Ableton Forum

The outlook for the UK is not looking good. Make sure you're wearing your seatbelts, it's gonna be a rough ride.

which bank are you talking about?

Funny thing is, i'm partly to blame - Credit card, Mortgage, Overdraft all in the red with Halifax...

HBOS (Halifax/Bank Of Scotland), currently in merger talks. The cost of capital in this country is going to sky rocket - no more loans, credit cards, overdrafts, mortgages, etc.

see the light wrote:Funny thing is, i'm partly to blame - Credit card, Mortgage, Overdraft all in the red with Halifax...

We have the culprit!

On the London market, HBOS shares have seen wild swings during morning trading, climbing as high as 220p and falling as low as 88p.

jeskola wrote:

On the London market, HBOS shares have seen wild swings during morning trading, climbing as high as 220p and falling as low as 88p.

Any company short-selling on those will be making a fortune; hedge funds really are pissing on the investment banks right now.

It IS going to be a rough ride.

Irresponsible borrowing, credit materialism and the "me me me I want it now" consumer culture are rapidly coming to an end. We didn't have the responsibility for our own actions ourselves, so the system is going to force it on us.

It will make us to rethink our morals, values, and what's really important in life.

That's not a bad thing.

hambone1 wrote:It IS going to be a rough ride.

Irresponsible borrowing, credit, consumerism, materialism and the "me me me I want it now" culture are rapidly coming to an end. We didn't have the responsibility for our own actions ourselves, so the system is going to force it on us.

It will make us to rethink our morals, values, and what's really important in life.

That's not a bad thing.

Totally agree, it's a mopping up exercise after the carefree party.

rough ride my arse, the government told me its all going to be ok, i trust them with my life, and all my personal details.

how does a bank go out of business? They don't start with any money in the first place

Emissary wrote:rough ride my arse

Emissary wrote:rough ride my arse, the government told me its all going to be ok, i trust them with my life, and all my personal details.

Me too. My brother works for Revenue & Customs and I've been in several of their offices - if you could see what goes on in there and the idiots trying to run the place it would give you nightmares for months.

http://www.zeitgeistmovie.com/

Meef Chaloin wrote:how does a bank go out of business? They don't start with any money in the first place

Basically the flow of money, i.e. credit, dries up between banks as they start to worry about the real value of their financial assets (and in the US, the sub-prime mortgages) and as a result they stop lending (between banks) and hold onto what they have - most banks have recently been very risky regarding their strategies as they have been heavily reliant on borrowing money to make money, and now there isn't any to borrow, so it's good-bye bank.

Bearing the above in mind, in the case of HBOS, as their share price tumbles, other banks are even less likely to lend them any money, so they really don't stand a chance of surviving and have to sell up. Also in the case where a financial institution might hold assets that directly affect the people on the street, i.e. mortgages, insurance, etc., the government is more likely to step in to stop any ruthless investors that would otherwise bleed the end customer dry. It's all very, very messy right now.

My advice: do not take on any unnecessary debt!