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Market Crash 'could Hit Within Weeks', Warn Bankers

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http://www.telegraph.co.uk/finance/financialcrisis/8721151/Market-crash-could-hit-within-weeks-warn-bankers.html

Insurance on the debt of several major European banks has now hit historic levels, higher even than those recorded during financial crisis caused by the US financial group's implosion nearly three years ago.

Credit default swaps on the bonds of Royal Bank of Scotland, BNP Paribas, Deutsche Bank and Intesa Sanpaolo, among others, flashed warning signals on Wednesday. Credit default swaps (CDS) on RBS were trading at 343.54 basis points, meaning the annual cost to insure £10m of the state-backed lender's bonds against default is now £343,540.

The cost of insuring RBS bonds is now higher than before the taxpayer was forced to step in and rescue the bank in October 2008, and shows the recent dramatic downturn in sentiment among credit investors towards banks.

"The problem is a shortage of liquidity – that is what is causing the problems with the banks. It feels exactly as it felt in 2008," said one senior London-based bank executive.

"I think we are heading for a market shock in September or October that will match anything we have ever seen before," said a senior credit banker at a major European bank.

Nothing like a bearish headline....

The fact that RBS are spiralling out of control is a bit worrying considering it's backed by the UK taxpayer it's almost an admission that the govt can't pick up the tab for RBS collapsing....

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http://www.telegraph.co.uk/finance/financialcrisis/8721151/Market-crash-could-hit-within-weeks-warn-bankers.html

Nothing like a bearish headline....

The fact that RBS are spiralling out of control is a bit worrying considering it's backed by the UK taxpayer it's almost an admission that the govt can't pick up the tab for RBS collapsing....

This is: Really Bad Sh*t

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http://www.telegraph.co.uk/finance/financialcrisis/8721151/Market-crash-could-hit-within-weeks-warn-bankers.html

Nothing like a bearish headline....

The fact that RBS are spiralling out of control is a bit worrying considering it's backed by the UK taxpayer it's almost an admission that the govt can't pick up the tab for RBS collapsing....

Wasn't their balance sheet something like a trillion quid?

Still, I'm sure they are OK, otherwise how could they afford to pay out bonuses roughly equivalent to the entire UK scientific research budget?

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The fox guarding over the hen house warns that the hens are in danger :rolleyes:

Looks like the Banksters want some more free money to play with. My only surprise is that they haven't tanked the market even more to give Mr Bernanke an extra shove towards his helicopter.

elicopter-ben-bernanke.jpg

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Wasn't their balance sheet something like a trillion quid?

Still, I'm sure they are OK, otherwise how could they afford to pay out bonuses roughly equivalent to the entire UK scientific research budget?

Nothing but a Bankrupt of England slush funded boiler room operation with the UK taxpayer as the mark.

Edited by OnlyMe

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Wasn't their balance sheet something like a trillion quid?

Still, I'm sure they are OK, otherwise how could they afford to pay out bonuses roughly equivalent to the entire UK scientific research budget?

"But last time you just nicked all the money."

"Heh - yeah, sorry about that. Don't worry, we won't do it again. Lesson learnt."

"What lesson?"

"Look over there - a shiny thing!"

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Well it's coming up to the September/October "danger zone".

Panic of 1907

Wall Street Crash

1987 crash

Black Wednesday (1992)

9/11 (and subsequent economic fallout)

Lehman Brothers

All occurred in those 2 months.

Me, I'm hiding under the duvet with my stash of beans and gold until November arrives.

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Tsk the magic printing press can pay for EVERYTHING....

NO

The magic printing press WILL pay for EVERYTHING.

mugabe_cameron.jpg

Just opposing sides of the same coin :)

Twins !!!

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http://www.telegraph...rn-bankers.html

Nothing like a bearish headline....

The fact that RBS are spiralling out of control is a bit worrying considering it's backed by the UK taxpayer it's almost an admission that the govt can't pick up the tab for RBS collapsing....

On the plus side, we'll be picking up the remainder of the float for pennies.

