Reply to: Financial chaos ?

[DimPrawn]

Though now there are far too many chiefs for the number of indians, you can see that it wont be far off.

Give the New Labour work permits dept a call. 10,000 work permits in the post by 5.00pm

Sorteeeeeeeed.

[Pickle2]

"At least 10,000 jobs could be lost in the next 3 months", doesn't look too rosy! Hope they're not all contractors.

This 10k doesnt even include contractors does it? A contract is not a "job" in this context is it? The bank that is my current main client has got rid of about 15 of 30 contractors in the section I work, without having to announce a single layoff.

Though now there are far too many chiefs for the number of indians, you can see that it wont be far off.

[PAH]

Gordon Brown in charge of all the banks, how jaw-droppingly frightenin' and yet, what a fantastically amusing prospect, to watch from another country.

Indeed. I'm sure there's loads of people on mainland europe that would be interesting in a house swap, seeing how they seem so desperate to come here.

[threaded]

This is about 2-3 years away I reckon, when most UK banks are bankrupt and the UK government owns them all with tax payers money.

Gordon Brown in charge of all the banks, how jaw-droppingly frightenin' and yet, what a fantastically amusing prospect, to watch from another country.

[DimPrawn]

I'm building up my war fund. Cash is king.

Houses will be cheap as it will be impossible to borrow to fund one, so the only buyers will be cash buyers.

This is about 2-3 years away I reckon, when most UK banks are bankrupt and the UK government owns them all with tax payers money.

[Moscow Mule]

If you have a job.

Well, indeed.

And suppose house prices then fall another 25%? Why not wait?

I'll have bought it for cash - it's my asset with no debt, I'll have somewhere to live.

Buying in a falling market is like catching a falling knife.

Bloody impressive if you can do it well?

FWIW, I seemed to have called the top of the market quite well - lets see if I can do the bottom of the market too - come back in 7 years

[BrilloPad]

Cool, in four years time I'll be able to afford a house for two years pay - I'll buy two!

If you have a job.

And suppose house prices then fall another 25%? Why not wait?

Buying in a falling market is like catching a falling knife.

[BrilloPad]

But that would fuel the economy thus making the doomsters predictions invalid. Boomed, I tell yer!

Provided enough people have jobs and enough money from paying mortgague plus other essentials.

debt is reality. house prices fantasy.

[Moscow Mule]

House price inflation -25%

Cool, in four years time I'll be able to afford a house for two years pay - I'll buy two!

[BrilloPad]

Executive summary please.

"We're suffering the aftereffects of the collapse of a Tinker Bell financial market, one that depended heavily on borrowed money that has now vanished like pixie dust."

Bankers have been playng "Heads, you win; tails, you lose someone else's money. "

"Academics now feel that the 1929 slowdown morphed into a Great Depression in large part because the Fed tightened credit rather than loosening it. With that precedent in mind, you can see why Bernanke's Fed is cutting rates rapidly and throwing everything but the kitchen sink at today's problems. (Bernanke will probably throw that in too, if the Fed's plumbers can unbolt it.) None of this Alan Greenspan (remember him?) quarter-point-at-a-time stuff for him. "

"Okay. Is there good news here? Indeed, there is. Sooner or later, all this money being thrown at the debt markets will stabilize things. "

"But the costs will be steep. Those of us who have been prudent, lived within our means, and didn't overborrow are paying a huge price for this. Income on our Treasury bills, money market funds, and CDs has dropped sharply, thanks to the Fed's rate cuts, and our wealth has eroded relative to foreign currencies and commodities."

HTH

[sasguru]

May as well spend spend spend and enjoy.

But that would fuel the economy thus making the doomsters predictions invalid. Boomed, I tell yer!

[DimPrawn]

So we can look foreward to the following in the next 2-3 years?

Interest rate for savers 0%
Interest rate for borrowers 9%
Real inflation rate 7%
House price inflation -25%


No point saving, no point borrowing and buying falling assets.

May as well spend spend spend and enjoy.

[MrRobin]

Just another article with the same underlying story.

You've read it already...

Yarr. Too much willy nilly spending on cheap credit lent to paupers who now can't afford to pay it back = banks not lending to each other = fed injecting cash into the system and lowering rates like the clappers = poor dollar value and overall cost to the hard working and people not spending more than their means.

[ratewhore]

Executive summary please.

Just another article with the same underlying story.

You've read it already...

[PAH]

"At least 10,000 jobs could be lost in the next 3 months", doesn't look too rosy! Hope they're not all contractors.

Though the statement "at least 1 job could be lost in the next 3 months" could be seen to be just as credible a prediction.


http://news.bbc.co.uk/1/hi/business/7321948.stm

At least 10,000 jobs could be lost in the UK's financial services industry during the next three months, according to a forecast by the CBI.

The employers' organisation's quarterly survey of the sector found that most companies thought the credit squeeze would get worse in the next six months.

CBI chief economist Ian McCafferty said: "This is a very serious crisis."

The report predicts that the UK will avoid outright recession, but says that finance jobs are already being cut.


City fears jobs losses

Conditions in the financial sector - which includes banks, building societies and insurance companies - have not improved since the credit crunch began six months ago, Mr McCafferty said.

"Some have suggested it's the worst financial crisis since the Second World War," he added.

"I think one of the key characteristics is that it will go on for quite some time to come."

The financial crisis, which began after banks made huge losses on investments backed by US mortgages, has caused chaos on US and global markets.