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Lepista

Second Bank Bust

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Roll back to 2008 - N Rock was bailed out. £20 bn was spent. The public, rightly, got quite worried.

Then we had the great banking crisis - UK PLC bailed out the banks to the tune of £200 billion.

Again, the public were mightily concerned at this huge sum, but over the coming months, things settled down, house prices started to rise again, even bankers got their bonuses (people moaned a little at that, but at least the crisis had been averted, and we can carry on with business as usual - just with a £200 billion debt around our necks.

We can even solve the national debt crisis of Greece, with no harm done. Surely that shows that we have taken the right road to recovery...?

Cue forward to today - things are pootling along, there are a few alarm sirens going off in the back of peoples minds, but no-one seems to be overly worried. sure, there are going to be a few job losses, we're going to have to "tighten our belts" a little, but we've got through the worst of it. Haven't we?

To summarise:

we are essentially at the same piont early in 2008, pre-crash, except for:

- We have an additional £200 bilion of debt

- Jobs losses are on the increase

- Interest rates are at an all time low

- Inflation rates are high, and predicted to be increasing

The next crisis is going to hit very soon. It will be at least of similar magnitude as the last crisis. So, what will be done?

- Make austerity cuts? Doubtful that this will be able to be carried out in time or of sufficient magnitude to have any impact on the fast-paced financial world;

- Drop interest rates? Not with rates already at 0.5% - droping only 0.5% won't help. Negative interest rates? would cause a stampede of peolpe getting their money out of the banks and stuffing it in their mattresses;

- Lots more money printing? As far as I can see, it's the only option left. How much this time? 200 billion? half a trillion? I wonder how the public will take that, now that they have seen the bankers carrying on as usual, reaping recod bonuses, at our expense?

Do people really think we are heading Japanese? all I can see is the abyss, and we're hanging on to the cliff edge by our fingertips.

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To summarise:

we are essentially at the same piont early in 2008, pre-crash, except for:

Yes but we did one thing right; we got rid of that one eyed snot gobbling tw@t and all those leftie economic vandals.

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Yes but we did one thing right; we got rid of that one eyed snot gobbling tw@t and all those leftie economic vandals.

True, but if DC and co continue the same policy, how will it have helped exactly?

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"Markets can remain irrational longer than you can remain solvent" - Lord Keynes.

The markets seems to have been behaving irrationally for the last 12-18 months. How much longer? Who knows.

It seems that none of the problems have been solved, uncertainty is at an all time high (all waiting on what the central planners will do next - QE2, bailouts, job cuts?)... how on earth can anyone plan for more than a few months, with any certainty, is beyond me. By trying to fix things, they're making it worse. :(

Edited by Traktion

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Logged on to a well known building society online banking this week and the opening message was a warning from them about the safety limit for money being 50K per person.

Wonder why they have decided to put that up now?

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Logged on to a well known building society online banking this week and the opening message was a warning from them about the safety limit for money being 50K per person.

Wonder why they have decided to put that up now?

Which building society? This could be important for a lot of peoples finances. I'd rather take matters into my own hands and withdraw my money and stuff it under the mattress than count of the govt. to give me my money back.

Edited by General Congreve

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Which building society? This could be important for a lot of peoples finances. I'd rather take matters into my own hands and withdraw my money and stuff it under the mattress than count of the govt. to give me my money back.

N

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Logged on to a well known building society online banking this week and the opening message was a warning from them about the safety limit for money being 50K per person.

Wonder why they have decided to put that up now?

I received the same warning, I'm with certain bank with a blackhorse in the logo. :huh:

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It's odd isn't it.

In Sept 07 (I think it was) you could smell the fear. Everyone foresaw disaster.

Now with the economic fundamentals worse in almost every aspect, the crisis is considered to be over.

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Yes but we did one thing right; we got rid of that one eyed snot gobbling tw@t and all those leftie economic vandals.

You DO REALISE that Gordon Brown was running with conservative economic policies don't you?

I makes me laugh when people go on about how "the tories will save us".

We've had 30 years of conservative government and the conservative obsession with keeping the rich rich through escalating house prices has destroyed the economy. So what do we need now? A tory government!

They say people get the government they deserve..... why do I have to get the government you idiots deserve?

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And how exactly, is DC continuing in Broon's footsteps?

Further QE was mentioned as a possibility. I hope he won't do it, but I think he will, to line the pockets of the banksters again, and if he does, he'll be continuing with Browns policy. (OK it gets dressed up as Mervs policy but we all know the reality).

Otherwise I agree, the policies of the new government appear to differ.

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Why would there be another bank bust in the recovery?

Why did we have one before when the country was doing so well?

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They offered me a 10k overdraft the other day, got less than 1k in my account and don't regularly pay in a salary. Insanity!

Haven't you learned yet -

"Banks SHARE information about their customers - supposedly "to prevent fraud/money laundering".

In fact on the other hand, they now use this info to 'market and target' people - just like it was all planned by big banking 'brother'!

Therefore they know exactly, every penny you have in other bank accounts - so they are 'targetting' you with 'lending/borrowing lures'.

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You DO REALISE that Gordon Brown was running with conservative economic policies don't you?

I makes me laugh when people go on about how "the tories will save us".

We've had 30 years of conservative government and the conservative obsession with keeping the rich rich through escalating house prices has destroyed the economy. So what do we need now? A tory government!

They say people get the government they deserve..... why do I have to get the government you idiots deserve?

Grief. Blind Labour tribalism.

The Tories in the past have allowed prices to crash back.

It was McMental who engineered this latest bubble, and tried to keep it inflated. He has been responsible for one of the largest transfers of wealth from the less well off to the well heeled.

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Logged on to a well known building society online banking this week and the opening message was a warning from them about the safety limit for money being 50K per person.

Wonder why they have decided to put that up now?

Nothing to see here. The FSA require all banks and building societies to periodically remind customer about the FSCS limits. They all do it every few months.

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  • 150 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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