Wednesday, Feb 27, 2008
A return to old-fashioned banking?
thisismoney: Cheap credit 'gone forever' - City watchdog
The era of cheap credit may be over forever, the head of City regulator the Financial Services Authority said today. Hector Sants said he believes the financial markets will never return to the practices prevailing before the global turbulence sparked by last summer's crisis in the US sub-prime mortgage market.
Posted by uncle chris @ 07:33 AM (605 views) Add Comment
8 Comments
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1. Rich413 said...
Every bubble is created by an unforseen innovation. The next one will be caused and created by something Hector Sants cannot yet predict or see. It may not be caused by packaging up credit and passing it on but something else will cause it. In free markets assets have valuation cycles and bubbles - get over it!
2. hpwatcher said...
I just hope that it is finally over.
3. Borisina said...
Jee Whiz. Why am I not convinced with regard to these bankers. They made millions from this. When it all went wrong they had a bail out so of course they will do it again. They need rehab to stop. Every time they feel the need to urge someone to lie to buy, a guardian angel should come out from the corner and send some volts of electricity through their skulls to gently dissuade them. Not enough to kill them of course but enough to give them pause for thought.
4. harold said...
"I just hope that it is finally over"... until the next time the scoundrels can get away with it. Will we never learn?
5. Landofconfusion said...
I sincerely hope that this will never happens again.
> 2. harold said...
>
> ... until the next time the scoundrels can get away with it. Will we never learn?
They will most likely think of another over-complicated and poorly understood way of 'making' money and it will all happen again. Greed makes the world go round.
6. cyril said...
The FSA has shown itself to be utterly useless so why does anyone take any notice of hector Sants?
Of course cheap credit will be back - in about 10 years time after the crash.
7. dbnazz1 said...
Well, that should be good for jobs in the city. NOT!
8. whiteknight said...
Surely banking won't go back to the 3 - 6 - 3 rule ...
Borrow at 3 %
Lend at 6 %
Be on the golf course by 3 O'clock
?