Impending Market Implosion?

[seatkid]

Well done Dewsy - thats around 39mpg.....

 

Would love to comment further but I'm concentrating on the great crash in the finacial markets which will probably start in earnest this week.

 

I recomend anyone with investments, particularly shares, pensions or Isas tied up with stocks and shares etc to keep their eyes peeled over the next 2 - 3 weeks and be prepared to act quickly.

 

House prices will also start to crash but we all need somewhere to live and it will be a good thing for future generations to see common sense return to house prices.

 

Sh*t! I have a large part of my life savings in Northern Rock!! :o

 

Don't tell me I'm gonna lose them (again, like I did in 2001-2002 with those fooking precipice bonds....... :lol: :lol: )

 

If banks and building societies go tits up what hope is there for anyone who isn't a bleeding banker???........:angry2:

Things are looking bad......real bad.......think 1930's :lol:

 

 

Sorry bout the language, but I'm a bit upset..........

Edited September 14, 2007 by seatkid

[mumof4]

House prices going stupidly high affect everyone including those that dont own their own house..those seeking council accomodation like myself who will be classed as homeless in 6 days are looking at a minimum of a 5 year wait as there are soo many people needing rehousing after loseing their homes.I have been told by one council that being homeless does not make you a priority untill you are actually stood in the street with no where to go.This is because councils themselves have a shortage of houses.

 

House price increases have far outstripped wage increases which shouldnt be allowed to happen.This inturn means that people are borrowing so much that they are over stretching themselves as finances always look better on paper than they do in reality!!

 

 

the way i see it...house prices rocketed...lending rocketed..bad debt ensued as the people getting mortgages couldnt cope with the already overstretched repayments that would keep increasing..result= loss of home then the banks lose money.

 

Plus in todays market a lot of people live on credit then when things go boom like they envarably do..everyone loses money..hence what is happening now...is bound to happen sooner or later unfortunately.

 

The amount of people declaring themselves bankrupt has risen so has the amount of people who have trust deeds or IVAs..this also means credit companies and banks lose even more money.

 

Doesnt look good at all.

[tim-spam]

Another issue that's pushed up house prices has been the comparatively low interest rates over the last few years, allowing people to afford larger mortgages. Then the rates go up.....

[insider]

Sh*t! I have a large part of my life savings in Northern Rock!! :lol:

 

Don't tell me I'm gonna lose them (again, like I did in 2001-2002 with those fooking precipice bonds....... :lol: :lol: )

The article seems to suggest that you're safe if you have savings or fixed-rate mortgages with them, it's just those with variable-rate mortgages that will see a higher interest rate.

Northern Rock have just had to borrow, at a higher interest rate, from the Bank of England because no other banks want to lend money to each other at the moment. Any chance of moving some of those savings elsewhere to hedge your bets?

Edited September 14, 2007 by insider

[Bigjeeze]

Don't get yourself too worked up - This is not a failing bank - The Bank of England does not lend where it can't get our money back. What has happened here is that NR have borrowed money to lend out and make a margin on - Because of the financial jitters it nowcan't find enough to service the promises it has made - this is a cash flow problem not a failure It will get well soon. :unsure:

[katman]

Don't get yourself too worked up - This is not a failing bank -

 

It could VERY easily become so though.

 

They were interviewing people on the radio who had savings in Northern Rock and may of them were withdrawing all their money.

 

If everyone starts doing that there will be a run on the bank and it WILL go bust as no bank has the money people have deposited.... it is lent out to those who borrowed. Unless all the borrowers paid the bank back it cant give people back what is rightfully theirs.

 

Just think back to the fuel panics we have had. Just a small rumour of a shortage and everyone goes nuts filling to the brim thereby creating a shortage. It happens with things like bread and sugar at times as well :unsure:

Edited September 14, 2007 by katman

[gio]

No real need to worry SK, the bank of england has given them a blank cheque so to speak, and at a good rate, not higher rate.

 

Also as long as your money is in a deposit or savings account it is safe to the sum of

[mumof4]

It is at a higher rate gio.Alot of the banks were borrowing from the bank of england rather than from each other!

 

 

The Bank will have lent the money to Northern Rock at far higher rates than the standard Base rate

.

[gio]

It is at a higher rate gio.Alot of the banks were borrowing from the bank of england rather than from each other!

 

 

The Bank will have lent the money to Northern Rock at far higher rates than the standard Base rate

.

 

Sorry, yep its 1% above base rate.....

[mumof4]

since the banks have borrowed billions from the bank of england in the past few days..then 1 percent is a hell of a lot of money!!..

[gio]

since the banks have borrowed billions from the bank of england in the past few days..then 1 percent is a hell of a lot of money!!..

 

Sorry i do not understand the ! remark? i stated the % rate thats all!

 

But always one for knowledge, maybe you would be so kind as to tell me which banks have borrowed billions from the bank of england over the last few days?

 

 

thank you.

[mumof4]

Gio..i aint getting into another argument with you again..if you care to search the net you can quite easily find the information yourself.

[mumof4]

A snippet from the link SK provided if you had cared to read it...

 

Yesterday banking giants drained a

[gio]

Gio..i aint getting into another argument with you again..if you care to search the net you can quite easily find the information yourself.

