Online:
Visits:
Stories:
Profile image
By Capitalists@Work (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Are the bank about to collapse 2008 stylee?

Tuesday, February 9, 2016 9:48
% of readers think this story is Fact. Add your two cents.

(Before It's News)

In short, no.

I feel compelled to write this again as the media is full of dark thoughts about the banks and the world as a whole.

I personally blame the constant storms in the real weather as having a zen like influence on the traders of the world markets.

In the UK for example, Barclays, Lloyds and RBS have more or less closed their investment banking groups.

The remainder have Tier One equity of 10%+. They have been lending little real money except on mortgages and credit cards; of this, little has been securitised, let alone put into CDO’s.

The current issue really is that with all the secy stuff gone, the Banks are making no money and the regulators continue to find new crimes for which they get fined. I have little sympathy with the Banks or their shareholders on this.

But we are a long way off 2008. What wold be more troubling at this time would be a huge run on Government bonds, as that is where the real debt expansion has been. However, the threat of QE means that even the top hedge funds of the world are unlikely to try and fight that war in the West.

Instead we have a profit problem – itself predictable in world of a zombie economy and commodity induced deflation.

On the plus side, it means banks look cheap at the moment and he medium term benefits of oil prices are yet to work themselves out (i.e. a boost to the consumer economy) - so the economic future is brighter than it appears right now potentially.

CU



Source: http://www.cityunslicker.co.uk/2016/02/are-bank-about-to-collapse-2008-stylee.html

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.