Wednesday, Jun 20, 2007
Big Bank Write Offs will be the Norm
Daily Telegraph: Bear Stearns to rescue ailing property fund
Bear Stearns has proposed a $1.5bn (£755m) rescue package for one of its asset management funds facing imminent collapse after betting heavily on US sub-prime mortgage debt.
Posted by dobber @ 09:20 AM (187 views) Add Comment
4 Comments
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1. Orwell said...
"...Hopes that the property slump is touching bottom are rapidly giving way to fears of a second leg down, with major ramifications for US economy..."
Oh dear, oh dear oh dear oh dear... Shortly showing at all disreputable (banking and finance) institutions in the Uk.
2. Orwell said...
Pop corn included!
3. financial planner said...
There is huge global financial banking skull-duggery here. If the fund bursts then every bank, everywhere, will be forced to revalue DOWNWARDS their CDOs. This would be absolutely huge. Thus the banks will pay up a further $500mn, after losing $00mns! The same thing set off the Asian crisis in 98.
4. tyrellcorporation said...
'Adding to the gloom, US housing starts began falling again in May after a four-month respite. They are now down 24pc from a year ago.
Hopes that the property slump is touching bottom are rapidly giving way to fears of a second leg down, with major ramifications for US economy.
Ben Bernanke, the chairman of the US Federal Reserve, said last week that the housing slowdown might be deeper than originally thought, expressing concern that the "wealth effect" would hit consumption hard because so much of the distress is concentrated among poorer people with scant reserves to fall back on.'
Bloody Hell !!!
An imported HPC is the only way the UK property market is going to crack. There are still back-to-back house makeover programmes during the day on all channels. All the time the media remain obsessed the British public will too. Property is still seen as a one way bet in the UK and it'll take a severe 'head-shot' from economic downturns elsewhere to change that attitude.