Tuesday, Jan 27, 2009
A financial disaster of unprecedented magnitude
Bridgewater Associates, Inc: The British Question
"When we add it all up, we are concerned that the UK banking problem will be too big to save by the
British government and that the markets and the government authorities have still not fully added up
the picture".
Posted by cornishman @ 07:33 AM (983 views) Add Comment
7 Comments
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1. cornishman said...
"These losses are proving extremely hard to bear in the US, and if they are close to right they would appear near
impossible for the UK to bear."
"These numbers are astounding and dwarf the problems the US faces"
"On the other hand, nowhere in the major developed world are the problems more complex and
potentially out of the government’s control as the UK"
2. hpwatcher said...
Quite.
3. P. Riddy said...
Those who think this is limited to the UK are deluded. The derivatives market, legalized by Greenspan & Thatcher is over a QUADRILLION. Sell every car, bolt, blade of grass at face value, it won't be enough. Bankruptcy & devaluation are the only choices.
4. letthemfall said...
If Bridgewater think that there is a meaningful risk of the UK govt defaulting, why are they bullish on gilts in their concluding table?
5. mountain goat said...
Yes I think the question really should be if we can afford to save the banks, rather than any ideological economic viewpoint.
6. mountain goat said...
But it does depend on how bad this downturn gets. The worse the downturn the more the insolvencies the more bad debts on the banks books. Is GB in denial or just hoping for the best?
7. cornishman said...
letthemfall@10.12AM
- yes, being bullish on the gilts doesn't go with a likelihood of default, does it?
Maybe they are fairly sure the UK will be bailed out...
... but who by, I wonder?