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Lehman Bros. (pg. 5)
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| Rostros |
Just to show how expensive property is in London check this
Would you pay £586,286.58 USD / £329,950 GBP for a 2 bedroom house with a bit of land next to it.
http://www.rightmove.co.uk/viewdetails-9116064.rsp?pa_n=1&tr_t=buy&mam_disp=true
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Or would you buy this 5 Bed , 5 Bathrooms , Pool ! for $500,000
http://www.lipplyrealestate.com/det...hp?list=2318292 |
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| gehzumteufel |
| quote: | Originally posted by SLR722
Your going to see the effects immediately. Banks are going to get VERY tight with lending (I know it sounds redundant...but its going to get much worse). Anything but AAA credit and your not getting a dime. Not for a house, a car, a t.v., or a microwave. Sadly, this is close to how it should have been from the beg.
This means much less flow of $$$ in the economy. So businesses, small and large, that have already been in the ter for the past two years won't be doing any better.
It's bad. |
You really fail at understanding the economics of lending. If only the people who have tons of money are borrowing, banks would cease to exist for us "poor" folk. Lending will not go to just AAA credit rated borrowers. What has happened though is someone with a FICO of 440 will not get a home loan, will have a really tough time getting a car loan, and income levels and liabilities will be more heeded. Also they will and probably already are, requiring asset and income verification before they approve a loan.
| quote: | Originally posted by pkcRAISTLIN
im happy to be shown otherwise, but im pretty sure it was the absence of adequate regulation playing a part here. im willing to hazard a guess that the US has the most deregulated banking sector out of all the advanced liberal democracies. but that's only a guess. |
Being that I was in the loan industry, I wouldn't say that it was so much deregulation as just banks relaxing the guidelines that fueled this "crisis" that could have been averted. The margin by which loan officers would overstate a persons income for a home loan was insane. |
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| Zombie0729 |
| quote: | Originally posted by Zoso
All of this could result in some of the most interesting (and perhaps painful) financial restructuring of our time. Our banking industry is already pretty heavily regulated, but I can't help but feel more regs are coming soon. I wonder if things will get bad enough that people will demand/give in to the federalization of the financial system. |
what this needs is the exact opposite. we need less government in these kind of circumstances. if a bank is going to build their entire portfolio out of insanely high risk loans then thats their choice.
people on this forum make jokes all the time that darwin strikes again when someone dies doing something retarded. these banks need to learn that as well, they need to fall to get back to reality. for them 20% profit margins and 10% incraeses in stock per quarter are low expectations.
i hope the government steps out of this, banks lose investors (yes i understand people will lose lots of money too) and banks get back to convervative products, with earnings based on a balanced book. |
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| gehzumteufel |
| quote: | Originally posted by Zombie0729
what this needs is the exact opposite. we need less government in these kind of circumstances. if a bank is going to build their entire portfolio out of insanely high risk loans then thats their choice.
people on this forum make jokes all the time that darwin strikes again when someone dies doing something retarded. these banks need to learn that as well, they need to fall to get back to reality. for them 20% profit margins and 10% incraeses in stock per quarter are low expectations.
i hope the government steps out of this, banks lose investors (yes i understand people will lose lots of money too) and banks get back to convervative products, with earnings based on a balanced book. |
I totally agree here. Not only will it get banks to go back to just being a bank, it will remove the living on credit extreme that we have been on for so long. |
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| fbgdavidson |
| quote: | Originally posted by saluyamo
Another question (DJ and that other economics guy might be able to give a good answer)
Just how bad could things get in your opinion? |
If I knew that I'd be sunning myself on my 300ft expedition yacht somewhere hot, instead I'm in my pyjamas looking for jobs ;)
| quote: | Originally posted by Rostros
The Question is will A.I.G Fall ? |
Last I heard was they had to raise $70bn in capital in two days. In a market like this. I don't see it happening. |
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| Zoso |
I can't speak with any authority, as I have no idea how regulated banks are outside the U.S. I work for a small community bank, so you'll have to take what I have to say with the appropriately sized grain of salt. I just know that between federal and state regulations, we have all sorts of rules to follow, and we have regular audits by the state, the FDIC, and external third parties. Again, I'm not knowledgeable enough to say how strict our regs are versus someone else's.
And I'm not suggesting that more government mandated regulations are the answer. I think there is plenty of good, industry standard advise and practice out there IF ONLY lenders were willing to follow that guidance. BUT, what will happen, is someone in a high office will say "the government should have done more to save YOU, the American people," and with the crowds cheering around him/her, more regs will come down the pipeline.
On the one hand, you want some banks to fail as a lesson to the others and because that's how free markets work - you do dumb , you go under. But on the other hand, I think banks are interwoven with so much other stuff, we're afraid to let too many large firms just fall flat on their collective asses.
Again, this could get very, very interesting. I'm just glad that all I owe is a small balance on an auto loan. |
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| chimera66 |
| with the us economy pretty much going to is this a good time to go into forex game and buy the us dollar and hold on until it gets better? |
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| gehzumteufel |
| I dunno, but it is a good time to gtfo the US. |
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| Zoso |
| quote: | Originally posted by gehzumteufel
I dunno, but it is a good time to gtfo the US. |
OMG NOWAI! Come to my house. I'm stocking up on canned goods, beer, and a bone saw, and I'm closely monitoring/recording my neighbors' schedules for future purposes.:gsmile: |
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| gehzumteufel |
| quote: | Originally posted by Zoso
OMG NOWAI! Come to my house. I'm stocking up on canned goods, beer, and a bone saw, and I'm closely monitoring/recording my neighbors' schedules for future purposes.:gsmile: |
LOL |
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| fbgdavidson |
| quote: | Originally posted by chimera66
with the us economy pretty much going to is this a good time to go into forex game and buy the us dollar and hold on until it gets better? |
The US dollar has actually been performing pretty well the few months. It has recovered 10% of its value against the GBP in the last three months, and a similar amount against the Euro. |
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| chimera66 |
| quote: | Originally posted by fbgdavidson
The US dollar has actually been performing pretty well the few months. It has recovered 10% of its value against the GBP in the last three months, and a similar amount against the Euro. |
well there goes my idea. although it can't perform well for too much longer though right if the government has to buyout companies |
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