GFC 2

[stacks]

I try (obviously in vain) to try and keep abreast of things, but I just can't work out how everybody loses in this scenario.

When loans dont get paid off - noone wins. If for example, Greece defaults, plenty of banks will lose money on Greek gov bonds, loans to Greek people, businesses etc. This will have knock on effects for all interrealated financial products/entities and worst case, freeze up banks lending money while they work out who is exposed and not safe to lend to.

Who is winning? Who is getting the losers money? If the solution to all of this is to keep printing more money while trying to balance that against the risk of hyperinflation or deflation...who is the printed money going to?

It will go to banks to shore up their balance sheets to help contain losses and prevent the freeze of lending by banks

WHO has the bank account that's getting bigger off taxpayer funded bailouts?

When we've answered that, can someone please explain how it's not cheaper for the world to go to war with them and take it all back? Seriously. Where is it going and why can't it be recovered?

It's gotta be cheaper to kill them. Wish I was kidding.

You cant go to war with a bank. The problem is all the large banks are so globally connected now, 1 falls, it could bring a lot more with it. Look at what happened when Lehamn Bros went down. And JP Morgan have recently shown that it has been business as usual since then.

 

[numbercruncher]

I try (obviously in vain) to try and keep abreast of things, but I just can't work out how everybody loses in this scenario.

Who is winning?
.

Central banks and the Men who they serve in the pursuit of World Domination

 

[Dowdy]

Just watched this clips about hyperinflation in Germany.

Very interesting

 

[MrBurns]

FTSE ands DAX both down over 100pts so far..........

 

[Glen48]

Glad I got into Face book IPO in time feel much safer now..

 

[MrBurns]

Glad I got into Face book IPO in time feel much safer now..

You can complain on twitter

 

[MrBurns]

The market up again today, are people mad ?

 

[young-gun]

The market up again today, are people mad ?

Another rally without legs. The volatility seems to return as stimulus wears off. Interesting to see what the US does over night. Don't worry MB I don't think you're missing much

 

[MrBurns]

Another rally without legs. The volatility seems to return as stimulus wears off. Interesting to see what the US does over night. Don't worry MB I don't think you're missing much

I dont think so either I wouldn't be in this with your money

 

[young-gun]

I dont think so either I wouldn't be in this with your money

hey you never know, my $200 could go a long way.

 

[DB008]

Greek Euro Exit Aftershocks Risk Reaching China

Greece, responsible for 0.4 percent of the world economy, now poses a threat to international prosperity as investors raise bets its days using the euro are numbered.
A Greek departure from the currency would inflict “collateral damage,” says Pacific Investment Management Co.’s Richard Clarida, a view echoed by economists from Bank of America Merrill Lynch and JPMorgan Chase & Co. At worst, it could spur sovereign defaults in Europe as well as bank runs, credit crunches and recessions that may spark more euro exits.

Bloomberg link

 

[Glen48]

I think every one knows all is lost just waiting for some confirmation, like a teenager waiting for the results of a pregnancy test.

 

[MrBurns]

Greek Euro Exit Aftershocks Risk Reaching China
Bloomberg link

Better send Gillard to Greece she can dole out the cheques, that should fix it

 

[numbercruncher]

The Bank note printers can fix it

De La Rue reported financial results this morning, but chief executive Tim Cobbold wouldn't be drawn on whether Athens had asked his firm to prepare for a new currency to be issued.

Cobbold said:


There are 200 countries in the world. Every country doesn't order every year. This year there are orders for customers we didn't supply in a previous year.

Looking at De La Rue's results, the company also told shareholders that it has "a strong pipeline of opportunities", with its order book 14% larger than a year ago. So someone's ordering new notes....

http://www.guardian.co.uk/business/2012/may/29/eurozone-crisis-spanish-banks

 

[basilio]

Worth getting a picture of what is happening is Spain as the financial criss grinds on.

Really ugly stuff.

News
World news
Spain

Bank bailout makes Spaniards question their future as euro agonies mount

Spaniards having to tighten their belts find it hard to stomach bailing out banks whose recklessness has brought them to ruin


Christina López is recently separated and has an 11-year-old daughter. She lives in a flat she can no longer afford, especially since she lost her job as a music teacher. Photograph: Ofelia de Pablo and Javier Zurita for the Observer

Luz María Reyes had her bags packed and was ready to leave. A bulging red suitcase sat on her double bed as she waited for the bailiffs to evict her and repossess the family's modest flat in the working-class Madrid neighbourhood of Aluche.

"I've sent my daughter and grandson to a friend's house. I don't want them to see this," Reyes, 52, said as she waited for a court official and his police escort to ring the doorbell and shatter her dreams of a secure future for her family.

As Spain marched ever closer towards Europe's biggest and most dangerous bailout, Reyes and many others were too worried about the damage that recession, rampant unemployment and austerity have brought to their lives to fret about the bigger picture.

Seven years ago a local savings bank persuaded Reyes, a cleaner, to take out a 100% mortgage to buy the flat for €195,000 (£157,000). The bank has since merged with half a dozen others, all of which had thrown bad money at property speculators, to form a sick giant called Bankia.

Last week, as Reyes waited for the bailiffs, Bankia was demanding €23.5bn of taxpayers' money to stave off collapse. That is €1,350 from each working Spaniard. Among other costs that need absorbing by the savings banks that made up Bankia are a €6.2m payoff to one senior executive who helped drive the bank to disaster and €14m to another.

http://www.guardian.co.uk/world/2012/jun/03/spain-euro-austerity-bailout

 

[numbercruncher]

Worth getting a picture of what is happening is Spain as the financial criss grinds on.

Really ugly stuff.

News
World news
Spain



http://www.guardian.co.uk/world/2012/jun/03/spain-euro-austerity-bailout

Maybe a glimpse into our future too hey ?


Interesting reading the comments on these articles like this one .....

Justice won't be done until we see bankers and real estate agents hanging from lampposts for ruining economies. I don't even know how real estate agents in particular are allowed to exist as a profession. A more lying, deceitful, smug, arrogant and useless bunch of pricks you'd be hard-pressed to find.

Why do we put up with them? And when do we say enough's enough?

Fair call really - RE agents what a farce of a profession - like a two day course that "qualifies" you to walk people through what can be the biggest financial decision/screw up of their lives.

 

[MrBurns]

Looks like it's going to get very ugly, not sure how long our claim to be a great economy will last.

 

[numbercruncher]

The Herald Sun arnt mashing thier words Today!!

Europe is headed inescapably for financial disaster and almost certainly a recession that will be worse and last longer than the one in 2008, which itself was the worst since the Great Depression of the 1930s. This euro looks like it will break up with catastrophic consequences for individual countries and the global financial system. Fear and loathing will feed on itself.

We face the very real threat of a triple disaster. Europe in utter chaos, the US in recession and a Chinese economy that's run out of steam.

http://www.heraldsun.com.au/business/terry-mccranns-column/disaster-looms-for-global-economies/story-e6frfig6-1226381511258

 

[MrBurns]

The Herald Sun arnt mashing thier words Today!!
http://www.heraldsun.com.au/business/terry-mccranns-column/disaster-looms-for-global-economies/story-e6frfig6-1226381511258

.......unfortunately sounds right.

 

[CanOz]

We are definitely getting closer to a bottom, even the media is triple doom and gloom....must be a matter of weeks now...

Edit: forgetting of course that the second leg down takes longer...



CanOz