Wednesday, Sep 22, 2010
Bankster's game: heads I win tails you lose
Mortgagestrategy.co.uk: Banks squeezing building societies out of mortgage market
The government bailout of the banks has given them access to cheaper borrowing, providing them with a competitive advantage over building societies, says Datamonitor. It says there are some positive signs of growth in the mortgage market but due to the government bailout brought in at the peak of the financial crisis, the competitive dynamics have changed. Daoud Fakhri, analyst at Datamonitor, says most people would have expected building societies to emerge from the credit crisis in a stronger position than banks but it seems that although they didn’t engage in high-risk lending which contributed to the banking crisis they have still suffered.
Posted by quiet guy @ 09:03 AM (535 views) Add Comment
4 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. Crunchy said...
= More centralisation.
There can be only one financial master in our unified world of collectivism.
"Competition is a sin." "I always tried to turn every disaster into an opportunity."
- John D. Rockefeller.
2. str 2007 said...
I've a feeling Mark Wadsworth will know the answer to this question.
What was the cost of the bailout as it was ?
What would have been the cost of shutting down banks and nationalising the retail element and replacing all monies in accounts, business and domestic ?
I can't help feeling that allowing banks to fail and simply re-printing depositors money, wouldn't have had any effect on inflation etc. as you wouldn't have been printing 'more' money simply replacing lost money, which afterall was only in the main digital money.
There was/is a full infra structure in place to handle all day to day affairs.
I haven't read the above article but it strikes me that some building societies weren't all that prudent either, but it is an absolute travesty that those that were sensible are now in a worse position than those that were reckless.
Now what does that remind me of ....................
3. Crunchy said...
1. str 2007 said...Now what does that remind me of ....................
If an eleven a side team doesn't play well together, you try changing it into a seven a side team.
It's harder work, but not for the static goalkeepers who share the score between them.
A spectator sport for now.
4. inbreda said...
bailing out the badly run risk-taking organisations was only ever going to lead to the annihilation of the better run more prudent organisations.
More of the same anyone?