Tuesday, March 4, 2008

What was that thing about prudence?

Credit Crunch: 'The Worst Is Still To Come'

The Chairman of the Treasury Select Committee, John McFall, has told Sky News he thinks the worst is still to come in the global credit crunch. Speaking on the Jeff Randall Live programme, he said a spell of "collective madness" had seen the banking industry ignoring risks and making investments they simply did not understand. Mr McFall said: "We've been consumed by greed. The banks have been investing in things they don't understand. "They've had young whizz kids to devise these complex products. "The investor has also thrown caution to the wind. The result is that we could be talking about one trillion dollars in writedowns because of this."

Posted by blank cheque @ 07:58 AM (478 views)
Please complete the required fields.

2 thoughts on “What was that thing about prudence?

  • happyrenterz says:

    Good post thanks. I think the outcome of all this will be some regulation of banks to try prevent a recurrence of these particular problems.

    Please complete the required fields.

  • “collective madness”

    Yessss. I hope he’s including the FSA and Treasury in that collective.

    Please complete the required fields.

Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>