Credit Crunch Answers Anybody!

Nunu1


Joined: 31/03/2008
Posts: 536

Message Posted:
05/10/2008 06:22

Does anybody know or have the answer/s as to what the hell happend so quick with the Banks going bust!



It has to be a big controlled conspiracy by either a small party of people?



Anybody ever heard of the Luminate?......7 power people that control the World!?



Let me know if anybody has info on this!?



nunu

cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
05/10/2008 08:55

I do not believe it has happened quickly, it has been a time bomb waiting to go off for a couple of years.



People have been getting greedier by the year in what they borrow, beyond their means, and banks trying to cash in by lending more and more on the back of moderate economic growth.



The number of people complaining of high interest rates (5%) is crazy. when we first bought rate was 15% and we borrowed accordingly. It is the usual story of leaving the thinking head at home which would ask "what happens when the rates rise again"?



The banks by the same mode just thought the good times were here again and continued lending inflated amounts even when oil and gold prices started to rise 2 years ago.



I have no sympathy with either party, a sizeable minority of both were too greedy. It is a shame for the genuine borrowers who are being caught in the trap, they will have to curtail their spending for several years because I think the ramifications of this shambles will drag on for a few years.



Bring back the days when you had to apply for a loan and wait for a week while checks were carried out on your existing debts.

no1doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
05/10/2008 11:36

cyprusishome is dead right in what he says.

wynyardman



Joined: 15/12/2007
Posts: 4580

Message Posted:
05/10/2008 11:52

Save more, borrow less. A good starting point would be for Government to underwrite all bank



savings, instead of cticising the Irish Government for doing so. Create an EU level of pensions



for all EU qualifying members.



Halve the number of MPs.



A starting position......Just my view, that is all

ataturk


Joined: 09/09/2008
Posts: 712

Message Posted:
05/10/2008 12:25

Unfortunately the US and the UK have been putting off a recession for many years now and I have been telling everyone that a recession is on the way and the longer they try to put it off the worse it will be. Nunu1 there is definitely powers involved they are called the Illuminati.



This will give you a start but there is a dvd floating about called The Illuminati. You can get it from the DVD shop in Karaoglanoglu.



http://www.youtube.com/watch?v=3avVyf1OMjQ



George Bush and Tony Blair are the most notorious of them all

but-n-ben


Joined: 09/06/2008
Posts: 20

Message Posted:
05/10/2008 12:33

HEY WYN

it is a wee bit easier to guarantee three million savers money, than 65 million, you must hae too much, only joking mate

keep taking the efes

wynyardman



Joined: 15/12/2007
Posts: 4580

Message Posted:
05/10/2008 12:47

Nunu,



Google in The Illuminati and also The Bilderberg Group.



You will also find a wealth of information on such groups on http://www.Rense.com.



This is the conspiracy theorists site.



wyn

wynyardman



Joined: 15/12/2007
Posts: 4580

Message Posted:
05/10/2008 12:52

but-n-ben,



USD 700 billion is a good start. Cherrybobs to these boys!



Efes sales are sure to shoot up, as we all cope with this crisis!



Cheers,



wyn

Nunu1


Joined: 31/03/2008
Posts: 536

Message Posted:
05/10/2008 14:01

Thank you all for your comments /info. Cyprusishome, Wyn and AtaTurk interesting stuff and I agree with Wyn's points.



I too have been telling people for a long time...."The Sums dont add up!" the bubble will burst soon That was nearly two years ago so Cyprusis home and AtaTurk You two are right.



I just still dont understand where the money has gone from these banks!? They still charge bank charges, interest on loans, Mortgages. People put their savings with them. Even if say out of a 1000 mortgages say 100 default on their mortgage the bank still own/reposess the property and sell it to get back the difference......? Am I making sense? So WHERE has all the MONEY gone?



