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Britain was 3 hours away from financial collapse....
Former Member
Posts: 1,876,323 The Mix Honorary Guru
...so says Lord Myers.
Story.
I'm pretty bearish on the markets anyways, but if this is true it would surprise even me. Most people don't realise how fragile the confidence is in the market, and with Brown putting all the banks risk onto the taxpayer he is exacerbating the risk of sterling collapse. Fact is we can't afford to backstop every bank in this country and the CDS spreads between British gilts and German bunds is breaking new records everyday (and their banks aren't exactly in the best state either), the market is pricing in increasing risk of default if Brown doesn't stop fucking about....
Story.
I'm pretty bearish on the markets anyways, but if this is true it would surprise even me. Most people don't realise how fragile the confidence is in the market, and with Brown putting all the banks risk onto the taxpayer he is exacerbating the risk of sterling collapse. Fact is we can't afford to backstop every bank in this country and the CDS spreads between British gilts and German bunds is breaking new records everyday (and their banks aren't exactly in the best state either), the market is pricing in increasing risk of default if Brown doesn't stop fucking about....
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Then again that is to be expected when so much of existing 'wealth' is electronic numbers floating in the ether, and when investors act like five year old kids attempting a football game- where one goes with the ball, everyone follows closely.
Capitalism. Don't ya love it
"Centralisation of credit in the hands of the State, by means of a national bank with State capital and an exclusive monopoly."
I contend that therein lies any problems with the financial system. Fiat currencies.
Have you been keeping your eye on sterling ? I suspect there will be hands at work in the market now attempting to avoid it going over the cliff.
And now corus has annouced there cutting 2.5thousand jobs in uk and 3.5thousand jobs worldwide more than 10percent of its workforce
GOS - the UK doesn't have enough reserves to prop up the sterling and currency intervention is a fickle game because of the huge liquidity involved, any pop will be temporary so i am already hedged short against chf and will add on any bounce.
People should be serving prison sentances for what's happening.
The only bank that did get money from the government seems to have used it to line the pockets of owners and others through some very bizarre transactions. There's coming up cases one after the other where the banks and owners of large steady companies have sucked them dry from within. My nation pretty much feels it's been raped.
And now the government is cutting down healthcare and the education system (and everything else) to pay for this insanity . :yippe:
Next, Brown attempted to claim that David Cameron was "ridiculous" to talk about the possibility of the IMF having to bail us out. The money markets give a different message - why do you think the value of the pound is falling? Currently, the UK is seen as a bigger credit risk than McDonalds, of all companies. He has also claimed that nobody saw the recession coming. Again, not true. The Central Bank of Lebanon saw this coming 2 years ago. What did they do? They consolidated their weaker banks and made sure the strong ones were wall-capitalised. As a result, several parts of the world are weathering the recession extremely well - it is only countries such as ours which are suffering the worst.
Unemployment is heading towards 3million and could go even higher. The old adage is true - every Labour government ends up with higher unemployment than when they came in, and every Labour government ends up destroying the public finances. Thanks to these incompetent bastards, we now face the real risk of a run on the pound and having to visit the IMF in order to stave off national bankruptcy.
As for this story by Lord Myners, the man has a cheek. According to Guido Fawkes, Myners "made his millions in the City. He was until recently a director of GLG, the hedge fund spawned by ex-Lehmans staff, that made fortunes for traders taking short-term bets. It was one of the funds that profited the most from the collapse of Northern Rock.". Strange how he didn't declare that before making such apocalyptic claims, innit? Nonetheless, the story is almost certainly true.
Errors have since been made of course, but to be honest, even a completely faultless performance and the best measures possible would have still failed to save us from recession, though they could have of course put us in less a precarious position than we are now.
it's just a nice get out for euro politicians and the media to blame america, brown fucked this country over with year after year of growing deficits and accounting gimmicks (e.g. PFI), taking us to war, no financial regulation and always choosing short term voter popularity in favour of long term stability e.g. cutting interest rates back in 2005 to reinflate the credit bubble when house prices were stabilising, unsustainable immigration and social welfare policies etc etc i could go on. all that no more boom and bust, i'm a prudent iron chancellor crap he rode in on has been shot to shit. i don't understand why people aren't calling for his head yet, maybe when sterling is at parity with the dollar people will start to wake up.
as for mcdonalds, well there's not many safer places to put your money these days. i reckon their credit rating will be higher than most sovereign nations before this fiasco is over.
All over Europe, there are huge protests taking place. How long until the people of the UK join them to say - enough is enough? How long until we see violent protests on the streets of London? And how long until Gordon Brown gets the message? The brilliant cartoon accompanying this article from The Sun's Trevor Kavanagh, catches the current zeitgeist perfectly.
I much prefer the old boring route of elections
mcdonalds is a massive international chain built around franchises, ie, if one restaurant is in trouble, it is the owners who struggle, not the mcdonalds chain. it has an established reputation and doesn't really need to even advertise. people need to eat, and are too obsessed with convenience and haste to ever turn their back on it.
the uk is a country with an overpaid, underskilled workforce (how many people in the uk can even speak a foreign language to a good standard?) which refuses to join the euro, and chooses to ally itself more closely with the US and their shady economic situation than the EU which, albeit struggling, seems to be doing a bit better.
shit, if i had a tenner, i'd rather have a big mac than invest in the uk. with the change, i'd buy brown a pint. the guy could probably do with it.
PS. Vitual pint if you can pin France's economic troubles on Gordon Brown
In the meantime, what is the concern of our Prime Minister? When not talking about "hard-working familes" getting "the real help" that they apparently "need now" concerning "the recession which began in America" which would be a thousand times worse if the "do-nothing" party were in charge, he's been whinging to the media that newspaper cartoonists are making him look fat. Bloody nora...
http://www.timesonline.co.uk/tol/news/politics/article1655001.ece
"In Victorian times the Bank of England stored gold equivalent to the value of all banknotes in circulation — the so-called gold standard. This ensured that money had an intrinsic value and that governments could not simply print banknotes at will, which could quickly devalue sterling. However, the gold standard was suspended during the first world war as the country required huge sums of money to fund the military campaign. It was finally abandoned in the inter-war period."
That paragraph is for me the most important in the article if one was looking for financial advice,especially for the future.
I see Gonoism on the horizon.