Battered Banks Poised To Reveal If New Crisis Has Begun

[workingpoor]

http://www.theguardian.com/business/2016/feb/13/banks-enter-reporting-season-in-shadow-of-lehman-brothers

Fears that the banking sector is facing a new onslaught of pressures dominated markets last week. Global bank shares were sold off the index of major banking shares in the UK at one point hit its lowest levels since the depths of the recession and questions were being asked about the impact of low interest rates amid concerns about the possibility of a global economic slowdown.

While much of the focus was on big banks in the eurozone Deutsche and Société Générale analysts pointed out that the share prices of UK banks were already pricing in another global financial crisis when it hadnt even happened. So when the UKs major players reveal in the coming weeks how they have fared in 2015, they will be doing so in the most febrile atmosphere since the Lehman Brothers collapse seven-and-a-half years ago. Analysts will be looking for confirmation that another 2008-style crisis is not about to the grip the sector.

Edited February 13, 2016 by workingpoor

[msi]

In 2007 we were so close to a true reset and the Banks threatened financial armageddon to keep the BTL cycle going. Now they've got themselves out of it, they'll be happy to let it all burn.

To be honest I'm mad enough to watch it and not care if I'm caught in the firestorm. Am sick of it.

[interestrateripoff]

Well at least RBS has been "saved" so no need to nationalise it....

[eric pebble]

Well at least RBS has been "saved" so no need to nationalise it....

Saved? Propped up by us taxpayers... Yes - "Saved"!

[interestrateripoff]

Eric is your irony detector failing? ☺

[999house]

Saved? Propped up by us taxpayers... Yes - "Saved"!

Mate can you delete that you tube video. I cant bear that mans face everytime I scroll past a comment

[renting til I die]

Mate can you delete that you tube video. I cant bear that mans face everytime I scroll past a comment

You can turn off signatures. Just click on the x and chose to turn off one or all (you should watch it first though! if you haven't already!).

[Silverfinger]

Yes, I too have been waiting since 09/08/07, when LIBOR got its first hick-up, for a clearing thunderstorm to arrive. Instead everything got papered over and made much worse and even more unbalanced. We have to get it over with. Better now, than even later and worse. 9 years in, and house prices are still insane and stock markets are still at lofty levels while interest rates are near or below zero. None of this would have happened when left to its own devices. Houses would be dirt cheap and interest rates would be double digits, and the economies would already be on course to a healthy recovery by now.

Edited February 14, 2016 by Silverfinger

[winkie]

They don't want your savings they want your debt.....because they don't need savings to create debt...cheap debt doesn't create growth or an income.....devalued money is no good to anyone.

[Ah-so]

They don't want your savings they want your debt.....because they don't need savings to create debt...cheap debt doesn't create growth or an income.....devalued money is no good to anyone.

They don't need savings to create debt but they do need to retain a sufficiently high percentage of savings to balance the balance sheet and avoid going bust.

[spyguy]

They don't need savings to create debt but they do need to retain a sufficiently high percentage of savings to balance the balance sheet and avoid going bust.

Going by the number of UK banks that have gone bust over the last 10 years, that buffer needs to be a lot higher and the banks loans need to be a lot less risky.

The Boe / Basel have progressed the former.

There's not much sign of progress on the latter.

[bomberbrown]

You can turn off signatures. Just click on the x and chose to turn off one or all (you should watch it first though! if you haven't already!).

Thank you. That is really helpful.

[TheCountOfNowhere]

"Battered Banks Poised To Reveal If New Crisis Has Begun"

How very good of them.

...and...this aint no new crisis.

[TheCountOfNowhere]

The But Toilet Brigade must be s***ting themselves properly this time.

This no where to turn, weorst case scenario is the financial system crashes and no one has any money to pay them and the bankers just take evberything off them and start again.

As a creditor to the banks I'm happy to loose 30% if they loose 90%.

****k 'em, let them burn.

[GinAndPlatonic]

Mate can you delete that you tube video. I cant bear that mans face everytime I scroll past a comment

you can hide signatures

[“Nasty Piece of work”]

This shyte sandwich should have been eaten in 2007/8, instead TPTB have now been forced to eat from the now ripe Lunch box. I hope it hurts.

[TheCountOfNowhere]

I keep saying it...it's the railway mania all over again.

