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[albitz]

And maybe the consumers were following the example of the government-chancellor Brown in particular.

[cem_devecioglu]

maybe it is a good thing to have this hardship, it gives people a chance to realise that the excesses we have created over the last 10 years or so........

It's not as if it wasn't clearly coming. It's obvious that the economy has been fuelled by unsustainable levels of consumer, business and government debt for several years. I can understand consumers "living for today" and getting into trouble. What amazes me is that the banks have left themselves so exposed to it as well.
Kevin

exactly..but tragedy is these bank managers let themselves for the Niagara effect following the general system behaviour..

[Kevin Wood]

I guess that's the way the industry works. The longer we are in boom the more schemes and "creative" investments get generated to make even more money, subject to even more risk, and the whole industry exposes itself.

We need a correction every so often to bring them back down to earth. What surprises me is that they commit themselves to the extent that they go under when the correction comes rather than having a plan for when the rainy day comes. Suppose that's why I'm an engineer not a city trader. :-/

Kevin

[cem_devecioglu]

I guess that's the way the industry works. The longer we are in boom the more schemes and "creative" investments get generated to make even more money, subject to even more risk, and the whole industry exposes itself.

We need a correction every so often to bring them back down to earth. What surprises me is that they commit themselves to the extent that they go under when the correction comes rather than having a plan for when the rainy day comes. Suppose that's why I'm an engineer not a city trader. :-/

Kevin

yep..keeping risks away is our job..thats what we dont understand

[DaveyDavey]

One of the best examples of media spin was last week in the run up to the LHC being switched on at CERN. I recall a Headlines of "If you are reading this at 8:31 then it's all ok", in actual fact all they did was test run a proton beam to see if it did a full circuit, then a few hours later they ran one in the opposite direction. There was no collision, it was all media hype to sell papers.

Yesterday was bad news for financial markets, but we've seen worse already this year. On 16 July the FTSE100 touched a low of 5071, it came back up pretty quickly after that. Will it go below 5000? Who knows, that is a very important figure and it is in the interests of the city to make sure it doesn't as that would really rock confidence.

[Varche]

Remember a company called ntl ? They went into chapter 11. Change of senior managers, lost their debts, diluted share equity by I think 97% (if you owned £1000 worth they were worth £30 when trading recommenced).

They haven't done too bad out of "Chapter 11'ing" !  

varche

PS I don't like being a doom and gloom merchant but the current climate doesn't fill me with confidence. personally I think it will get much worse.