Friday, November 2, 2007

Typical Friday Story for the Weekend

UK banks hit by credit fears

The City was swept by rumours today that another British bank was in trouble after Northern Rock indicated it was not the only bank borrowing from the Bank of England's rescue fund.

Posted by enuii @ 07:50 PM (1626 views)
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23 thoughts on “Typical Friday Story for the Weekend

  • Bradford & Bingley!?

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  • Strange isn’t it in terms of peoples understanding and perception of what is going on.

    To an average punter it must look like:

    1. There was a wierd and wonderful “run” on Northern Rock that seemed to come from nowhere. People queued oustide for a couple of days. Then it went away when the Chancellor “bailed it out”. Onto the next story.

    To the slightly more sophisticated punter:

    1. There was a credit market seize up that appeared to come from nowhere, but which they half understood in retrospect.
    2. The economy is considered generally strong and flourishing.
    3. There was a set of activity from the government and the lenders of last resort and the banks “fessed up to their problems” which allowed everybody to regain confidence and business as usual
    4. There are the glimmerings of a credit crunch mark 2. A second stage story. Maybe it wasn’t all as clear cut.
    5 …

    To the avid follower of markets, market psychology, human psychology , economics ..

    1. The credit markets FINALLY seized up based on a decade of the wrong political and economic managment and diastrous dumb short term behaviour from almost everybody. The trigger point could have been at almost any time and been almost any thing.
    2. The credit “crisis” appears like a slow motion car crash.
    3. Believes the economy is built on a pile of crap, credit and manipulated data that will disappear in the blink of an eye
    4. Believes that we will be lucky to make Christmas with the banks still open and a currency of our own left.
    5. Has taken up Mandarine and Russian as second and third langauges…

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  • The three big losers on the ftse today were barclays, bradford and bingley and rbos.

    Coincidence?

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  • Here is a thing . Confidential or “secret bailout”:

    First, there is no such thing.

    Second , if I am doing business with someone and then find out that they are propped up to the tune of x billion by the BofE, what are my standard legal recourses. I have of course been deceived.

    Third, because there is no such thing won’t i do what i essentially do with a credit instrument. If there are 3 differently rated tranches in an instrument, but everything is correlated, moving fast and i lack perfect information … wont i just assume the worst case. ie. that all are rated as the lowest. The implication being all banks are affected until the name of the part is published.

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  • Why is this information not made immediately public? Surely the public has a right to know who is borrrowing money from a public source. Or are UK individuals subjects and not citizens?

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  • Yep, you’re right we are all officially subjects of Her Majesties Government (currently run by NeuLiebor) and as such we are not entitled to truth and openness of any sort. Whether Citizens would fare any better I don’t know but my best guess is that the French have more rights to this title as they had a Revolution that wasn’t screwed up.

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  • “…most experts said the scale of the borrowing indicated one or more banks was using money from the central bank to prop up their businesses…”

    You said … Bradford and Bingley! Our audience said…….

    beeeeep beeeep , Sorry, itzzzzz Alliance and Leicester….

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  • 1. denzil said…
    Bradford & Bingley!?

    Denzil, I will tell you a true story. I sold my electric car G-Wiz to the BBC Topgear and they crash tested for safety in cooperation with MOT. The I purchased a replica 1932 great depression Vincent Riley from the internet. I wanted to look like ‘The Great Gatsby’ (fake bond scandle). The car miss-fired above 1500rpm, I changed the carbreta and all the of the electrics. No Joy. On Thurday, I resorted to using a dowsing pendulum over the engine. I ask: Is it electrical? No the pendulum said. I ask is it a fuel problem? No. it said. Then I ask the pendulum: Is it mecahnical? Yes, it replied, swinging wildly in a clockwise direction. Within 5 minutes, I found the propblem, now the engine is running as sweet as a nut.

    I just got the yellow pages out and used the same magnetic pendulum on the banks listed. Barclays was the only one where the pendulum swung wildley clockwise.

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  • Crumbs downwave, that must be a much better magnetic pendulum than that used by Tony Blair when he realised Saddam Hussein had weapons of mass destruction!

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  • I used the trusted ancient technique of bile-chanting and quite clearly audible through my dictaphone were the words “Baaaaaaaa …. r … claaaaaaays”.

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  • Does that pendulum work on can-bus & multiplex systems???? If so i wasted a fortune on diagnostic equipment .

    Bile-chanting 😉 LOL thats brilliant

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  • Downwave,
    where can I get one of those pendulums?

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  • @downwave,

    On a financial fundamentals basis I also thought B&B.

    However, I travelled home with my mate from Barclays Wealth Management on Thursday and he said there are lots of job cuts coming. “A regular comb-out of staff is about to happen”. This may or may not be related to the Guardian story.

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  • The butcher has confimed that Radio 4 has said that it is Barclays. Power to the pendulum,

    Paul well we are all of us ignorant on one subject or another, and you perhaps on most. Eat your words and go and study some quantum mechanics and quantum wave and string theory. Or even search google for dowsing. Do some homework for a change and keep your opinions to yourself until you Know. For 4 months numerous car experts had tried to locate the fault, without success. Now it drive like a rocket……………..

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  • Wealthyvagrant says:

    Even if it’s not Barclay’s that have a problem, they do now…..

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  • down wave, please don’t take my joke so seriously – I’m sorry if it offended, but if the technique was that good you’d see traders sitting at their desks with dowsing rods over copies of the FT.

    You don’t, so it most likely isn’t. Did you capitalize “until you Know” deliberately? If so you maybe take the new age divining stuff more seriously than most. Be prepared for people to gently ridicule such methods if you’re going to espouse them in public circles.

    Nothing wrong with thinking laterally about a problem though – engines and ailing banks included! Anyway I can’t say why exactly but I think it is Barclays – rumours have been drifting about them for months now.

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  • Down wave,

    please tell what was causing the fault I’m dying to know.

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  • >>please tell what was causing the fault I’m dying to know.

    Gimps in the carb, I expect.

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  • Paul, Hoyo & Denzil. The fault was a 10 thousand of an inch wear in the top bearing of the cam that operarates the contact breaker points in the distributer. Above,1500 rpm the rotation went pear shaped causing the points to intermitantly fail on opening and closing.

    Paul, I agree about dowsing, At least it is on a yes/now routine 50% odds of acuracy, whereas, if you take advice from a third party at best, it is only likely to be about 25% accurate, in the case of a banks, estate agents and mortgage brokers, well we will see just how inaccurate the have been in the comming months..By the way, I had a friend that had a drill rig for water wells for farmers in Wales. He always dowesed, for water, depth and quality.

    If I had used the pendulum 4 months back, it would of saved me buyin, HT coil, capcitor, points, fuel pump, plugs, leads ,distributer cap and so on.

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  • Paul, Just one more thing, concerning the G-Wiz car, I woke up one morning from a dream wherein my electric car was involved in a serious accident. I could not wait to sell it and put it on the internet at a knocked down price. The BBC telephoned and I agreed to sell it to them, they said that they wanted it for an emplyee to use to get to the office. If they had told me that they were going to crash test it for safety purposes in conjunction with the department of transport, I would have give them a big discount. I am just heppy that I did not sell it to a member of the public, if they had been injured in this doomed car, I would have had difficulty living with that.

    I yesterday’s Telegraph, there was a report tabout one of them catching fire. The company has recalled 629 for fitting of fire preventive materials under the passenger seat. Well, the telegraph got ot wrong it is 628.

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  • Who ever fitted the points should of picked up on that down wave 😉 still what you’ve done to it was never a bad thing to do on a thirties car from a service point of view anyways 🙂 sorry off topic

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