The MPs at the time were up to their necks in it....it wasn;t till the 2nd collapse that anything was done about it.

The banks shut, regulation was introduced and not all reopened.

The 2nd collapse was about 10 years after the first IIRC.

They made an example of a few MPs at the time, so I look forward to Osborne and Brown being arrested and tried publicly for their crimes.

[stormymonday_2011]

This shyte sandwich should have been eaten in 2007/8, instead TPTB have now been forced to eat from the now ripe Lunch box. I hope it hurts.

That shyte sandwich has been sitting around uneaten since the dot-com bubble bust in 2000.

[Bloo Loo]

Yes, I too have been waiting since 09/08/07, when LIBOR got its first hick-up, for a clearing thunderstorm to arrive. Instead everything got papered over and made much worse and even more unbalanced. We have to get it over with. Better now, than even later and worse. 9 years in, and house prices are still insane and stock markets are still at lofty levels while interest rates are near or below zero. None of this would have happened when left to its own devices. Houses would be dirt cheap and interest rates would be double digits, and the economies would already be on course to a healthy recovery by now.

I think they were hoping to "trade through" the crisis...what happened though, was nobody got sent to jail, no lessons were learned, and they carried on as before with their newly minted notes to play with.

[jiltedjen]

I keep saying it...it's the railway mania all over again.

The MPs at the time were up to their necks in it....it wasn;t till the 2nd collapse that anything was done about it.

The banks shut, regulation was introduced and not all reopened.

The 2nd collapse was about 10 years after the first IIRC.

They made an example of a few MPs at the time, so I look forward to Osborne and Brown being arrested and tried publicly for their crimes.

+1000

it's just history repeating. a massive mania.

recently the JP Morgan boss made a big show of personally buying millions of his banks shares.

That's exactly what happened in the 1920's/30' crash. It calmed the markets for a week or so, then they crashed anyway. I actually laughter out loud reading that.

It's not different this time, it never is.

the nature of a railway mania double bubble and double crash, is that between the two crash events people think 'oh we were right property never goes down!' And they double down. This time absolutely not holding back at all, balls out full leverage, they were proved right you can't loose on property.

Of course it just means the second collapse is all the more painful and serious. (Look at London)

Until we can lock human interference out of changing lending rules (triple entry book-keeping - block chain style rules) it will happen again in the future perhaps 50 years time.

it's just sad that on a human time-scale 10-20 years to be crushed by a bubble is a huge chunk of your life. especially when rents are high.

So we are victims really. But I guess finally seeing the light and the HPC will do a lot of healing.

Those who blindly joined in the bubble will loose a lot, even those who just thought they were buying one house. They will find themselves locked to a huge mortgage forever in negative equity.

While others who have lots of money to spend in the economy due to buying cheap houses drive the price of everything else up. Cars etc.

those who spunked it all up the wall are in for a very painful life. And frankly they deserve it.

At least with railway mania we were left with some useful links. You could argue that we are left with many more new builds, but frankly most need pulling down as not fit for purpose.

[winkie]

What they could do is change the money creation process.

Every new born be saddled with half a million of debt and the government gets to spend the deposit into the economy.

Isn't it what already happens now...except they don't become aware of the scale of their indebtedness till much older?......

[stormymonday_2011]

+1000

it's just history repeating. a massive mania.

recently the JP Morgan boss made a big show of personally buying millions of his banks shares.

That's exactly what happened in the 1920's/30' crash. It calmed the markets for a week or so, then they crashed anyway. I actually laughter out loud reading that.

It's not different this time, it never is.

the nature of a railway mania double bubble and double crash, is that between the two crash events people think 'oh we were right property never goes down!' And they double down. This time absolutely not holding back at all, balls out full leverage, they were proved right you can't loose on property.

Of course it just means the second collapse is all the more painful and serious. (Look at London)

Until we can lock human interference out of changing lending rules (triple entry book-keeping - block chain style rules) it will happen again in the future perhaps 50 years time.

it's just sad that on a human time-scale 10-20 years to be crushed by a bubble is a huge chunk of your life..

