.. Posted September 15, 2007 Author Report Share Posted September 15, 2007 The real estate bubble is bursting and it's not pretty. Just as the GOP has some explaining to do concerning their blatant disregard for basic economic fundamentals, the British Labour government and Gordon Brown ought to explain why they thought "easy money" was such a good idea now that everything is falling apart so quickly and violently. Considering how much more politically connected banking has become in recent years it has been obvious that problems in one country, especially a country as large as the US, could trigger problems in other countries. Link [color:blue]Branches of Northern Rock were besieged by savers yesterday as fears grew in the City that the Bank of England rescue package for Britain's fifth-biggest mortgage lender could herald a slide in house prices and further financial collapses. Amid news that property prices were already falling sharply before the Bank's first use of its lender-of-last-resort facility in more than 30 years, the Newcastle-based Northern Rock was forced to keep branches open late to allow savers access to their money. By last night it was reported a total of £1bn had been withdrawn. Customers ignored reassurances from the chancellor, Alistair Darling, the British Bankers Association and Northern Rock itself that funds were safe. In the first real test of internet banking, websites at Northern Rock and many other banks crashed as savers tried to access their accounts. Police had to be called to a branch in Cheltenham, Gloucestershire, when a couple barricaded the manager in her office when she refused to let them withdraw their £1m savings. Shares in Northern Rock fell more than 30% yesterday, dragging the stock market down. With speculation other mortgage lenders were at risk, the FTSE 100 index closed down more than 1%. A sharp drop in shares of buy-to-let lender Paragon Mortgages made it issue a statement that it had no need to resort to the Bank of England, while Bradford & Bingley and Alliance & Leicester denied they had problems.[/color] Cheers, SD Link to comment Share on other sites More sharing options...
TheCorinthian Posted September 17, 2007 Report Share Posted September 17, 2007 Well the month is more than half over and nothing even remotely big has happend. So I am still leaning toward the original artical being full of it. Link to comment Share on other sites More sharing options...
elef Posted September 17, 2007 Report Share Posted September 17, 2007 It never happens at times predicted... :evil: Here in Sweden a big news today is that Greenspan writes in his memoirs that the main reason for the war against Iraq was the oil, I haven't seen that reported by english-speaking internet media... Link to comment Share on other sites More sharing options...
TheCorinthian Posted September 17, 2007 Report Share Posted September 17, 2007 Its on CNN and Fox right now. And of course it was about oil. We (the world) have to have it. Link to comment Share on other sites More sharing options...
junglesoup Posted September 17, 2007 Report Share Posted September 17, 2007 Yes,its very difficult to predict a major or abrupt turning point in the markets. One thing for sure though, is that markets fall faster than they rise. Well at least equity markets, where more buy and hold is used. By their very nature, abrupt crashes or market panics are unknown before they happen, hence they are called market panics. And market panic is contagious, which causes more sharp price falls. The very word panic conveys, surprise of the unknown. I strongly recommend a book called "Market Panic", which explains the signs to look out for which might cause a crash. Its possible to become a crash millionaire, many people have. This book talks about the different kinds of panics, phoney panics, real panics(justified). In the dotcom crash, the fact that 1 yahoo stock cost more than a computer was a warning sign that prices were inflated. When the very item(computer) which a stock(yahoo) needs to survive costs more than 1 stock, then something is not right. Link to comment Share on other sites More sharing options...
.. Posted September 18, 2007 Author Report Share Posted September 18, 2007 Lots of not so good news here: http://cryptogon.com Cheers, SD Link to comment Share on other sites More sharing options...
dabbish Posted September 18, 2007 Report Share Posted September 18, 2007 I think the major investors are pulling out right now. It's not a question of if it will happen, but when. Also, will it be preceded by another terror attack? If so, will the US attack Iran? If a US city is nuked we're surely gonna see a nuclear attack on Iran also. I'm gonna go and buy some gold or euros or something. Link to comment Share on other sites More sharing options...
chuckwoww Posted September 18, 2007 Report Share Posted September 18, 2007 I think the major investors are pulling out right now. It's not a question of if it will happen, but when. Also, will it be preceded by another terror attack? If so, will the US attack Iran? If a US city is nuked we're surely gonna see a nuclear attack on Iran also. I'm gonna go and buy some gold or euros or something. Watching BBC last night....some woman in the UK pulled 3/4 million pounds out of Northern Rock. Told everyone she took it home! On TV!! Link to comment Share on other sites More sharing options...
Faustian Posted September 20, 2007 Report Share Posted September 20, 2007 24 hours to go....everything looking ok after the rate cut, a very timely day before all this silliness....so short of a huge terrorist act, the bet looks lost. Link to comment Share on other sites More sharing options...
Faustian Posted September 21, 2007 Report Share Posted September 21, 2007 Markets around the world closed...nothing happened. Shocker! Link to comment Share on other sites More sharing options...
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