 

Perish the thought, just asked about the ! exclamation remark. had i have said " sorry, yep 1% above the base rate" and ended it with !, i could understand your remark, but i did not, so have every right to ask why you thought it was acceptable to respond with an exclamation remark!

infact to respond full stop to my post thats was a correction and showed no malice what so ever, yet you seem to have read it that way!

Edited September 14, 2007 by gio

[mumof4]

You what??!!..over an exclamation mark??!!

 

i used the exclamation mark to emphasise that i thought billions was a lot of money..it doesnt mean malice or anything of the sort..

 

what does an exclamation mark actually mean...

 

 

 

A punctuation mark (!) used after a sentence that expresses a strong emotion.

 

It draws attention to something the writer finds surprising

 

is used, in place of a full stop, to indicate emphasis or strong emotion

 

The punctuation mark (!), used to indicate an exclamation.

[gio]

You what??!!..over an exclamation mark??!!

 

i used the exclamation mark to emphasise that i thought billions was a lot of money..it doesnt mean malice or anything of the sort..

 

what does an exclamation mark actually mean...

 

 

 

A punctuation mark (!) used after a sentence that expresses a strong emotion.

 

It draws attention to something the writer finds surprising

 

is used, in place of a full stop, to indicate emphasis or strong emotion

 

The punctuation mark (!), used to indicate an exclamation.

 

 

You are right i of corse as you stated originally that northern rock had indeed been lent the money at a far greater level than the standard base rate,and of corse 1% is indeed a far greater level !. god forbid what 2% above the base rate would have you responding with!

[mumof4]

And your point is??..

[gio]

And your point is??..

 

 

My piont is you read my post with the line "1% above base rate" and assumed it was a go at your post. had i had used the exclamation remark then you would have been correct to come back at me, but i did not so your comeback is somewhat out of place and irrelevent to what i posted.....

[mumof4]

Now you can hold on a minute...not once have i had a go at you..nor was i having a go at your post..an exclamation mark is not used to have a go at anyone....you have misread..and well and truely annoyed me now coz believe me if i was going to have a go at you, you would damn well know it!

[jkspoff]

We have our mortgage with Northern Rock as well as a personal loan, I just wonder what will happen to existing borrowers, if anything, maybe they will try and increase their interest rate, but if we move mortgage company etc then I bet the other banks will follow, as Northern Rock has 1 in 5 mortages in the UK.

[big_kev]

We have our mortgage with Northern Rock as well as a personal loan, I just wonder what will happen to existing borrowers, if anything, maybe they will try and increase their interest rate, but if we move mortgage company etc then I bet the other banks will follow, as Northern Rock has 1 in 5 mortages in the UK.

 

If it comes to the worst with Northern Rock, thay will call the administrators in and freeze their assets.

 

Their assets being any savers money they have and also any property that Northern Rock own ( or more accurately hold the deeds for ).

 

As your property is mortgaged with them, they could sell it to raise the cash ! :unsure:

 

Unlikely it would come to this though it is possible.

[big_kev]

Now you can hold on a minute...not once have i had a go at you..nor was i having a go at your post..an exclamation mark is not used to have a go at anyone....you have misread..and well and truely annoyed me now coz believe me if i was going to have a go at you, you would damn well know it!

 

Maz, you may need to make allowances for some language difficulties as apparent in Gio's postings.

 

He may be misunderstanding you.......or at least I hope this is the case.

[seatkid]

I'm trying to keep quite calm about all this situation :wacko:

 

after all they have just been vetted by the BOE, Treasury, FSA etc as solvent, therefore assets are greater than liabilities, so in theory everyone could withdraw money and there'd still be some left?....... :o

 

*?@#?*

 

And which bank is next? :unsure:

[gio]

Now you can hold on a minute...not once have i had a go at you..nor was i having a go at your post..an exclamation mark is not used to have a go at anyone....you have misread..and well and truely annoyed me now coz believe me if i was going to have a go at you, you would damn well know it!

 

And of corse i accept that, never the less its hard to see the relevance of your response to my post regarding the 1% above the base rate?

 

I am stating the rate that the bank of england has set for northern rock and you are talking about a"mass of banks using up 4.4 billion pounds of bank of englands special funds? you are using this as an example to show 1% above the base rate is the same as you earlier statement "a great deal higher rate"

 

But when you are talking about the arangement between northern rock and the BOE. it is not, given the arrangement is a blank cheque , this is an exception good deal for northern rock, when all things are considerd.

 

And please what is it with you and the threats! If anyone should be annoyed it is me and if people read those earlier posts, they will see exactly how you came across,even if it was not meant.

 

As for your last statement ! imagine if i have annoyed you by simply stating what the facts are in these posts, with no intention of malice, or to annoy you,then if it was to get heated, {you are already annoyed} and i@m only trying to be polite can you imagine what would happen if i was annoyed!

 

Bar me getting ban that is... so chill its friday having a beer or cuppa......and relax....

[gio]

I'm trying to keep quite calm about all this situation :wacko:

 

after all they have just been vetted by the BOE, Treasury, FSA etc as solvent, therefore assets are greater than liabilities, so in theory everyone could withdraw money and there'd still be some left?....... :o

 

*?@#?*

 

And which bank is next? :unsure:

 

 

aviod barclays apparently? might have something to do with there interest rates though. source radio 2 money expert