We are all doomed.
http://crisisofcredit.com/
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| How we got to this 'credit cruch' http://www.taxi-driver.co.uk/phpBB2/viewtopic.php?f=1&t=11044 |
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| Author: | Sussex [ Sun Mar 22, 2009 6:16 pm ] |
| Post subject: | How we got to this 'credit cruch' |
We are all doomed.
http://crisisofcredit.com/ |
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| Author: | echo15 [ Sun Mar 22, 2009 6:43 pm ] |
| Post subject: | |
OH Deep Joy! 
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| Author: | Doom [ Mon Mar 23, 2009 5:16 pm ] |
| Post subject: | Re: How we got to this 'credit cruch' |
Sussex wrote:
If only it wasn't true though. |
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| Author: | Nigel [ Mon Mar 23, 2009 6:08 pm ] |
| Post subject: | Re: How we got to this 'credit cruch' |
Doom wrote:
Exactly, the best thing about it is the rich ones who made the money are long gone with a bag full of cash while the working class are left to pick up the mess thats been left. I reckon it's going to take us well over 4 years to get out of this mess, next year and the year after are going to be the bad ones. |
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| Author: | toots [ Mon Mar 23, 2009 6:36 pm ] |
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Well I'm just glad my pleasures don't cost a fortune 
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| Author: | Doom [ Mon Mar 23, 2009 6:54 pm ] |
| Post subject: | Re: How we got to this 'credit cruch' |
Nigel wrote: Doom wrote: Exactly, the best thing about it is the rich ones who made the money are long gone with a bag full of cash while the working class are left to pick up the mess thats been left. I reckon it's going to take us well over 4 years to get out of this mess, next year and the year after are going to be the bad ones. It all looks like once again the rules got bent so some could profit and others pick up the tab. I once was asked this If you owe the bank 1000 pound and can't pay it back, and another guy owes 1,000,000 and can't pay it back, who has a problem? The answer is you and the bank, because the guy owing a million won't get chased for it, where you owing a grand will, and the bank loses out all round. |
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| Author: | wannabeeahack [ Mon Mar 23, 2009 7:32 pm ] |
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basically its pyramid selling, except the item being sold is cash Mr Wantaloan pays £1.50 for a £1 Mr Middleman lends it to him at £1.50 per £1 and pays £1.25 for his Mr Rightatthetop sells it to Mr Middleman at £1.25 and buys off the Mr Goverment at £1.05 everything is fine till Mr Wantaloan defaults, then Mr Middleman defaults and so does Mr Rightatthetop, leaving Mr Goverment 2 options. sell the nations gold reserves (the only true worth of any goverment) or print more cash... mmm, lets see, whats gordie gonna do?... |
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| Author: | toots [ Mon Mar 23, 2009 7:34 pm ] |
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wannabeeahack wrote: basically its pyramid selling, except the item being sold is cash
Mr Wantaloan pays £1.50 for a £1 Mr Middleman lends it to him at £1.50 per £1 and pays £1.25 for his Mr Rightatthetop sells it to Mr Middleman at £1.25 and buys off the Mr Goverment at £1.05 everything is fine till Mr Wantaloan defaults, then Mr Middleman defaults and so does Mr Rightatthetop, leaving Mr Goverment 2 options. sell the nations gold reserves (the only true worth of any goverment) or print more cash... mmm, lets see, whats gordie gonna do?... That's just totally confused me now and I understood before I read this 
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| Author: | wannabeeahack [ Mon Mar 23, 2009 7:45 pm ] |
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the goverment lends out (through the bank of england) at (say) 0.5% interest the banks lend THAT out at (say) 5% interest the borrower is paying everyones wages (at the bank, also at the bank of england, also at the goverment) out of his interest payments when the end-user/borrower defaults the whole pyramid collapses just like pyramid selling and not unlike a long-firm investment fraud (like the guy in the states) get 200 folk to invest a million each, and promise double the interest they could get anywhere else, EXCEPT they are getting paid out of the pot, not any great income by earning from (say stocks/shares), this looks great, everyone puts MORE money in, and so on, but obviously, sooner or later, whats going out, exceeds what coming in.....ooops |
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| Author: | Doom [ Mon Mar 23, 2009 8:22 pm ] |
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wannabeeahack wrote: basically its pyramid selling, except the item being sold is cash
