Hunt for £100m rogue trader after attack on HBOS share price

[threaded]

http://www.brasschecktv.com/page/187.html

[Diver]

Brilliant

A must see!

[ASB]

They have to get them by delivery date.

I remember a case where there was a new issue of bonds and the market shorted more than 100% of the bonds being issued! The issue was pulled and several got burnt fingers.

That's where #I was going really. So in a position like that they would have to buy in from somebody who was already long at the point the issue was pulled in order to close out. Very burnt fingers I suspect.

Personally I don't think there is any great problem with shorting things. For everybody who is short there is surely somebody else who is long. Net effect pretty much balances out in market terms I would imagine.

[Cowboy Bob]

I know of one young couple with two children. He was involved in a serious road accident in the states.
I won't go into the whole tale, but his insurance would only cover so much of the costs. corrective surgery they had to pay for by re-mortgaging.
They are now in a borderline position, he is still unable to work. she has a part time job but has to pay nursery fees for the children. his insurance runs out in three months and the state benefits will barely put food on the table, let alone cover the mortgage.
They face being out on the street with the children taken into care if things get any worse.

So, you know a couple who took out a huge loan to pay for the privilege of living in a house, the bloke went driving around the states without adequate medical insurance, and they took out another huge loan to pay for the consequences. I'm failing to see why the position they're in isn't mostly their own fault.

[bogeyman]

http://www.brasschecktv.com/page/187.html

Good find there Threaded!

"No price is too high for that sort of mature wisdom"

[AtW]

Net effect pretty much balances out in market terms I would imagine.

Yes it balances out in the end beacuse in the end everyone and everything dies anyway.

Shorting can create runs on company shares - this could lead to fatal consequences to the company, say if shares fall too much and they were use as a collateral for banks then banks may require the company to give more cash to them, or just refuse loans - pending merger can fall through because of run on the shares, it's artificial however in a climate of fear it can be fatal - for example hedge funds shorting Northern Rock certainly helped kill it.

[bogeyman]

beacuse in the end everyone and everything dies anyway.

Hurry up old boy

[Moscow Mule]

The BofE initially refused funding to Northern Rock. This was leaked and Robert Peston at the BBC reported that the Rock was in trouble and the run started.
After that the BofE panicked, realised it had made the wrong decision and found the Billions that the bank needed. Unfortunately it then needed over another 10 Billion to counter lost deposits.

Linky?

[Diver]

So, you know a couple who took out a huge loan to pay for the privilege of living in a house, the bloke went driving around the states without adequate medical insurance, and they took out another huge loan to pay for the consequences. I'm failing to see why the position they're in isn't mostly their own fault.

No, I know a couple who took out a small mortgage to purchase a house because the mortgage worked out cheaper than rented accommodation. the husband traveled to the US for a Seminar, he took the advice of an agent that $100,000 dollars medical insurance would be more than adequate.
Then had an accident and found that he required a further $85,000 to cover the medical bills that the insurance did not cover.
The accident involved him being crushed against a wall by an unlicensed uninsured teenager.
I fail to see where he, his wife or his children are at fault.

Please explain!

[HairyArsedBloke]

There is a strong correlation between UNIX/Mac lovers, Labour supporters and ignorant, self-righteous tossers. Explaining the causal relationship is left as an exercise.