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EmmaRoid

Goldman Sach Put Price On Credit Crunch

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This is news to me - I found 2 mentions but I think it deserves its own thread

http://news.bbc.co.uk/1/hi/business/7313637.stm

Credit crunch 'at $1.2 trillion'

Picture caption:Goldman says there is light at the end of the tunnel for investors

The credit crunch will globally cost $1.2 trillion (£600bn) according to a report from the bank, Goldman Sachs.

The report says 40%, or $460bn, of those losses will hit US banks, brokerages and other institutions.

Goldman estimates that US financial firms have already reported losses of $120bn since the credit crunch began.

Banks made huge losses on investments backed by US mortgages. That is now hampering their ability to loan money, which threatens US economic growth.

"US leveraged institutions have written off less than half of the losses associated with the bursting of the credit bubble," the report said.

"There is light at the end of the tunnel, but it is still rather dim," it added.

The credit crunch caused the near collapse of US investment bank Bear Stearns earlier this month.

The bank's clients - worried about losses on mortgage-backed investments - started to withdraw funds, forcing it to ask for emergency funding.

Days later JP Morgan Chase announced a deal to buy the company.

If US banks only hold 40%, who holds the rest? How much British exposure to the "US only Sub-prime problem"?

Edited by daiking

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Right, now I have a figure I will get my wallet. Do you want it all fives or in tens?

Dow is still down. Doomsday on the FTSE tomorrow. Keep those bankers away from high windows.

Only down -16 though (by BBC website).

I don't think we'll see significant falls for a few weeks now. May will be my guess - and it is just that, a complete guess. (I used the same strategy at the Cheltenham Gold Cup a week or so ago - with no sucess, so feel free to ignore me!) :lol:

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Right, now I have a figure I will get my wallet. Do you want it all fives or in tens?

Dow is still down. Doomsday on the FTSE tomorrow. Keep those bankers away from high windows.

But, but, but... HBOS put on 17% today, GS are saying there's light at the end of the tunnel, you boys will talk us into recession I tell thee. :rolleyes:

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Only down -16 though (by BBC website).

I don't think we'll see significant falls for a few weeks now. May will be my guess - and it is just that, a complete guess. (I used the same strategy at the Cheltenham Gold Cup a week or so ago - with no sucess, so feel free to ignore me!) :lol:

Difficult to say in this no backbone market but you may well be right... then again, you may not. Perhaps this will be a ledge for a few weeks now before more dire news. Think I will send my HBOS ISA repayment form in in the next few days or by next week if things settle a bit.

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But, but, but... HBOS put on 17% today, GS are saying there's light at the end of the tunnel, you boys will talk us into recession I tell thee. :rolleyes:

Whatever happened to those blokes in flasher macs standing on street corners wearing billboards announcing the end of the World? Did they all go and work in the City?

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Whatever happened to those blokes in flasher macs standing on street corners wearing billboards announcing the end of the World?

All called themselves CGNAO and posted their messgae on crackpot websites :)

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According to Bloomberg today the tally of losses so far is $195bn (sorry, can't find which story it was mentioned in).

$1.2tr is actually less than the total assets of JPMorgan Chase (£800bn-ish; again, I read this recently on Bloomberg). I mention that not to diminish the amount that may be written off, but because it means that JPM could technically buy up roughly 20% of the UK's housing stock on its own. These are big numbers.

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goldman.. owned by ?

so much interlinking of all this nowadays that sorting them tangled wires behind the telly is a breeze.

lets look forward to the collapse and wireless though hey :rolleyes:

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But, but, but... HBOS put on 17% today, GS are saying there's light at the end of the tunnel, you boys will talk us into recession I tell thee. :rolleyes:

i am sure we will see some more ups and downs before then, but the results of the court case on bank charges (due end July) is what I think will most likely bring uk bank shares right back down

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This is news to me - I found 2 mentions but I think it deserves its own thread

http://news.bbc.co.uk/1/hi/business/7313637.stm

If US banks only hold 40%, who holds the rest? How much British exposure to the "US only Sub-prime problem"?

This is just the beginning. It represents a mere 10% of outstanding United States mortgage debt. Even this small sum is more than the 200 billion or so of tier 1 capital owned by the western banks. It is good to note, however, that the great Goldman Sachs are no longer pretending that the losses will be contained to 100 to 200 billion as at first claimed. The unwinding of this leveraged collosus will destroy the banks that created it.

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  • 292 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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