of the UK Financial Services Compensation scheme (which icesave are), then your savings are protected
up to the value of £31,600 - or rather should the bank go under then you can claim this compensation back.
Better still, buy some Gold or Silver ;-)
7. japanese uncle said...
Another consideration is, you may not wish to comit your cash to any vehicle for longer than one year period. Three year fixed rate bond for instance may better be avoided in light of some volatility in the financial sector for the next few years to come, but one year fixed rate bond, to allow yourself reasonable maneuvability. The real nightmare is, that you know that the institution holding your money is going down in front of your eyes like a Titanic for which you are totally helpless.
8. Deadspider said...
Gingerbread :
Could be wrong here , but I think the guarantee is dependant upon other banks being able to collectively pay the max of £31,600 . ie , there is no actual guarantee as it has never been tested .