crash2006 Posted September 17, 2007 Share Posted September 17, 2007 Typical all the banks jump on the bandwagon of mbs, not knowing what they are getting into, they are just like sheep. Jumping onto this as they see the original bank who started this profiting from it, combine this with bad asset management its all the same. The BOE showing that it will bail out smaller banks and larger banks know because they are large would always get bailed out now, knowing this they will take on greater risk. Now they just need to get rid of the cluster of banks that are in trouble to start again. This can been seen in the US thrift failures, japanese banking problems, scandinavian bank failures, bond and share holders of banks are going to suffer the loses, as US non performing loans rises along side the UK we have been here before and will hit it again. Advice get out of anything related to bank and building company shares. Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted September 17, 2007 Share Posted September 17, 2007 They knew what they were doing. They were lending out money under terms and at levels they would never have done with their own deposits. They played the market hoping other suckers would take the hit and they would be left unscathed. It worked for a while. If you look back the green light for most of this was the 2005 rate cut. After that magically lending multiples rocketed, there were enough eager/deperate purchasers suddenly on the market to make a big push worthwhile - a classic confidence trick, exactly what the rate drop was intended to do. It has of course backfired spectacularly. Quote Link to comment Share on other sites More sharing options...
crash2006 Posted September 17, 2007 Author Share Posted September 17, 2007 They knew what they were doing. They were lending out money under terms and at levels they would never have done with their own deposits. They played the market hoping other suckers would take the hit and they would be left unscathed. It worked for a while.If you look back the green light for most of this was the 2005 rate cut. After that magically lending multiples rocketed, there were enough eager/deperate purchasers suddenly on the market to make a big push worthwhile - a classic confidence trick, exactly what the rate drop was intended to do. It has of course backfired spectacularly. The same thing is repeating again we were meant to have a bank crisis in 2005 and as you said they lower the rates to give hope and the crisis is going to be a lot worse. Look at the above crisis i have pointed out and they all have one thing in common. Quote Link to comment Share on other sites More sharing options...
crash2006 Posted September 17, 2007 Author Share Posted September 17, 2007 the tax payers have voted by taking the money out BOE have not taken this on board and have pumped money into NR = failure. Quote Link to comment Share on other sites More sharing options...
crash2006 Posted September 17, 2007 Author Share Posted September 17, 2007 peopel should read up about the list of bank crisis i have pointed out and the only outcome. Quote Link to comment Share on other sites More sharing options...
Layman Posted September 17, 2007 Share Posted September 17, 2007 the tax payers have voted by taking the money out BOE have not taken this on board and have pumped money into NR = failure. The BOE has lent out our (tax payers) money at a very good (ie high) interest rate. Nowt wrong with that, is there?! Quote Link to comment Share on other sites More sharing options...
winkie Posted September 17, 2007 Share Posted September 17, 2007 The BOE has lent out our (tax payers) money at a very good (ie high) interest rate. Nowt wrong with that, is there?! Nothing wrong with that, if they get it back...When will they get it back? In 25 years time? Quote Link to comment Share on other sites More sharing options...
crash2006 Posted September 17, 2007 Author Share Posted September 17, 2007 The BOE has lent out our (tax payers) money at a very good (ie high) interest rate. Nowt wrong with that, is there?! There is every time a central bank bails out banks then we enter recession however this time we are going to into a depression, there is no choice or enter hyperinflation which this country can not do or get out of. Banks runs around the world have started this week, investors pile out of bank, save you cash for the depression. Quote Link to comment Share on other sites More sharing options...
crash2006 Posted September 17, 2007 Author Share Posted September 17, 2007 As i said before may times get out of any shares that are connected to banks and properties companies.the Problem is defence stocks we have sold our water companies etc.. to foreign companies they will own are water, look at whats happening in the energy market large companies merging preparing for a massive slide. Quote Link to comment Share on other sites More sharing options...
oracle Posted September 17, 2007 Share Posted September 17, 2007 The BOE has lent out our (tax payers) money at a very good (ie high) interest rate. Nowt wrong with that, is there?! there is when you cannot get it repaid. Are the BoE going to take all the foreclosures as collateral?? ...government seized(and sponsored) new social housing plan???? Quote Link to comment Share on other sites More sharing options...
Guest muttley Posted September 17, 2007 Share Posted September 17, 2007 Banks runs around the world have started this week, investors pile out of bank, save you cash for the depression. How do you take your mortgage out of the bank? Quote Link to comment Share on other sites More sharing options...
Dingleberry Posted September 17, 2007 Share Posted September 17, 2007 How do you take your mortgage out of the bank? Dynamite? Quote Link to comment Share on other sites More sharing options...
crash2006 Posted September 17, 2007 Author Share Posted September 17, 2007 (edited) How do you take your mortgage out of the bank? You can't, they will not allow you too, it will be past on to another bank/s and they will profit from it. lets say you have 100k banks goes down the other banks buy your mortgage for 50k, they will never allow you to buy it 50K. Edited September 17, 2007 by crash2006 Quote Link to comment Share on other sites More sharing options...
Guest muttley Posted September 17, 2007 Share Posted September 17, 2007 You can't, they will not allow you too, it will be past on to another bank/s and they will profit from it. lets say you have 100k banks goes down the other banks buy your mortgage for 50k, they will never allow you to buy it 50K. Aah, so a mortgage is an asset to a bank. Am I right in believing that banks have increased the volume and the value of these assets in recent years? In fact, have the banks not "played a blinder"? All the new, and in some cases, old mortgage slaves will be fuelling the banks profits for years to come. I can't see a cluster of banks disappearing at all. Quote Link to comment Share on other sites More sharing options...
MrBenn Posted September 18, 2007 Share Posted September 18, 2007 Aah, so a mortgage is an asset to a bank. Am I right in believing that banks have increased the volume and the value of these assets in recent years? In fact, have the banks not "played a blinder"? All the new, and in some cases, old mortgage slaves will be fuelling the banks profits for years to come. I can't see a cluster of banks disappearing at all. As long as the mortgage debt continues to get paid off, then the banks are quids in. What happens if a large number of mortgagees default? Quote Link to comment Share on other sites More sharing options...
crash2006 Posted September 18, 2007 Author Share Posted September 18, 2007 As long as the mortgage debt continues to get paid off, then the banks are quids in.What happens if a large number of mortgagees default? the problem now is if there is a large default the government has said it will back it, meaning they will make the currency worthless. Quote Link to comment Share on other sites More sharing options...
stonethecrows Posted September 18, 2007 Share Posted September 18, 2007 I got asked yesterday about the position of Nr mortgage holders-can they make an offer to 'buy their own debt off' I wonder? Quote Link to comment Share on other sites More sharing options...
crash2006 Posted September 18, 2007 Author Share Posted September 18, 2007 I got asked yesterday about the position of Nr mortgage holders-can they make an offer to 'buy their own debt off' I wonder? no Well was reading a post about how the boe was supporting the savers but not supporting the share/bond holders, if they dont support these share holders whats stops other share holders from selling shares in other banks? Quote Link to comment Share on other sites More sharing options...
crash2006 Posted December 22, 2008 Author Share Posted December 22, 2008 noWell was reading a post about how the boe was supporting the savers but not supporting the share/bond holders, if they dont support these share holders whats stops other share holders from selling shares in other banks? oh the days Quote Link to comment Share on other sites More sharing options...
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