Deevers Posted September 17, 2008 Share Posted September 17, 2008 The risk for the Russian market, particularly with their behaviour towards Georgia, is foreign money disappearing from the market as people attempt to hoard cash. Coupled with the fall in oil, this may well be the case in the Russian market at the moment. If that is the case then the Russians are now reaping what they sow. They may wish to have Western money pouring into invest in various projects in their country, however the actions of the government over Georgie is making investors very twitchy. Pouring money into any country where the government is going to act in an arbitrary way is risky - to say the least. Link to comment Share on other sites More sharing options...
Ribble Posted September 17, 2008 Share Posted September 17, 2008 Well Santander the player in the game at the moment with very little exposure to US would be barred due to Abay & A&L so who do you think could/would bid for them? It's Lloyds that are making a bid Link to comment Share on other sites More sharing options...
Jammy T Posted September 17, 2008 Share Posted September 17, 2008 Well, I don't think that there will be many Eastern European banks who will have had much exposure to the American subprime market. They may be affected by this crisis - but not as much, Iwould think as the banks here and in other Wstern European countries. The subprime issue is simply the catalyst and the start of the problems There is a lot more to be unwound here than a few house purchases bought by people who couldnt afford them The subprime debt was wrapped up and sold with good debt, but a lot of this toxic debt was hidden. Thats one issue The collapse of Lehman Bros brings the issue of Collateral Debt Obligations to a new level - worldwide Now insurance markets are under pressure - as business goes bust people call in insurance policies, which need liquid funds to pay out (part, but not all, of the AIG problem) We havent even got the stage yet where the round of redundancies - started with housebuilding, moved on to financials - kicks in with prime mortgage problems and personal debt / credit card issues. This is the start of the complete loss of confidence in the world wide global financial system. No company in the finance markets will be unaffected. Not all will go bust but many will. However, I'm not sure how concerned WE should be about UKIO....we should be more concerned about our own shares and pension funds, jobs etc Link to comment Share on other sites More sharing options...
Deevers Posted September 17, 2008 Share Posted September 17, 2008 The subprime issue is simply the catalyst and the start of the problems There is a lot more to be unwound here than a few house purchases bought by people who couldnt afford them The subprime debt was wrapped up and sold with good debt, but a lot of this toxic debt was hidden. Thats one issue The collapse of Lehman Bros brings the issue of Collateral Debt Obligations to a new level - worldwide Now insurance markets are under pressure - as business goes bust people call in insurance policies, which need liquid funds to pay out (part, but not all, of the AIG problem) We havent even got the stage yet where the round of redundancies - started with housebuilding, moved on to financials - kicks in with prime mortgage problems and personal debt / credit card issues. This is the start of the complete loss of confidence in the world wide global financial system. No company in the finance markets will be unaffected. Not all will go bust but many will. However, I'm not sure how concerned WE should be about UKIO....we should be more concerned about our own shares and pension funds, jobs etc On that point I'm 100% in agreement with you - the full ramifications of all this are nothing like apparent yet. There will be a lot of people world wide who will be losers as a result of all this. Once the muddy waters clear and the consequences of all this are evident we can only hope that the financial sector starts using common sense instead of greed as a yard stick for progress in future. Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted September 17, 2008 Share Posted September 17, 2008 If that is the case then the Russians are now reaping what they sow. They may wish to have Western money pouring into invest in various projects in their country, however the actions of the government over Georgie is making investors very twitchy. Pouring money into any country where the government is going to act in an arbitrary way is risky - to say the least. Correct. Suddenly, their threats to freeze Europe given the oil price are looking very hollow indeed and Europe will look for alternative sources. Mind you, the way things are going the fuel will be from scrap to throw on braziers as people end up sleeping under bridges! Link to comment Share on other sites More sharing options...
Coco Posted September 17, 2008 Share Posted September 17, 2008 With regard to UBIG has there been any movement in terms of companies taking any of the rental space in the St Andrew's Square building? Link to comment Share on other sites More sharing options...
redm Posted September 17, 2008 Share Posted September 17, 2008 Another nice thread from the OP. Link to comment Share on other sites More sharing options...
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