Saturday, Sep 27, 2008
Our own dodgy banking practices will haunt us for years to come
The Independent: Be in no doubt, Britain too is in the centre of this storm
We should not underestimate the extent to which the City is suffering from the same contagion as Wall Street. There was stupid lending and greed-driven recklessness in London, just as there was in New York. Our banks might not have been involved in the disgraceful business of selling sub-prime mortgages to poor Americans who could not afford them, but they were more than happy to buy up the high-yielding financial instruments that were linked to the value of these bad loans. And our larger investment banks still have a lot of this financial toxic waste on their balance sheets.
Posted by nooneo @ 12:13 PM (381 views) Add Comment
7 Comments
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1. Stevie Dee said...
It seems like financial warfare. With the banks being frigates, destroyers or aircraft carriers. When only the aircraft carriers are left then the financial submarines will sink these too, one by one. I see world paradigm changing fast, Russia is the silent giant, read more, and you will see. One thing the United Kingdom's favour, is or language. This important "tool" or "weapon" will be our saviour as we know live in the information/IT Age. One other advantage, is that us Brits are the biggest pirates on the planet. Just look what our culture is capable of, akin to a compost heap. Our nation can bio-degrade any culture, Jews, Huguenots, Vikings, Anglo-Saxons, Muslims, Eastern Europeans, Hindu's, Sikh's, Afro-Caribbeans, Afican, Chinese and of course Celts. Britain is an amalgamation of all these cultures, and of a "tight-fit" situation and heritage we have much to benefit than most. Maybe we should call ourselves the "Jolly Roger" not the "Jolly Rogered", because our time will surely come.
(End of Rant)
2. enuii said...
'Our banks might not have been involved in the disgraceful business of selling sub-prime mortgages', wait a minute, the banks may not have sold them directly but plenty of mortgage brokers did. Also are we going to ignore all the 'liar loans', 'interest only loans', '125% loans' and BTL pyramid empires built on multiple loans based on the previously mortgaged properties letting income.
You do not have to look very far or poke very deeply to uncover the amazing levels of financial creativity that have been going on right under the bankers and regulators noses, we are also have a former chancellor and prime minister who has literally and conveniently turned his blind eye on all of this.
3. stillthinking said...
"Get the banks lending again"
Um. To whom ? We are all waiting for the self fulfilling prophecy of a complete house price crash in 2012....
4. Fred56 said...
I am beginning to doubt the whole thing. Not that the Americans have defrauded the world, that was a strategy and the profits from SIVs were repatriated to the US. What I doubt is the UK end of things. I don't see a lot of sub-prime lending here, yes some, but it's peanuts by comparison to the market as a whole. Property rices are falling but that's not a unique event. We can deal with it if we stop being sucked into the panic being beaten up by the American banks who are just engaged on the next stage of their fraud.
5. Stevie Dee said...
"
'Our banks might not have been involved in the disgraceful business of selling sub-prime mortgages', wait a minute, the banks may not have sold them directly but plenty of mortgage brokers did. Also are we going to ignore all the 'liar loans', 'interest only loans', '125% loans' and BTL pyramid empires built on multiple loans based on the previously mortgaged properties letting income.
You do not have to look very far or poke very deeply to uncover the amazing levels of financial creativity that have been going on right under the bankers and regulators noses, we are also have a former chancellor and prime minister who has literally and conveniently turned his blind eye on all of this."
Surely the man has had his reasons.. and secondly.. he is loyally British, or to our concern. Unlike the Americans, we stil have integrity!.. or politely put "potatoes that fit our mouths".
6. Stevie Dee said...
"Get the banks lending again"
Um. To whom ? We are all waiting for the self fulfilling prophecy of a complete house price crash in 2012....
No, you are.. Britian has potential.. always has done.. we have the Commonwealth. the US has mistrust.
7. Stevie Dee said...
God save the Queen!