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BOOM!!!! Financial Meltdown!

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    BOOM!!!! Financial Meltdown!

    Okay, slightly over the top headline, but nonetheless:

    - Fourth largest investment bank Lehman goes bust
    - Merrill Lynch requires $50bn buy out from bank of America to stop the same from happening to them
    - World stock markets in freefall
    - World's largest insurer AIG loses $18.5bn in three quarters and requires $40bn loan to stay afloat
    - Two largest mortgage firms in the US require buy out to save them
    - UK Inflation rises to nearly 5% - reduction in interest rates unlikely
    - Travel firms going bust leaving thousands stranded

    And it's still raining.

    Anyone directly affected by any of this? When the credit crunch hot last year we moved some of our finances around to free up more cash and get rid of some other investments. Glad we did now.

    What's next?

    #2
    Originally posted by Brats View Post

    What's next?
    It will get worse for a short period, then things will get better, gradually and carefully.

    In 4 years your house will be worth the same as it was last year, and everyone will come to agree:

    - We really did need a house market adjustment, it was getting silly
    - The financial world can't survive if it's based on giving huge amounts of credit to high risk ventures.

    As long as your job is safe then this should ride out OK. If you are directly effected (Building, Finanical Services etc) then I guess it could be a rocky ride.

    We will see.

    Comment


      #3
      The Hadron Collider experiment has sealed our fate, so I wouldn't worry too much.

      Comment


        #4
        Sounds really bad doesn't it, was thinking of getting back into Banking recently too. Must be pretty quiet over at Canary Wharf at the moment...

        Where's Fallows with some craziness??

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          #5
          It's the Lizard People, and David Icke, taking all their gold back to Pluto. Which now isn't declared a planet due to tax reasons.
          At least that's what I heard.
          Last edited by jimmbob; 16-09-2008, 11:08.

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            #6
            Originally posted by capcom_suicide View Post
            If you are directly effected (Building, Finanical Services etc) then I guess it could be a rocky ride.

            We will see.
            I'm in financial services (insurance). I'll see how it goes!

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              #7
              These are testing times - what amazes me is that so few of the people I work with are aware that there's anything wrong at all; non-news watching, sandy head-buriers, the lot of them.

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                #8
                Originally posted by capcom_suicide View Post
                - We really did need a house market adjustment, it was getting silly
                - The financial world can't survive if it's based on giving huge amounts of credit to high risk ventures.
                Agree with this, personally. Something was needed.

                As for being directly affected... my parents were due to fly out to Thassos last Friday morning at 07:00, with XL airways.

                On a positive note, they'll be getting a full refund and booked a late deal to Halkidiki (Leaving the next day), saving £900 in the process.

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                  #9
                  Originally posted by Brats View Post
                  I'm in financial services (insurance). I'll see how it goes!
                  Same here, work for a Mortgage Brokers, looks like it's all going to be downhill from here, we were already struggling to place a lot of mortgages as it is.

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                    #10
                    I heard awesome things about Bruce Dickinson (of Maiden fame) flying back people who got stitched up with the XL business. That would certainly put a smile back on my face if I'd been screwed.

                    Anyway, glad I'm not working for JPM anymore. Whilst heads are still being culled on a regular basis here, I'm fairly safe in my position, and at least the entire company's not at risk of going tits up.

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                      #11
                      The Government claim that inflation is at 5%, but its higher than that in reality.
                      Last edited by El Leone; 16-09-2008, 11:44.

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                        #12
                        Yea saw Bruce on telly yesterday he was in his pilots outfit and dropped a load off and was going to get some more.

                        It will get much worse, I can see it being like the late 80s again where house prices halved as they became unsubstainable (average price was 20k then 45k then some of em went up to 130+ in our area in mid 80s when average wage was £100 lol). Ive never understood why mortage companies where giving 100% and letting people borrow 5x their income it just was never substainable and was going to burst sooner or later.

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                          #13
                          Sold my flat and paid of part of the mortgage at the top of the curve just in time. If rates go up, I want to be able to afford the mortgage.

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                            #14
                            There's only one place all of this will end up - stuff being cheaper again. In the meanwhile we may as well ride it out, there's bugger all any of us can do about it.

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                              #15
                              Intrest rates will go right up and it will have the affect of bringing prices right down on houses. Theirs going to be shed load of people end up with repossesions because of the stupid mortage lenders and as someone that went thru that with bailifs knocking on the door in 80s as a kid I know how little leway they give you and time.

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