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Realistbear

City Watchdog Fearful Of Euro Collapse

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http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7144835.ece

From The Sunday Times

June 6, 2010

City watchdog fears euro disaster

Financial Services Authority probes banks’ exposure to the eurozone as sovereign default concerns grow
Iain Dey
THE City watchdog is stress-testing Britain’s biggest banks over fears they could be hit by the growing financial problems of the eurozone.
A “risk map” of Europe has been drawn up by senior officials at the Financial Services Authority, examining potential problems on a country by country basis.
Banks have been asked to model a number of disaster scenarios, including Greece defaulting on its loans. Analysts estimate that British banks have a total exposure of more than £100 billion to Greece, Portugal and Spain alone.
Disclosure of the stress tests underlines how serious financial regulators think the eurozone crisis could become.
RELATED LINKS
Eurozone banks face new wave of loan losses
Europe launches credit ratings offensive as credit ratings agency prepare downgrades to BB and below
On Friday, Hungary became the latest country to spread fear across Europe when the new government warned that its predecessor had “falsified data” about the country’s public finances.

"Black Monday" may well prove to be, at the very least, the best case scenario. The G20 talks have collapsed. Sovereign debt is worse than any could have imagined. The Euro is tanking. What hope has the UK housing market got?

Deflation cometh.

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If Greece defaults I think it will trigger a tsunami, it won't end with Greece.

The money has gone, stress testing now is a bit late, they should have been doing these scenarios once the Euro was set up. You know be ahead of the curve.

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My fear is that they end up giving us 10p on the Pound in savings and those in houses will be better off as our savings are stolen but house prices, although they will collapse, will then be unaffordable by all of us whose savings are devauled 90 percent.

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My fear is that they end up giving us 10p on the Pound in savings and those in houses will be better off as our savings are stolen but house prices, although they will collapse, will then be unaffordable by all of us whose savings are devauled 90 percent.

If you think that is possible in our 'first world country' then you need to buy gold and silver! I don't think it will come to that without the collapse of democracy and the Euro default will not cause that - riots may be- food shortages even- but not outright collapse. The £ - It's only a currency!

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Returning back to Earth......................"They" are going to devalue the Euro by 20% ish..............then the £

Mike

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It's sad to see such a veteran poster on this site scrabbling around in the dirt looking for anything that might confirm the crazy thoughts originating from his Hob Nob-addled brain.

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It's sad to see such a veteran poster on this site scrabbling around in the dirt looking for anything that might confirm the crazy thoughts originating from his Hob Nob-addled brain.

Is this what they make hob-knobs from?

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http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7144835.ece

From The Sunday Times

June 6, 2010

City watchdog fears euro disaster

Financial Services Authority probes banks’ exposure to the eurozone as sovereign default concerns grow
Iain Dey
THE City watchdog is stress-testing Britain’s biggest banks over fears they could be hit by the growing financial problems of the eurozone.
A “risk map” of Europe has been drawn up by senior officials at the Financial Services Authority, examining potential problems on a country by country basis.
Banks have been asked to model a number of disaster scenarios, including Greece defaulting on its loans. Analysts estimate that British banks have a total exposure of more than £100 billion to Greece, Portugal and Spain alone.
Disclosure of the stress tests underlines how serious financial regulators think the eurozone crisis could become.
RELATED LINKS
Eurozone banks face new wave of loan losses
Europe launches credit ratings offensive as credit ratings agency prepare downgrades to BB and below
On Friday, Hungary became the latest country to spread fear across Europe when the new government warned that its predecessor had “falsified data” about the country’s public finances.

"Black Monday" may well prove to be, at the very least, the best case scenario. The G20 talks have collapsed. Sovereign debt is worse than any could have imagined. The Euro is tanking. What hope has the UK housing market got?

Deflation cometh.

Stagflation commeth

Or very high interest rates

Take your pick

:blink:

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http://www.housepricecrash.co.uk/forum/index.php?showtopic=144281&st=60&gopid=2554591entry2554591

Realistbear, on 04 June 2010 - 06:03 PM, said:

The reality is that everyone is "debasing" their currencies.

