Mortgage firm facing cash problems.
#1
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Mortgage firm facing cash problems.
Mortgage Firm Facing Cash Problems - Yahoo! News UK
There may be trouble ahead. I see a crash anytime soon.
Oh no it won't
Oh yes it will
Oh no it ...........
There may be trouble ahead. I see a crash anytime soon.
Oh no it won't
Oh yes it will
Oh no it ...........
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I don't think a property price crash is the issue any more - things could potentially get far more serious. Articles like this from Goldman Sachs are surely a bit worrying;
The great depression of 2008 – the mother of all depressions Functionpix Freelance News Pictures for sale Events Photographers Writers work
B&B and A&L look like they're in trouble - what happens when there's a run on a few banks? Government couldnt bail them all out - what would that do to confidence in the banking system?
Goldman’s forecast predicts further disastrous consequences for global economy, sighting numerous factors such as the cost of the war in Iraq, record oil prices, sub-prime defaults and growing unemployment.
“The potential for an economic implosion and subsequent world recession is huge and could surpass the biggest financial crash in history of that of the Great Depression”.
“The potential for an economic implosion and subsequent world recession is huge and could surpass the biggest financial crash in history of that of the Great Depression”.
B&B and A&L look like they're in trouble - what happens when there's a run on a few banks? Government couldnt bail them all out - what would that do to confidence in the banking system?
#4
I have a current account and mortgage with A&L. Why does it look like they are in trouble?
#5
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It was said that the problems began with excessive lending and a blatant disregard for cheap loans.
At least when it does happen all the doom mongers can say "I told you so"
Good luck
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Better start doing what the halfwits with Northern Rock accounts did, and start queing now.
And yes i do have an account with Northern Rock........... still.
All monies in all banks are safe.
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Because he reads IFAs opinions on the internet and doesnt have an opinion of his own Hes been doing this for the last 2 years and fast becoming the new PSL of housing/finance threads
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#9
Really? Say Northern Rock go under, and are followed by Paragon, B&B and A&L... Barclays are also under pressure at the minute. The FSCS doesn't have the reserves to cover 18 billion of NR deposits, so where would they get the extra 200 billion to cover the rest.
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If the Bank/Banks went bust and people lost their money, it would plunge the UK into a mass recession. Something the Government will want to avoid at all costs.
#11
Agreed that they have promised to 'guarantee' deposits up to 35k. What happens if they actually need to find 200 billion to uphold these guarantees? There isn't a big pot somewhere with 200 billion in it. If a couple of the big banks do go under our economy will be foobarred for the next 7-8 years anyway, and will be further foobarred if the govt tries to hand over the cash that it has 'guaranteed'
#12
Am I right in thinking that these banks who are supposedly in 'crisis' simply dont have enough fluid cash to continue lending it out as fast as they have?
It's not as if they've lost any of their own (or others) money (other than off their share prices). Right?
PS I work for a large British bank.
It's not as if they've lost any of their own (or others) money (other than off their share prices). Right?
PS I work for a large British bank.
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Am I right in thinking that these banks who are supposedly in 'crisis' simply dont have enough fluid cash to continue lending it out as fast as they have?
It's not as if they've lost any of their own (or others) money (other than off their share prices). Right?
PS I work for a large British bank.
It's not as if they've lost any of their own (or others) money (other than off their share prices). Right?
PS I work for a large British bank.
B&B said at the start of the NR crisis they were safe as they had enough liquid money to keep them going until the end of the year. Clearly the credit crisis has lasted longer than they expected, so be interesting to see what happens to them. They've just sold some assets to get some more liquid cash today as it happens....
As mentioned above as well, a guarantee on your savings is a bit false if this essentially cannot be honoured, which would almost certainly be the case if a few BSs/banks did go under.
Last edited by Petem95; 20 November 2007 at 03:03 PM.
#15
Am I right in thinking that these banks who are supposedly in 'crisis' simply dont have enough fluid cash to continue lending it out as fast as they have?
It's not as if they've lost any of their own (or others) money (other than off their share prices). Right?
PS I work for a large British bank.
It's not as if they've lost any of their own (or others) money (other than off their share prices). Right?
PS I work for a large British bank.
To put it more simply - say you earn 900 quid a month and your interest only mortgage is 1000 a month. What will eventually happen?
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