Quote:
Originally Posted by Ethersync
They are unwilling to each other and to people in general because they do not know what their own CDS exposure is let alone their competitors. The cash they are hording may not even be enough to cover their own obligations.
The housing market is nowhere near the bottom right now. There will be a lot more bankruptcies and foreclosures before the bottom is reached.
Money is debt. The problem is too much debt in the system. Injecting more money into the system is only increasing the debt. It will only make things worse. Their solution only shows how desperate things are. It will will not work. It's a hail mary and no one is at the end of the field to catch it.
The UK will be in a full fledged depression before things start to get better. Mark my words 
Yes, that is the BS the government keeps repeating. It will not work out that way. The UK took IMF money around 1974 and they will do it again (if the IMF has any left at that point).
The pound is collapsing. This is not a good thing. In the short term it may help with exports a tiny bit, but nowhere near enough to dig the economy out of the hole it is in. It's like saying that having terminal cancer isn't the end of the world since you will save money on food. While true the patient is in extreme denial about the reality of their situation...
That I actually believe, but I think the quality of service will go down hill a lot. Wait times will go up and the government will cover less and less.
European banks are way more overleveraged than US banks. We're talking 30:1 and in some cases as high as 50:1. When I hear the European press blame America for the problems in Europe I find it hysterical. I would love to join them and point fingers, but unfortunately it's not true. What does America have to do with Swedish banks fucking themselves due to their exposure in the Baltics? ...or Austria, Switzerland, etc, etc... Things started falling apart in the US with the subprime mess. Europe's exposure in developing markets (Eastern Europe and Asia) is a much larger problem than the US subprime mess and the problems have only now just begun to surface. Add to this all the social obligations in Europe and you are looking at a very painful reality check for the average European.
The US is fucked, but Europe is fucked in every hole. |
there's a big difference between the property markets in the Us and UK. the UK is a tiny little island with a growing population, where in the case of property, demand outstrips supply. therefore i think we have another 5-10% max further drop, and then prices will start rising again. and when they start rising they'll pickup pretty quickly.
with regards too much money in the system, from what i've read (i'm no expert on this)the problem is that the libor rate is too high, and where in the past the government can control the ecconomy to some extent with interest rates, if the interest rate cuts are not being passed on because banks are paying too much interest in the first place, then the single biggest brake/stimulant to consumer spending is gone.