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

[Diver]

I'd say he was a lucky chap - doing that sort of thing is usually fatal.

FWIW he's probably got some sort of miss-selling/bad advice claim against the agent. $2M USD is the minimum I would go with. I'm not sure where I get that figure from, maybe the FCO.

The insurance covered him for med transport and return to uk, it covered him for medical treatment. It did not cover him for the extensive corrective/plastic surgery required to make his face look human again.

Always read the small print.

[Moscow Mule]

he took the advice of an agent

I'd say he was a lucky chap - doing that sort of thing is usually fatal.

FWIW he's probably got some sort of miss-selling/bad advice claim against the agent. $2M USD is the minimum I would go with. I'm not sure where I get that figure from, maybe the FCO.

[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.

[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!

[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?

[bogeyman]

beacuse in the end everyone and everything dies anyway.

Hurry up old boy

[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]

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

Good find there Threaded!

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

[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.

[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.

[Diver]

Brilliant

A must see!

[threaded]

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

[Cyberman]

But what about their children? what about those that had to re mortgage due to illness, injury or redundancy just to keep a roof over their children's heads?
Remember, too much financial instability could put you on the streets as well.
Think about social unrest, rioting, burning cars and buildings.
What you advocate would hazard even those of us who believe that we are financially secure.

Well put Diver. Too many people do not have a clue about the potential side-affects of a major bank being allowed to fail in the UK, especially in this climate, because once one goes others will follow like dominoes. Lending is already drying up and once it hits businesses and they start going bust, job losses could run into many millions. Flippant commentators should be careful what they wish for!!

[Diver]

My heart bleeds.

Everyone who takes out a mortgage knows the risks and has had them explained to them. There seems to be a fallacy that if you have a mortgage you own your house. You don't. The bank does. And it can do with it as it wishes, including throwing you out.

Besides, what do you mean "had" to re-mortgage. Did anyone have a gun up against their heads?

I won't be on the streets. I ignored all the "advice" from the corporations to take out this mortgage and that pension blah blah blah (i.e. make them loads of profit), did my own sums, and decided to turn my back on the "normal" way of doing things. Now I fart in the direction of the credit crunch. It can't touch me.

Time to start learning Chinese...

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.

[Cowboy Bob]

But what about their children? what about those that had to re mortgage due to illness, injury or redundancy just to keep a roof over their children's heads?
Remember, too much financial instability could put you on the streets as well.
Think about social unrest, rioting, burning cars and buildings.
What you advocate would hazard even those of us who believe that we are financially secure.

My heart bleeds.

Everyone who takes out a mortgage knows the risks and has had them explained to them. There seems to be a fallacy that if you have a mortgage you own your house. You don't. The bank does. And it can do with it as it wishes, including throwing you out.

Besides, what do you mean "had" to re-mortgage. Did anyone have a gun up against their heads?

I won't be on the streets. I ignored all the "advice" from the corporations to take out this mortgage and that pension blah blah blah (i.e. make them loads of profit), did my own sums, and decided to turn my back on the "normal" way of doing things. Now I fart in the direction of the credit crunch. It can't touch me.

Time to start learning Chinese...