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Posts posted by nicebuyer

  1. Surely 2.5k a week (figures mentioned in the article) is still considered a lot of money even in that there fancy London.

    Not in my experience no. I know a few people renting, all paying between £2k-£3k. It's not much different to a mortgage really. £600k house, £150k deposit, £450k mortgage required, what's that £2.5k? Maybe £3k?

  2. No, all we do by supporting dead institutions is keep the body moving.

    Let a bank fail... so what... theres a short time of total panic, then its over and life goes on. if it really is a house of cards,then it will fall anyway. better let it go early than later.

    :) If only it were that easy.

    I simply cannot accept that it's in the best interest of the public at large or the UK economy to actively pursue a policy of letting banks go to the wall on the basis that the panic will be short term and that they might fail anyway. That's a very simplistic argument for a very complicated and potentially devastating problem.

  3. This is another topic that astounds me. What's so funny about people losing their money? I don't care how stupid someone has been, I don't want to see people on the streets because of their stupidity. It's sad, not funny. There's a real schadenfreude going on in these forums. Reveling in other people's misfortune is not nice.

  4. From what Ive seen, propping up banks in the US was a major factor in the prolonging of the depression, it seems the depression ended weeks after the policy was dropped and banks allowed to fail in numbers.


    the bit about the depression is some way in but makes for interesting comparison

    I won't watch it but I understand the point. It's especially true in a deflationary period, we're of course not there yet :) The 1929 point I made was that if we do nothing right now, if we wash our hands of the banks that's where we could go. If we were there already then of course the tactics and best course of action would be entirely different.

  5. Surely, in any industry, letting the weakest players go to the wall with strengthen the position of the survivors - eg/ with immediate increased market share etc.

    Endless propping up of failure gave us The Crock, British Leyland, Japanese zombie banks, pain without end.

    Sure, a number of other banks would benefit. I'm not sure how that's good for anyone other than the profiting banks though? It gives us, the consumer, less choice, it puts more power into the hands of a select few, it hurts those that, instead of spending their time speculating in the property market, saved and have their life savings with the bank, the economy suffers as a result which hits us in the pocket in the end.

    As I said, we could talk about how bad it would be for every one of us if the major banks went to the wall but none of us has the time.

    What we need to understand is that banking isn't like 'any other industry'. If Nike go bust what do I care? Apart from the poor people that lose their jobs society will continue.

    If HSBC/HBOS/Santander went to the wall the UK economy would go with it. Confidence in the market would be gone. I'd be fearful of another 1929 but this time over this side of the pond. Look at Northern Rock. When people thought it might go under did you see the reaction? And that's a tiny bank in comparison, it's main focus was on the mortgage market. Could you imagine the run if say HSBC was in trouble? I'd certainly get every last penny out of every bank I was with.

    The notion that a trimming down of the banking sector in this way is good for anyone but the suits and shareholders in the other banks (and even that is questionable if people lose all confidence in the banking sector) is ignoring the bigger picture.

  6. I know Knight Frank do cover the top end, but the size of the market must surely be quite small.

    Or maybe I'm just very naive to the wealth out there?

    Realistically, £2.5k PCM is not all that much in London, especially in areas such as Wimbledon (where I am). We've just sold and have decided to rent for a while to see what the market does. We want to spend around £2k but are having issues finding anything nice for less than £2.3k. We'll end up closer to £3k I imagine. You really don't get much for your money around here at the moment. It's actually got to the point where we're thinking of moving out, perhaps nearer Brighton or maybe Henley and renting there and traveling into London each day. We've just had a baby so the wife isn't working for a year so it might be a nice time to experience some clean air and find something a bit cheaper. :)

  7. It's a bit scary really. Not that I mind seeing a bank go to the wall, after all every other 'industry' we've ever had has gone to the all so why not banking? What worries me is that the Central Bankers and politians all seem to think the big banks are too big to fail. So they'll bail them out with tax payers money.

    NO! Let 'em fail! Why should I have to pay for some elses mistakes!! :angry:

    I've been reading through this forum and it's this kind of post that makes me marvel at just how carried away people can become. Okay, we'd all like house prices to drop a little but willing banks like HBOS to fall? I'm not sure you've thought this through have you? Forgetting, for one moment, all the people that would suffer directly due to job loss (and that's not just employees of any such bank) there are millions of others that would also be caught up through no fault of their own. Let's not get into exactly what would happen if HBOS went to the wall, or rather, was allowed to go to the wall, as that would take all day.

    Let's instead focus on why you would want all those people affected to suffer in such a way?

    I'm also astounded at the ignorance of a comment such as "every other 'industry' we've ever had has gone to the all so why not banking" or "What worries me is that the Central Bankers and politians all seem to think the big banks are too big to fail"

    It's amazing to me that someone that has hung around a forum dealing in financial issues has such little foresight into what might happen or the reasons why stability in one sector is preferred over another.

    Think about what you're saying before coming out with such nonsense.

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