hi paul,
sounds like a text book liquidity run on deposits.
lets see if BOE know how to play it to avoid systemic risks. they mismanage this "small one" and they are up to their ears with a "big" run on deposits somewhere else.
edit: did i ever mention i was a policy maker focused on banking risks 😛
Short run interest rates must come down pretty quickly.
Long run they should go up.
Fed's gobledegook of measured rate increases to control inflation has killed off the housing market but done little for inflation. Nice work by the Fed... :cheesy:
Governments and politicians don't mention tax rises any more to cool the economy off so every one pisses about with monetary policy of raising or lowering rates.
😈 Simple blunt instrument.
This is going to get a lot worse before it gets better. If they pay me £1000 an hour I may become their advisor as they certainly need some guidance and consultancy.
Dim wits the lot of em. When economies boom directors and central bankers take credit and when it goes ape **** they call it managing the crises - intentionaly in some cases. Can You Feel the Farce? Can certainly smell it.
These bodies are supposed to control and lead not having got us into this mess. Nice piece of regulation. Play it again so we can all see good banking in practice. Fed and ECB eases liquidity and Mervyn King BoE says nah to all that let's teach them a lesson. Too little action too late I think. Mervyn Kind if he doesn't do his job some one should kick him up the bum.
Some dim wits were talking about sub-prime market in US not effecting the real economy as sub-prime market only accounted for 3% of US Economy, and here in the financial centre of the world UK-London we are having a run on a bank. What the hell is going on here? Obviously situ is a lot worse.
😱
Some people are tipping banks as being good value and totally under valued. There has never been a better buying opportunity. Be interesting to see if they tip Northern Rocks shares eh?
Problem is no one is owning up to any exposure. It's all a wait and see. Who knows what assets are backed up or which assets are worth negative borrowings due to creative accounting.
I'm no accounting but how can anybody borrow on short term, buy highly risky instruments and claim they are assets. Effing Fockers the lot of em including controlling bodies and central bankers. Boing and Cisco still practice placing 3 year sales as total revenue acrued in current year as if contracts can not be cancelled. Can't remember what this practice is called but it is absolutely ludicrous. Enron may just be and exaggerated reflection of what lies beneath those murky waters.
🙄
As you can all imagine I'm a little upset at all the bull **** that has led to this.
Today has been a little better for me in the markets than last couple of days but it beggars the question how can the markets go up when there is so much bad news and risk out there? $100 bn dollars of bad debt and assets and nobody is owning up to who has what? They call it financial transparancy
😆 😆 😆 😈
We are at the cusp of a new era and it's still doom and gloom out there. In fact it's much worse but hey it's the weekend and let's party. Bankers can alway get into a hot bath and slash their wrists on a Monday...
😈
No disrespect to your position Jacinto...
