interestrateripoff Posted August 25, 2011 Share Posted August 25, 2011 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.... Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted August 25, 2011 Share Posted August 25, 2011 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 Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted August 25, 2011 Share Posted August 25, 2011 Tsk the magic printing press can pay for EVERYTHING.... NO The magic printing press WILL pay for EVERYTHING. Just opposing sides of the same coin Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted August 25, 2011 Share Posted August 25, 2011 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? Quote Link to comment Share on other sites More sharing options...
MrFlibble Posted August 25, 2011 Share Posted August 25, 2011 The fox guarding over the hen house warns that the hens are in danger 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. Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted August 25, 2011 Share Posted August 25, 2011 (edited) 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 August 25, 2011 by OnlyMe Quote Link to comment Share on other sites More sharing options...
tomandlu Posted August 25, 2011 Share Posted August 25, 2011 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!" Quote Link to comment Share on other sites More sharing options...
'Bart' Posted August 25, 2011 Share Posted August 25, 2011 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. Quote Link to comment Share on other sites More sharing options...
Snugglybear Posted August 25, 2011 Share Posted August 25, 2011 "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!" Quote Link to comment Share on other sites More sharing options...
Pent Up Posted August 25, 2011 Share Posted August 25, 2011 Market Crash 'could Hit Within Weeks', Warn Bankers I'd say more like days if the Ben Bernanke doesn't produce the goods this weekend. Quote Link to comment Share on other sites More sharing options...
Spot Posted August 25, 2011 Share Posted August 25, 2011 Tsk the magic printing press can pay for EVERYTHING.... NO The magic printing press WILL pay for EVERYTHING. Just opposing sides of the same coin Twins !!! Quote Link to comment Share on other sites More sharing options...
R K Posted August 25, 2011 Share Posted August 25, 2011 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. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted August 25, 2011 Share Posted August 25, 2011 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. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted August 25, 2011 Share Posted August 25, 2011 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. Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted August 25, 2011 Share Posted August 25, 2011 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!. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted August 25, 2011 Share Posted August 25, 2011 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? Quote Link to comment Share on other sites More sharing options...
tomandlu Posted August 25, 2011 Share Posted August 25, 2011 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? Quote Link to comment Share on other sites More sharing options...
Si1 Posted August 25, 2011 Share Posted August 25, 2011 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... Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted August 25, 2011 Share Posted August 25, 2011 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. Quote Link to comment Share on other sites More sharing options...
Snugglybear Posted August 25, 2011 Share Posted August 25, 2011 Tesco have 4 cans of Branston baked beans for £2.55 BUT if you buy 1 you get TWO free. Wow! MT has designer label beans in his bunker. There's posh! Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted August 25, 2011 Share Posted August 25, 2011 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.. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted August 25, 2011 Share Posted August 25, 2011 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. Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted August 25, 2011 Share Posted August 25, 2011 (edited) 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. Edited August 25, 2011 by The Masked Tulip Quote Link to comment Share on other sites More sharing options...
Ruffneck Posted August 25, 2011 Share Posted August 25, 2011 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! Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted August 25, 2011 Share Posted August 25, 2011 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. Quote Link to comment Share on other sites More sharing options...
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