I noticed the other day that Nationwide have amended their internet 'sign on' page to a full page re-affirming the FSCS limits.

Nobody will be able to say they weren't given ample warning.

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Wasn't their balance sheet something like a trillion quid?

Still, I'm sure they are OK, otherwise how could they afford to pay out bonuses roughly equivalent to the entire UK scientific research budget?

At 28p a share RBS was worth 31 billion with a balance sheet of 1.5 trillion outstanding loans.

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Well it's coming up to the September/October "danger zone".

Panic of 1907

Wall Street Crash

1987 crash

Black Wednesday (1992)

9/11 (and subsequent economic fallout)

Lehman Brothers

All occurred in those 2 months.

Me, I'm hiding under the duvet with my stash of beans and gold until November arrives.

Tesco have 4 cans of Branston baked beans for £2.55 BUT if you buy 1 you get TWO free.

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At 28p a share RBS was worth 31 billion with a balance sheet of 1.5 trillion outstanding loans.

Assuming that they made those loans in a well-risked and assessed manner (and not, obviously, in a random free-for-all of 'we'll lend anything to anyone'), that means, through the magic of leverage, a huge profit for the shareholders/taxpayers! Excellent!.

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Assuming that they made those loans in a well-risked and assessed manner (and not, obviously, in a random free-for-all of 'we'll lend anything to anyone'), that means, through the magic of leverage, a huge profit for the shareholders/taxpayers! Excellent!.

I do know people who have bought RBS at about 20p in the past 2 weeks on the basis that they could double their money, or in 10 years be doing very nicely.

Another banking crisis in the coming months - where will that leave RBS's share price?

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I do know people who have bought RBS at about 20p in the past 2 weeks on the basis that they could double their money, or in 10 years be doing very nicely.

Another banking crisis in the coming months - where will that leave RBS's share price?

Hopefully in the bin along with RBS... question, does Fred still carry on getting his our money if RBS folds?

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I do know people who have bought RBS at about 20p in the past 2 weeks on the basis that they could double their money, or in 10 years be doing very nicely.

Another banking crisis in the coming months - where will that leave RBS's share price?

a lot of valeu investors are long in RBS and Lloyds, on the basis that they say UK banks are not that exposed to European and US banking losses, but that last point is rather nuanced, I understand...

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Hopefully in the bin along with RBS... question, does Fred still carry on getting his our money if RBS folds?

He sounds a complete sh*t doesn't he judging by reports in the papers today of people being allegedly fearful of him re pink wafer biscuits.

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I do know people who have bought RBS at about 20p in the past 2 weeks on the basis that they could double their money, or in 10 years be doing very nicely.

Another banking crisis in the coming months - where will that leave RBS's share price?

What happens to shareholders if it has to be completely nationalised? I'd assume that get essentially nothing..

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It will all get worse after the holidays.

Liquidity crisis?

surely bankers are supposed to have sufficent assets to cash in if they run out of liquidity?...thats what the capital ratios are for....theyd better get selling.

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Wow! MT has designer label beans in his bunker. There's posh!

I am mostly long Tesco at 1.44 per 4 pack. I like Sainsburys baked beans but recently they, along with Heinz, do not appear to be filling the cans to near the top and/or just have loads of liquid.

The Branstons appear to be adding more liquid nowadays but the Tesco deal is a good deal. If it was not for the Tesco deal I would have shorted the Branstons.

I should have applied for some research funding whilst Liebour were still in office.

I can also recommend waiting for Cushelle toilet rolls being on special in either Lidl or the Co-Op - you usually can buy for £6 or £7 one of their enormous 24 packs. I would never go short on Cushelle. :unsure:

Edited by The Masked Tulip

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Wow! MT has designer label beans in his bunker. There's posh!

Be like me and live on the wild side , remove all the paper labels from the tins.

You never know what you might get next!

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What happens to shareholders if it has to be completely nationalised? I'd assume that get essentially nothing..

Presumably so, then enter into some long legal fight with the Govt to get pennies on the shares X years in the future.

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  • 334 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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