Reply to: Belgian Bank collapse

[TimCaprica]

Let them all go bust and use the money that would have been injected as fresh capital to start a new bank staffed only with certified 100% fairtrade eco bankers who will invest in fluffy bunny breeding programs.

I'm 100% pro bunny

[DimPrawn]

Let them all go bust and use the money that would have been injected as fresh capital to start a new bank staffed only with certified 100% fairtrade eco bankers who will invest in fluffy bunny breeding programs.

Futures trading on lentils and shorting M&S cardigans.

[doodab]

But if the bank fails it probably doesn't have that many strong assets and the assets that are there will see a sudden short term drop in value that will hit the balance sheets of all banks.

Allowing a few banks to fail like Northern Rock, Lehman Brothers, Bear Sterns etc?

Let them all go bust and use the money that would have been injected as fresh capital to start a new bank staffed only with certified 100% fairtrade eco bankers who will invest in fluffy bunny breeding programs.

[TimCaprica]

If the bank is left to fold, then the assets can be bought from the receivers or the bank can be nationalised.

Until one or two banks are allowed to fail, the banks are going to carry on gambling taxpayers money and giving themselves huge bonuses. It’s a bit like giving a drug addict money without getting them treated. Let the banks go cold turkey.

But if the bank fails it probably doesn't have that many strong assets and the assets that are there will see a sudden short term drop in value that will hit the balance sheets of all banks.

Allowing a few banks to fail like Northern Rock, Lehman Brothers, Bear Sterns etc?

[Paddy]

It would be nice if they could go under without bringing everyone else down but if that was left to happen it would just start an awful chain of events resulting in a total halt to all lending as in 2008.

I'm probably stating the obvious but the problem is that all the banks have made stupid investments (including to each other) so if one goes all the others look vulnerable both through exposure to failed bank and exposure to the same stupid investments. Then nobody wants to lend to any bank, which is effectively a wholesale banking bank run, and then the world ends.

My unlikely prediction is that it all ends up on the balance sheets of central banks and then disappears through printing loads of money resulting in lots more inflation and slow growth in the medium term. Then we can all get our tulip together and have fun causing a new crisis.

If the bank is left to fold, then the assets can be bought from the receivers or the bank can be nationalised.

Until one or two banks are allowed to fail, the banks are going to carry on gambling taxpayers money and giving themselves huge bonuses. It’s a bit like giving a drug addict money without getting them treated. Let the banks go cold turkey.

[AtW]

The rescue of Dexia, which has global credit risk exposure of $700 billion, more than twice Greece's GDP. Dexia has 7 billion euros of securities linked to U.S. mortgages

[TimCaprica]

Stange who EU laws are ignored when it suits them.
If banks make such stupid investments then they should be left to go under.

It would be nice if they could go under without bringing everyone else down but if that was left to happen it would just start an awful chain of events resulting in a total halt to all lending as in 2008.

I'm probably stating the obvious but the problem is that all the banks have made stupid investments (including to each other) so if one goes all the others look vulnerable both through exposure to failed bank and exposure to the same stupid investments. Then nobody wants to lend to any bank, which is effectively a wholesale banking bank run, and then the world ends.

My unlikely prediction is that it all ends up on the balance sheets of central banks and then disappears through printing loads of money resulting in lots more inflation and slow growth in the medium term. Then we can all get our tulip together and have fun causing a new crisis.

[Zoiderman]

Funny enough, read a peice on this at the weekend, and the crux of it, is that anything wrapped up at AAA, is least risk as far as an investment goes, but not no risk. I can't see anyone to have done anything illegal here. Morally speaking, well, I don't think we'd ever have thought any investment bankers actually had morals.

There will be no crash, except in what is going to happen to our pension funds, and savings....

[PAH]

So, it's true, some people/companies are above the law by either having friends in the right places, or the wealth to concoct a defence no prosecution could ever win against.

[Churchill]

Ditto presumably for the guy who massaged Greece's finances to get it to pass its Euro entrance exam.

Yep, 'fraid so.

[TimberWolf]

I think you're confusing the words "illegal" and "immoral".

That scam/scheme will have gone through probably the most expensive legal team on the planet and the guy who dreamt up that scam/scheme will have made an absolute fortune!

Ditto presumably for the guy who massaged Greece's finances to get it to pass its Euro entrance exam.

[Churchill]

Will these be the subprime mortgages that were fraudulently packaged as low risk and sold to other companies?

Thus transferring billions (if not trillions) of fraudulent debt to banks and companies in other countries for their governments to bail out.

Has anyone even been arrested, let alone charged, for such a massive fraud?

Or is this the scam we're not supposed to talk about?

I think you're confusing the words "illegal" and "immoral".

That scam/scheme will have gone through probably the most expensive legal team on the planet and the guy who dreamt up that scam/scheme will have made an absolute fortune!

[TimberWolf]

Euro zone leaders must take "decisive steps"- Cameron

print money like the buggery as any prudent steward of the economy would do

Euro zone leaders must take decisive steps- Cameron | Reuters

[PAH]

Dexia has 7 billion euros of securities linked to U.S. mortgages

If banks make such stupid investments then they should be left to go under.

Will these be the subprime mortgages that were fraudulently packaged as low risk and sold to other companies?

Thus transferring billions (if not trillions) of fraudulent debt to banks and companies in other countries for their governments to bail out.

Has anyone even been arrested, let alone charged, for such a massive fraud?

Or is this the scam we're not supposed to talk about?

[DimPrawn]

So the French government will borrow money to take on Dexia's debts, thus taking their debt/GDP ratio even higher.

So the banking elite who control the World, will use the French govt puppets to borrow money to take on Dexia's debts, thus taking their debt/GDP ratio even higher.