is the credit crunch just beginning?

[rootthemout]

major american bank to apply for bankruptcy and another having to be bought by bank of america,cbi in england warning of recesssion pending,F**k i think we havent seen the start of this thing yet

[nifan]

Its well underway, but certainly is not over!

[Hardy]

I love the new fashion for hilarious euphemisms. A banking collapse is a "credit crunch".

I'd be a believer in the free market myself, with regulation where appropriate for the public good. That'd be based on observation of the relative success rates the two major economic systems in delivering improved quality of life to the maximum number of people.

However, I'm taken aback to discover that I haven't properly comprehended the concept of the free market as understood by the world banking system. Apparently the idea is that there should be minimum government interference and regulation when things are booming and these lads are making huge amounts of money. However, when they start to lose money, as a result of their own greed and stupidity, we, the contemptible little people and taxpayers are expected to step in and bail them out with our money. Suddenly government interference is not just a good thing, it's demanded.

I think I'd better think it out again.

[Gnevin]

I love the new fashion for hilarious euphemisms. A banking collapse is a "credit crunch".

I'd be a believer in the free market myself, with regulation where appropriate for the public good. That'd be based on observation of the relative success rates the two major economic systems in delivering improved quality of life to the maximum number of people.

However, I'm taken aback to discover that I haven't properly comprehended the concept of the free market as understood by the world banking system. Apparently the idea is that there should be minimum government interference and regulation when things are booming and these lads are making huge amounts of money. However, when they start to lose money, as a result of their own greed and stupidity, we, the contemptible little people and taxpayers are expected to step in and bail them out with our money. Suddenly government interference is not just a good thing, it's demanded.

I think I'd better think it out again.

Your are of course forgetting the corner stone of debt , owe the bank 1,000,000 you can't pay your in trouble , owe the bank 1,000,000,000 you can't pay the bank's in trouble . Which is  what they are saying here , let us gone under and your all fucked too

[gawa316]

What will this actually mean to 'johnny commoner'?

[Donagh]

Should be fun when Wall Street opens.

[theskull1]

Stupid question?

What happens to the loans/mortgages (debt) people have if their bank "goes under"?

[nifan]

Should be fun when Wall Street opens.

Aye, the "fun" has already started in europe!

[ONeill]

In all honesty lads, could someone lend me a fiver?

[ziggysego]

[orangeman]

Interesting notice - it says "we are POLITE New Yorkers !"

Polite - there mst have been some ignorant boys working in that place before !

[Rois]

Stupid question?

What happens to the loans/mortgages (debt) people have if their bank "goes under"?

I've been involved in a couple of administrations but never in the area of financial services, so this could be a load of rubbish, but it's an educated guess.

The bank will owe money to certain creditors, most likely other banks.  I know nothing about banking structures but I would imagine that the outstanding loans would (eventually) become assets of the creditor banks.  

If the bank is in Chapter 11, it's similar to administration over here, so the administrators (PwC in the case of Lehman Bros) will keep the bank running until such times as they agree with the outstanding major secured creditors what the best way forward is.

I don't think it's a case of losing your house, but you might be subject to different terms and conditions than you'd been used to.

Very interested to find out what happens people who have deposits in the bank as Chapter 11 will effectively not allow them to take the money out, or it wouldn't in the case of a normal company.  

[Declan]

I'd be a believer in the free market myself, with regulation where appropriate for the public good.

Sure Friedman and them chicago lads think regulation is a dirty word and the amaerican administrations over the last 20/30 years ahve given them everything they wanted and now they start whinging.

Listening to analysts this morning sayinig it was inevitable etc but didn't hear too many saying it when they were selling their packages of subprime mortgages. Anyone for Das Kapital???

[Kentucky Blue]

on the credit crunch lads, can anyone tell me the cheapest place they know to get clear diesel?

[full back]

Why do you want clear stuff kentucky?