In trouble.

 

Shares at an all-time low, could be the next to go.

In trouble.

 

Shares at an all-time low, could be the next to go.

 

Thought they already had.

moved a large proportion of my cash from them to the icelandic lot in early August. They were looking a little dodgy back then. Will Gordon have to step in again?

moved a large proportion of my cash from them to the icelandic lot in early August. They were looking a little dodgy back then. Will Gordon have to step in again?

 

By "Gordon", I take you mean the good old taxpayer.

Right, someone explain this to me in simple terms. Bear with me.

 

Last year there was just as much money on the planet as there is today. But nobody seems to have it, or its hidden away under a big wheelie bin in Alaska. Or sommat.

 

So, all these billions being lost - where has it gone? Its not in folks pockets, so whats happened to it?

 

And if we added up who owed what to who, and everyone for an hour this afternoon paid back everyone they owed money too, in some way shape or form (for example I owe RBS ?xyz on my mortgage so I give them the upstairs), would there be enough money and assets in the world for everyone to be paid what they were owed?

 

If everyone is in massive debt, surely there must potentially be someone somewhere sitting on a big pile of tens and twenty's.

I'm of the opinion that this money doesn't actually exist.

It only exists on balance sheets, but not hard cash.

 

You borrow ?200,000 on a mortgage over 25 yrs at 6% APR for example's sake.

In reality ?200k moves from the Abbey, for example to you.

But on paper, you owe them about ?850k etc etc.

 

That ?650k doesn't really exist.

Right, someone explain this to me in simple terms. Bear with me.

 

Last year there was just as much money on the planet as there is today. But nobody seems to have it, or its hidden away under a big wheelie bin in Alaska. Or sommat.

 

So, all these billions being lost - where has it gone? Its not in folks pockets, so whats happened to it?

 

And if we added up who owed what to who, and everyone for an hour this afternoon paid back everyone they owed money too, in some way shape or form (for example I owe RBS ?xyz on my mortgage so I give them the upstairs), would there be enough money and assets in the world for everyone to be paid what they were owed?

 

If everyone is in massive debt, surely there must potentially be someone somewhere sitting on a big pile of tens and twenty's.

 

It's all gone on these city traders bonus's. They should be made to pay it all back. It's their fault we're in this mess in the first place. I think!

If everyone is in massive debt, surely there must potentially be someone somewhere sitting on a big pile of tens and twenty's.

I thought those blokes with white frocks on who bought the Masseeevs have got more these days, or am I wrong? So, if I'm right, then in theory, if some of that money was ours, then we've all paid for Robinho.

moved a large proportion of my cash from them to the icelandic lot in early August. They were looking a little dodgy back then. Will Gordon have to step in again?

 

Did the same

 

It might be knee jerk, it might be an over reaction, but I'm not gambling with my savings just to look a smart?rse, f?ck that

 

And the BofE will not bail every institution out, somewhere along the line they'll have to let some fail, like the Yanks with Lehman

I'm of the opinion that this money doesn't actually exist.

It only exists on balance sheets, but not hard cash.

 

You borrow ?200,000 on a mortgage over 25 yrs at 6% APR for example's sake.

In reality ?200k moves from the Abbey, for example to you.

But on paper, you owe them about ?850k etc etc.

 

That ?650k doesn't really exist.

 

I dont think it actually exists either.

 

If everyone called in the money (paid in cash, assetts, coke, anything) they were owed there would not be enough, I'm sure of it.

I dont think it actually exists either.

 

If everyone called in the money (paid in cash, assetts, coke, anything) they were owed there would not be enough, I'm sure of it.

 

No, there wouldn't... this has kicked off because loads of Yanks can't pay their mortgages, so the banks are having to write off vast amounts.

 

And like Traf said, they have that marked down not just for the ?200k you've borrowed but for the ?800k over the life of your mortgage. And they've gone out and borrowed money themselves, backed up by the ?800k on their balance sheet that is now never going to materialise.

 

And now their balance sheet is messed up they can't get access to money themselves. And a bank without cash is going to struggle.

 

Ironically it's the banks who offered people with bad credit history the money to begin with... it's coming back to haunt them with a vengeance now. But the guys who took the decision to make risky loans probably don't give a f?ck, they were pocketing huge bonuses for the last decade.

But the guys who took the decision to make risky loans probably don't give a f?ck, they were pocketing huge bonuses for the last decade.

jail the bastards - or hang them; they'd pretty soon give a f?ck then

Ironically it's the banks who offered people with bad credit history the money to begin with... it's coming back to haunt them with a vengeance now. But the guys who took the decision to make risky loans probably don't give a f?ck, they were pocketing huge bonuses for the last decade.