Unrelated to deflation:

"It is not uncommon for devaluation in the value of a currency to lead to lower prices and subdued demand. The dollar in the pocket simply buys a cheaper lunch because the restaurant cannot sell a more expensive lunch. As many of you know, I have never put a great deal of credence in the concept of a free lunch and neither do I believe you can inflate debt away through devaluation. The truth of the matter is that debt is real and you pay for it through lower purchasing power and when there is too much debt the risk is not inflationary pricing but rather the opposite."

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I'm always thankful that RB's posts never promote purchasing gold because if that day ever comes it'll ensure that quite a few of us will jump straight into our wellies before grabbing the garden spade to unearth the hoard prior to making that frantic call to Coininvestdirect to arrange its shipping to them.

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http://www.housepricecrash.co.uk/forum/index.php?showtopic=144281&st=60&gopid=2554591entry2554591

Realistbear, on 04 June 2010 - 06:03 PM, said:

The reality is that everyone is "debasing" their currencies.

It is indeed competitive devaluation going on. This includes the USD, except that it is just not devaluing quite as badly as the Euro and £ just now, but as against most of the Eastern countriesand the AUD it is doing very badly too.

IT SHOULD BE CALLED THE 'CITY DEAD-DOG' AS IT HASN'T NOTICED MUCH UP TO NOW!!

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Blimey only 35% UP vs the mighty USD in 8 years :lol:

Relative values have shifted a great deal in 8 years.

Purchasing power, relative to currency values, is the only measure by which to determine if a currency is worth more or less at any fixed point in time. E.g. you can use the purchasing power of the $ to buy goods in the marketplace for less in the US than in the EZ despite many of those goods having been imported in the US.

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Unrelated to deflation:

"Inflation and deflation are both monetary pheonomenon they have nothing to do with prices. Anyone who says otherwise is ethier a liar or a fool."

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"Inflation and deflation are both monetary pheonomenon they have nothing to do with prices. Anyone who says otherwise is ethier a liar or a fool."

Everything is measured in prices. Even gold.

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Stagflation commeth

Or very high interest rates

Take your pick

:blink:

The 'stag' part is already here as of June 2010. Is it deflation or deinflamation to go with it? Either way IR's are inflating away in the background coz debanks cannot debunk enough to get by no more.

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I'm always thankful that RB's posts never promote purchasing gold because if that day ever comes it'll ensure that quite a few of us will jump straight into our wellies before grabbing the garden spade to unearth the hoard prior to making that frantic call to Coininvestdirect to arrange its shipping to them.

I would be a gold bull at around $350-500.

ITMT I have to agree with this summary from the free lunch guru:

"It is not uncommon for devaluation in the value of a currency to lead to lower prices and subdued demand. The dollar in the pocket simply buys a cheaper lunch because the restaurant cannot sell a more expensive lunch. As many of you know, I have never put a great deal of credence in the concept of a free lunch and neither do I believe you can inflate debt away through devaluation. The truth of the matter is that debt is real and you pay for it through lower purchasing power and when there is too much debt the risk is not inflationary pricing but rather the opposite."

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Everything is measured in prices. Even gold.

I'm not a goldbug, RB.

"Inflation and deflation are both monetary pheonomenon they have nothing to do with prices. Anyone who says otherwise is ethier a liar or a fool."

Which are you?

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I'm not a goldbug, RB.

"Inflation and deflation are both monetary pheonomenon they have nothing to do with prices. Anyone who says otherwise is ethier a liar or a fool."

Which are you?

...I could be a fool ...but whenever I've lived in countries including this one in periods of high inflation ...prices go up ....usually with a link to the level of that inflation ...it could be a chicken egg situation ...but people used to load their freezers to hedge the food price rises and each houshold often had three freezers in the garage ....usually chest style.... :rolleyes:

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...I could be a fool ...but whenever I've lived in countries including this one in periods of high inflation ...prices go up ....usually with a link to the level of that inflation ...it could be a chicken egg situation ...but people used to load their freezers to hedge the food price rises and each houshold often had three freezers in the garage ....usually chest style.... :rolleyes:

of course.

But what if your money should have deflated by oh say 2% due to tech advances but the state inflates it so that prices stay static?

That's inflation + no price rises.

Course you might notice how much harder everything seem to be getting but it'll be hard to discover exactly why - the perfect theft.

Edited by Injin

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  • 260 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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