I think there has been mass fraud.....controlled or not?......ummm



nunu

MUSIN M


Joined: 26/06/2008
Posts: 1352

Message Posted:
05/10/2008 16:21

nunu

the banks trade in monies ,they sell us money ,if you do not have any goods for sale you go bust.



anyway when are you back at pbv ,i spoke to my cousin and he says all ok.



musin

Aussie


Joined: 17/06/2007
Posts: 657

Message Posted:
06/10/2008 00:10

Speaking as an ex Corporate Banker and arranger of commercial and development finance I have always believe the banking and finance system is always structurally precarious depending on public confidence for its survival.



As I see it there are many issues that contributed to this problem, a few of the main ones being.



1) Banks and other financiers borrow short and lend long - i.e they raise short term deposits from the public at call and for short terms and use interbank and professional markets to raise funds on a similar basis. However most of there land are long term such as housing loans commercial loans etc. This always causes problems in times of panic as commercial paaper and interbank money drys up depositors often want there money back at the first sign of a problem.



2) Competitive pressures to lower credit standards. In long boom periods most borrowers inevitably seek to borrow as much as they can irrespective of risk and whether they can really afford it. The banks etc really compete on price, service and the amount they will lend you (but in my experience the last is often the most important factor when it means someone can buy a property etc they otherwise couldn't). The Banks that will lend the most and have the easiest/ lowest credit standards win the most business and over time this tends to change the way other banks lend. In the short term higher profits share prices and bonuses result as even very poor quality loans take some time before they default so problems tend to be covered up for years.



3) Complex structures loan products derivatives, off balance sheet lending etc. The real risks involved was often conceiled by such means and it was difficult how exposed an individual Bank etc was when using such devices. Rating agencies provided a false sense of security by assigning AA and aaa rating to products that is reality still were potentially very risky



4) Falling asset prices - Much of the problem in the US started with falling house prices which meant that when loans defaulted banks suffered big losses and didn't fully recoup there loans





5) Domino Effect - The interrelationship of Banks Insurance Companies etc means that when one fails through intenbank lending insurance and derivatives suffer big losses and cant get access to borrow more money on professional markets.



This is just a few factors involved



Aussie

Aussie


Joined: 17/06/2007
Posts: 657

Message Posted:
06/10/2008 16:39

I also found this interesting article on George Soros and his predicions in his book The Bubble Of American Supremacy written 5 years ago which warned of most of the dangers of the system that were building up then and have now happened



http://www.smh.com.au/news/opinion/paul-sheehan/more-blind-alleys-besides-wall-street/2008/10/05/1223145172607.html





Aussie

Wilts Girl


Joined: 16/07/2008
Posts: 159

Message Posted:
06/10/2008 16:47

Nunu1 I did read an interesting article recently about terrorist groups buying huge quantities of shares in US banks and companies, maybe this is the face of modern terrorism? A sort of economic terrorism.

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
06/10/2008 17:08

Why worry about the credit crunch. If you have your health - don't worry about your wealth. Live for today...tomorrow never comes.

Aussie


Joined: 17/06/2007
Posts: 657

Message Posted:
07/10/2008 13:09

They just cut official interest rates in Australia by 1% to 6% the largest single drop since 1992 (a period when rates had been above 15%). Normally the Reserve Bank of Australia is pretty conservative raising rates as recently as March. It shows it believes there are plenty of problems ahead still.



Aussie

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
07/10/2008 13:29

Aussie - the problems are Global.

tarry67


Joined: 16/05/2008
Posts: 1053

Message Posted:
07/10/2008 13:35

What worries me is what happens if the banks crash here or in the uk. Would you get your money back. I know they have gaurantees now of £50k in the uk but here only 20,000 euro in a Cypriot bank but not offshore banks ie HSBC Turk bank etc.

cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
07/10/2008 13:52

tarry67,



I think the simple answer is NO!!!!



Where would the money come from to pay these fall back positions. The government here is bankrupt so where would they get several thousand lots of 20,000 euro.



