How will the FTSE end tomorrow (Monday)?
Poll: How will the FTSE end tomorrow (Monday)?
Total Members Polled: 155
Discussion
Simpo Two said:
I can see the Chinese dream running out of steam but surely if you own most of the world's gas, you can't possibly screw up - can you?
China has a massive internal market developing. They are not screwed at all. Even if the US imports less, they have plenty to go at within their own borders.
Garlick will be needing a couple more servers for these debates then. 
Tony*T3 said:
The Mail on Sunday rekons all the banks will be nationalised this week....
I wouldn't touch shares in anything with the government as a direct major shareholder even if it came with a free barge pole. Well maybe day traders would but I can't see investors buying to hold. It would push the shareprices up for a little while though wouldn't it?How would you people who own shares in these banks or trade shares for a living feel?
Tony*T3 said:
The Mail on Sunday rekons all the banks will be nationalised this week....
Green Left got there 8 years ago in Oz:http://www.greenleft.org.au/2000/428/22373
The rise of the new movement against globalisation provides an important opportunity to repopularise the demand to nationalise the banks. As that movement evolves into a more structured and organised political alternative bank nationalisation will need to be a central plank in its platform of struggle against the destructive and anti-human free-market.
From the link in the previous post.
From the link in the previous post.
The question is, where can we go now?
Capital injections into the banking sector haven't worked
Cutting interest rates, hasn't worked.
Guaranteeing Banks to Bank loans hasn't worked.
So, why is Brown urging Europe to follow our example?!
The Problem would seem to be;
None of the banks know what their own exposure is to bad debt, let alone what others' exposure is, thanks to teh way the debt has been resold and resold. So they won't lend to each other and want to keep as much cash in their vaults as they can.
They won't lend to each other and are calling in as much debt as they can, so they're not going to lend to you or I or business, or if they do, they're going to make it very expensive and difficult for us (becasue they don't really want to do it).
We're going into a recession. This is a time, when sales fall, incomes fall and people and businesses typically rely on debt more. Only this debt isn't available anymore. Therefore, businesses will have to make bigger cutbacks and some will go under. Arguably more than might otherwise have done. Individuals will be made bankrupt as they'll be unable to remortgage and hence might be faced with payments they can't afford. Or they will lose their jobs and be unable to find new employment quickly.
Investors have realised this and are pulling their money out of the equity market in the fear that companies might go bust, or be devalued anyway. Other investors see this and follow suit.
Investors in the banking sector are getting concerned becasue now the investments the banks made that looked safe, they are now looking questionable. Decreasing confidence in the banking sector.
If investors pull their money out, banks are left with a shortfall, but can't get it from other banks, so have to call in more money...
Repeat.
It all starts with the banks not trusting each other or wanting to lend?
If a Government guarantee on bank to bank loans isn't enough, what the hell is?
Capital injections into the banking sector haven't worked
Cutting interest rates, hasn't worked.
Guaranteeing Banks to Bank loans hasn't worked.
So, why is Brown urging Europe to follow our example?!
The Problem would seem to be;
None of the banks know what their own exposure is to bad debt, let alone what others' exposure is, thanks to teh way the debt has been resold and resold. So they won't lend to each other and want to keep as much cash in their vaults as they can.
They won't lend to each other and are calling in as much debt as they can, so they're not going to lend to you or I or business, or if they do, they're going to make it very expensive and difficult for us (becasue they don't really want to do it).
We're going into a recession. This is a time, when sales fall, incomes fall and people and businesses typically rely on debt more. Only this debt isn't available anymore. Therefore, businesses will have to make bigger cutbacks and some will go under. Arguably more than might otherwise have done. Individuals will be made bankrupt as they'll be unable to remortgage and hence might be faced with payments they can't afford. Or they will lose their jobs and be unable to find new employment quickly.
Investors have realised this and are pulling their money out of the equity market in the fear that companies might go bust, or be devalued anyway. Other investors see this and follow suit.
Investors in the banking sector are getting concerned becasue now the investments the banks made that looked safe, they are now looking questionable. Decreasing confidence in the banking sector.
If investors pull their money out, banks are left with a shortfall, but can't get it from other banks, so have to call in more money...
Repeat.
It all starts with the banks not trusting each other or wanting to lend?
If a Government guarantee on bank to bank loans isn't enough, what the hell is?
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