Mr Wantaloan pays £1.50 for a £1 Mr Middleman lends it to him at £1.50 per £1 and pays £1.25 for his Mr Rightatthetop sells it to Mr Middleman at £1.25 and buys off the Mr Goverment at £1.05 everything is fine till Mr Wantaloan defaults, then Mr Middleman defaults and so does Mr Rightatthetop, leaving Mr Goverment 2 options. sell the nations gold reserves (the only true worth of any goverment) or print more cash... mmm, lets see, whats gordie gonna do?... Spot on assessment. |
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| Author: | Nigel [ Mon Mar 23, 2009 9:35 pm ] |
| Post subject: | Re: How we got to this 'credit cruch' |
Doom wrote: Nigel wrote: Doom wrote: Exactly, the best thing about it is the rich ones who made the money are long gone with a bag full of cash while the working class are left to pick up the mess thats been left. I reckon it's going to take us well over 4 years to get out of this mess, next year and the year after are going to be the bad ones. It all looks like once again the rules got bent so some could profit and others pick up the tab. I once was asked this If you owe the bank 1000 pound and can't pay it back, and another guy owes 1,000,000 and can't pay it back, who has a problem? The answer is you and the bank, because the guy owing a million won't get chased for it, where you owing a grand will, and the bank loses out all round. LOL that brings back memories of what a businessman said to me a few years ago, he said if you owe the bank £10,000 and can't pay it back you have a problem, he then said if you owe the bank £1,000,000 and can't pay it back the bank have a problem. I rolled laughing but when I calmed down and thought about it he was right. |
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| Author: | toots [ Mon Mar 23, 2009 9:39 pm ] |
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Quote: LOL that brings back memories of what a businessman said to me a few years ago, he said if you owe the bank £10,000 and can't pay it back you have a problem, he then said if you owe the bank £1,000,000 and can't pay it back the bank have a problem. I rolled laughing but when I calmed down and thought about it he was right.
I know somebody who owes considerably more than 1,000,000 to the bank and he hasn't got a care in world it's all theirs to worry about as he said 'what can they do'. It's annoying though cos we're probably subsidising the bank that's subsidising his live style |
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| Author: | Nigel [ Mon Mar 23, 2009 9:42 pm ] |
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toots wrote: Quote: LOL that brings back memories of what a businessman said to me a few years ago, he said if you owe the bank £10,000 and can't pay it back you have a problem, he then said if you owe the bank £1,000,000 and can't pay it back the bank have a problem. I rolled laughing but when I calmed down and thought about it he was right. I know somebody who owes considerably more than 1,000,000 to the bank and he hasn't got a care in world it's all theirs to worry about as he said 'what can they do'. It's annoying though cos we're probably subsidising the bank that's subsidising his live style You've got to hand it to them for having the swingers to get that much on the chuckie and then default on it. |
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| Author: | Jasbar [ Mon Mar 23, 2009 11:02 pm ] |
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The smoking gun was the £1.3 trillion personal debt. That was aways going to have to be paid back some time. Any serious attempt to do so was always going to impact heavily on the economy. Sucking out spending power always does. Vince Cable wasn't the only one to understand this. Cabbies, who are quickly sensitive to changes in spending practice, were always aware of this. Just a pity that those paid lots to be aware weren't. Perhaps the real problem began when traditional banks stopped being takers of deposits, selling those deposits out as loans and taking a margin to fund their enterprise, and instead began buying and selling money on the world money markets. The move into gambling on futures, aka nick leeson ( a lesson not learned) and other financial risk ventures, spelt the end. We're all suffering because these "criminals" brought the house of cards down. Now, why did sharp Fred get a £16 million pension pot? Kinda let's us all know where we stand doesn't it? |
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| Author: | captain cab [ Mon Mar 23, 2009 11:04 pm ] |
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Jasbar wrote: Cabbies, who are quickly sensitive to changes in spending practice, were always aware of this.
Just a pity that those paid lots to be aware weren't. We're all suffering because these "criminals" brought the house of cards down. I actually enjoyed that post......first time for everything I suppose 
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