 

My bank manager was telling me somehting similar. In days gone by, you'd have to see someone in the management to get a big loan or mortgage. they'd sit you down and grill you about what you earned, what you could afford, did you really need it etc. It was akin to an interview. Very serious stuff. Ani will know more about it all.

 

The banks then got rid of a lot of this middle teir and replaced them with what me and thee might call 'salesmen'. Basic wages but big bonuses based on what they sold. It all was loosly 'scored' and the money taken out of a great big pot.

 

Not many moons ago you could walk into the Trafford Centre armed with a phone bill and your passport, and walk out with storecards and HP worth tens of thousands. Irresponsibe borrowing but more imprtantly irresonsible lending. 120% mortgages for f?cks sake - if you cant afford the deposit for a 95% one then you're sure as hell f?cked with a 120% one.

 

So, do you reckon they gave a f?ck if you could afford it or not?

Got to laugh at all these idiots with wads of credit cards and things bought on finance....live beyond your means and then complain when the banks finally stop offering you money?!

 

Then again...I can't walk into my RBS branch without some c?ntrag offering me my own credit card or loan....they never learn

Got to laugh at all these idiots with wads of credit cards and things bought on finance....live beyond your means and then complain when the banks finally stop offering you money?!

 

Then again...I can't walk into my RBS branch without some c?ntrag offering me my own credit card or loan....they never learn

 

 

Why do you remind me of...Nelson Muntz

The good thing about it all is the end to foolish lending and borrowing.

 

Interest rates are still relatively low and affordable, but the days of lending tousands to complete dickheads for non essential luxuries have gone for a long time.

Why do you remind me of...Nelson Muntz

 

I'm more like Millhouse....

I'm more like Sideshow Bob

 

:p

moved a large proportion of my cash from them to the icelandic lot in early August. They were looking a little dodgy back then. Will Gordon have to step in again?

I'd be worried having my money with the Icelanic lot........not necc the same protection as UK banks

If you've got less than 35k in Kaupthing or Icesave you should be OK.

 

http://www.thisismoney.co.uk/ask-an-expert...;in_page_id=111

Right, someone explain this to me in simple terms. Bear with me.

 

Last year there was just as much money on the planet as there is today. But nobody seems to have it, or its hidden away under a big wheelie bin in Alaska. Or sommat.

 

 

CHINA!!!

My bank manager was telling me somehting similar. In days gone by, you'd have to see someone in the management to get a big loan or mortgage. they'd sit you down and grill you about what you earned, what you could afford, did you really need it etc. It was akin to an interview. Very serious stuff. Ani will know more about it all.

 

The banks then got rid of a lot of this middle teir and replaced them with what me and thee might call 'salesmen'. Basic wages but big bonuses based on what they sold. It all was loosly 'scored' and the money taken out of a great big pot.

 

dunno

 

got my mortgage with halifax 2 years ago and f?ck me they made me work for it

 

question after question, they scrutinised my bank statement and pretty much wanted an explanation for everything going in and out of my account

 

which I suppose is reassuring

Its all gone on writing off these debts to 3rd world countries and funding a war in the middle east

No, there wouldn't... this has kicked off because loads of Yanks can't pay their mortgages, so the banks are having to write off vast amounts.

 

And like Traf said, they have that marked down not just for the ?200k you've borrowed but for the ?800k over the life of your mortgage. And they've gone out and borrowed money themselves, backed up by the ?800k on their balance sheet that is now never going to materialise.

 

And now their balance sheet is messed up they can't get access to money themselves. And a bank without cash is going to struggle.

 

Ironically it's the banks who offered people with bad credit history the money to begin with... it's coming back to haunt them with a vengeance now. But the guys who took the decision to make risky loans probably don't give a f?ck, they were pocketing huge bonuses for the last decade.

 

 

So, Smiffs borrowed 200k from the Abbey, so the Abbey borrows 800k on the strength of it from Barclays who borrow 3.2m from NatWest who in turn borrow 25m etc etc.

 

So, it's all Smiffs fault. And if he gives Lehmans $200bn everything will be sorted out.

C'mon Mr Leyth, pull your finger out.

If you've got less than 35k in Kaupthing or Icesave you should be OK.

 

http://www.thisismoney.co.uk/ask-an-expert...;in_page_id=111