I think that JP Morgan share buying intervention was during the financial panic of 1907

https://en.m.wikipedia.org/wiki/Panic_of_1907

In fact US and other financial markets seem to have tottered from one crisis to another right up to the out break of the First World War. What bailed out the bankers was the creation of the Federal Reserve in 1913 and more importantly the Great War where JP Morgan made billions underwriting British and French war bonds. Salvation of the banks back then was quite literally bought by the sacrifice of the lives of millions in the trenches in Europe over a few years. If we escape with just a 20 year economic depression this time I think we will have got off lightly.

Edited February 14, 2016 by stormymonday_2011

[jiltedjen]

JP Morgan boss did the same in 1929 please see from 30 minutes onwards in this documentary:

[steve99]

+1000

it's just history repeating. a massive mania.

recently the JP Morgan boss made a big show of personally buying millions of his banks shares.

That's exactly what happened in the 1920's/30' crash. It calmed the markets for a week or so, then they crashed anyway. I actually laughter out loud reading that.

It's not different this time, it never is.

the nature of a railway mania double bubble and double crash, is that between the two crash events people think 'oh we were right property never goes down!' And they double down. This time absolutely not holding back at all, balls out full leverage, they were proved right you can't loose on property.

Of course it just means the second collapse is all the more painful and serious. (Look at London)

Until we can lock human interference out of changing lending rules (triple entry book-keeping - block chain style rules) it will happen again in the future perhaps 50 years time.

it's just sad that on a human time-scale 10-20 years to be crushed by a bubble is a huge chunk of your life. especially when rents are high.

So we are victims really. But I guess finally seeing the light and the HPC will do a lot of healing.

Those who blindly joined in the bubble will loose a lot, even those who just thought they were buying one house. They will find themselves locked to a huge mortgage forever in negative equity.

While others who have lots of money to spend in the economy due to buying cheap houses drive the price of everything else up. Cars etc.

those who spunked it all up the wall are in for a very painful life. And frankly they deserve it.

At least with railway mania we were left with some useful links. You could argue that we are left with many more new builds, but frankly most need pulling down as not fit for purpose.

''At least with railway mania we were left with some useful links''

Well what we will be left with is some broke people. Previous bubbles were often about doing something that lead to something useful but in a fully 'financialised' economy it can only be the price increase of something that is made/engineered and little else, housebuilding is just an appendage to the property bubble as we can see from the crapy new builds and flats purely built in London as Chinese/Russian/African dictator bit coins, just mirages of housing for the people, hence those two A-holes Osbourne and Cameron always look at the housing problem in terms of 'a shortage of mortgages' and cannot see the issue of supply as the main issue, nor can they see the mania nor the bankers behavior re mortgage generation over the last 15 years.

Edited February 15, 2016 by steve99

[TheCountOfNowhere]

+1000

it's just history repeating. a massive mania.

recently the JP Morgan boss made a big show of personally buying millions of his banks shares.

That's exactly what happened in the 1920's/30' crash. It calmed the markets for a week or so, then they crashed anyway. I actually laughter out loud reading that.

It's not different this time, it never is.

the nature of a railway mania double bubble and double crash, is that between the two crash events people think 'oh we were right property never goes down!' And they double down. This time absolutely not holding back at all, balls out full leverage, they were proved right you can't loose on property.

Of course it just means the second collapse is all the more painful and serious. (Look at London)

Until we can lock human interference out of changing lending rules (triple entry book-keeping - block chain style rules) it will happen again in the future perhaps 50 years time.

it's just sad that on a human time-scale 10-20 years to be crushed by a bubble is a huge chunk of your life. especially when rents are high.

So we are victims really. But I guess finally seeing the light and the HPC will do a lot of healing.

Those who blindly joined in the bubble will loose a lot, even those who just thought they were buying one house. They will find themselves locked to a huge mortgage forever in negative equity.

While others who have lots of money to spend in the economy due to buying cheap houses drive the price of everything else up. Cars etc.

those who spunked it all up the wall are in for a very painful life. And frankly they deserve it.

At least with railway mania we were left with some useful links. You could argue that we are left with many more new builds, but frankly most need pulling down as not fit for purpose.

Brilliant summary.

Love it.

JiltedJen, you will fit right in round here

I had some surry-ite tell me on Friday their house had doubled in priuce soince them bought it in 2009 and we were stupid not to get into property now.

I left the building

Edited February 15, 2016 by TheCountOfNowhere