Monday, August 20, 2007

Top Swiss banker sees the Emperor in his new clothes

Top Swiss banker attacks US lending standards as 'unbelievable'

The only person to speak the truth regarding the reality of the situation. Note the comments: Stockmarket historian David Schwartz warned investors not be fooled by signs of recovery. "The truth is no-one knows how serious the financial problem in the US is, nor how it will unfold. We do know central banks are scared out of their minds," he said. Also, "In Germany, the state bank SachsenLB admitted that it had received a €17.3bn bail-out after its investment arm Ormond Quai racked up huge losses on US sub-prime debt. It had previously denied holding direct exposure to sub-prime."

Posted by swisstoni @ 11:14 AM (525 views)
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One thought on “Top Swiss banker sees the Emperor in his new clothes

  • “We’re certainly not at the end of the story. There are question marks surrounding the development of the American economy,” he said. “Something unbelievable happened. People who had neither income nor capital got credit with very attractive conditions. Now reality is striking back,” he said.

    Can easily substitute “British” for “American”. I am pleased that a top banker who is infinitely more knowledgable than myself about these matters essentially is equally baffled as me (and most people on this site) as to how can some people who seem to have absolutely no prerequisites for a loan get them?! Supply and demand my ass – stop 100% plus interest only, self-certified loans and this whole wretched house of cards will collapse!

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