In the UK, the government is all but bankrupt but even as a larger state than TRNC where would the cash come from to bail out one of the clearing banks?? Bottom line, why should the tax payer bail out private companies. At the end of the day whenever you invest money you always have the phrase "investment can go down as well as up". I am sure many will remember those great Labour Government days of nationalising anything that moved. Then looking at the millions that disappeared into bottom less pits. Already we have Northern Rock and may be HBOS being under some sort of government control, lots of jobs for the boys.



Remember the stuff written by Nostradamus about the "Yellow Peril". I am sure anyone who is watching developments in the far east will see the sleeping giants waiting to pounce. Airbus have a factory in China now, China has a large share of several finance companies, just heard on news of a Japanese company taking shares in one of the failing American banking enterprises.



There was a top level economist earlier making a most sensible speach asking why the so called G7 should be seen as the arbitrors of world finance. What about China, India and Brazil for three more. The financial power they now hold is phenominal so why are they not being engaged in discussion to lead the markets forwards.

Biker



Joined: 11/01/2008
Posts: 396

Message Posted:
07/10/2008 15:10

It is very simple really. It is all about -Confidence-

Banks and individuals were optimistic and borrowed more than thay could afford relying on the business in future and how property prices will continually rise. when some of the borrowers defaulted on payments then the bad loans have been parcelled and sold off causing the canfidence to plummet.

Therefore artificially inflated house prices starting coming down, this caused less certainty and the banks could not borrow from each other and lend to individual borrowers.

Therefore very little turnaround of cash in the markets.

Therefore companies having to tighten their belts and lay people off.

Stock market sharks short selling stocks they did not have to drive the share prices down. Therefore stock markets falling.

It is a domino effect now.

It should continue until property prices are corrected and the big boys swallow up the little boys. If only then they start practicing sensible banking procedures the confidence will return and things will start to get back to normal.

Normal as in normal inflation of house prices and being able to borrow only one can afford.

Obviously in the meantime a lot of people are making big bucks out of this situation and eventually the tax payers will pay for it.

Biker.

TimothyCadman


Joined: 13/12/2007
Posts: 1040

Message Posted:
07/10/2008 15:13

Very easy solution.



Gather all the worlds available money together, then divide it equally amongst the worlds population. Everyone equal!



Or just have one gobal currency.

Wilts Girl


Joined: 16/07/2008
Posts: 159

Message Posted:
07/10/2008 15:24

Sounds like you have communist tendancies Timothy!

flightholiday


Joined: 19/07/2007
Posts: 3217

Message Posted:
07/10/2008 16:26

Credit Crunch simple thoughts (not solutions) "the ten commandments" :



1] Try not to borrow.



2] Try not to lend.



3] Try to buy wisely (best price is not always cheapest).



4] Build good relations with those you buy from and supply.



5] Don't panic!



6] Don't worry about it but do think about what could happen and how best to protect yourself.



9] 7] 8] 9] 10] other peoples thoughts?

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
07/10/2008 17:17

But the worst is far from over. Our government is near broke. Tax revenues don’t even begin to cover public spending and this problem gets worse and worse every year. Once the downturn hits, tax revenues will fall dramatically. Income tax, corporation tax, stamp duty on shares and houses, all these government revenue streams will fall.

Meanwhile, the Government will be forced to spend more money on key services right at a time when the Treasury has less money coming through the door. Benefit payments will rise as more and more people become unemployed. Public sector workers – some of whom have already gone on strike this year – will demand higher pay to keep up with inflation. Not forgetting the cost of two wars we are involved. The warning signs are clear.

cyprusishome


Joined: 31/03/2007
Posts: 2381

Message Posted:
07/10/2008 17:20

no1doyen



By then there will have been an election and someone else will be getting the blame for the fourth world country UK will have become!!!!!

no1doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
07/10/2008 21:00

cyprusishome. You are so right

Mr Mac


Joined: 21/04/2008
Posts: 50

Message Posted:
07/10/2008 14:49

Royal Bank of Scotland shares plunge, UK is in a worsening recession, thousands of jobs at risk,can it go down hill anymore. What has to be done to bottom this situation out?