super_vlad Posted October 7, 2008 Share Posted October 7, 2008 Lets reconvene in 12 months and we'll see where we are. IMO we are in the middle of this century's financial apocalypse, and we havent even moved into the wider business circles of the collapse yet. To the other replies on this thread - my concern is that the UBIG group of companies is highly leveraged. It is precisely these sort of businesses that are at risk So is Tesco ! But noone is worried about them yet ! I agree with what you are saying, but i'm hoping that a rational will came back into the markets. I also believe the fed will bail out the yanks yet, which will in return bail out the likes of RBS over here. But as others have said, UKIo and RBS have had different business models, look at the likes of Lyolds being rock soild compered to HBOS. In the end we will all pay the price of gobalisation Link to comment Share on other sites More sharing options...
Jammy T Posted October 7, 2008 Author Share Posted October 7, 2008 So is Tesco ! But noone is worried about them yet ! I agree with what you are saying, but i'm hoping that a rational will came back into the markets. I also believe the fed will bail out the yanks yet, which will in return bail out the likes of RBS over here. But as others have said, UKIo and RBS have had different business models, look at the likes of Lyolds being rock soild compered to HBOS. In the end we will all pay the price of gobalisation Tesco has a high and regular cashflow, which subject to price fluctations is pretty consistent - but it does have a lot of finance fingers in pies so it will actually be interesting to see how this corporate beast does over the next 12 to 18 months. Thing is, banks were the first into this mess so they should be the first to bottom out and stabilise. Once they have stabilised there will be relative financial stability, but the fall out will be massive, as the restricted credit on the market will have a huge impact on "normal" business The banks will stabilise when all the toxic waste is known about and valued AND there is a solution to deal with it. Sub-prime started this over a year ago and still nobody knows their precise liabilities. There is an argument that this wont happen until house prices bottom. And we havent yet had the fall out from a general recession hitting prime.....mortgages, personal and credit card debt defaults. Its interesting but there is some merit in the argument that governments should have focussed on the housing market, possibly by focussing relaxations on Joe Punters such as you and I, to start the solution to this problem. It might have been a huge amount cheaper But then it is you and I that would have benefitted and not the elite of "the City", and that just wouldnt have done. Link to comment Share on other sites More sharing options...
david mcgee Posted October 7, 2008 Share Posted October 7, 2008 So is Tesco ! But noone is worried about them yet ! I agree with what you are saying, but i'm hoping that a rational will came back into the markets. I also believe the fed will bail out the yanks yet, which will in return bail out the likes of RBS over here. But as others have said, UKIo and RBS have had different business models, look at the likes of Lyolds being rock soild compered to HBOS. In the end we will all pay the price of gobalisation Lloyds is far from rock solid! Link to comment Share on other sites More sharing options...
Charlie-Brown Posted October 7, 2008 Share Posted October 7, 2008 Tesco has a high and regular cashflow, which subject to price fluctations is pretty consistent - but it does have a lot of finance fingers in pies so it will actually be interesting to see how this corporate beast does over the next 12 to 18 months. Thing is, banks were the first into this mess so they should be the first to bottom out and stabilise. Once they have stabilised there will be relative financial stability, but the fall out will be massive, as the restricted credit on the market will have a huge impact on "normal" business The banks will stabilise when all the toxic waste is known about and valued AND there is a solution to deal with it. Sub-prime started this over a year ago and still nobody knows their precise liabilities. There is an argument that this wont happen until house prices bottom. And we havent yet had the fall out from a general recession hitting prime.....mortgages, personal and credit card debt defaults. Its interesting but there is some merit in the argument that governments should have focussed on the housing market, possibly by focussing relaxations on Joe Punters such as you and I, to start the solution to this problem. It might have been a huge amount cheaper But then it is you and I that would have benefitted and not the elite of "the City", and that just wouldnt have done. The financial problems run deeper than you think Jammy_T this is a very good article. http://www.gather.com/viewArticle.jsp?articleId=281474977469883 Link to comment Share on other sites More sharing options...
Therapist Posted October 7, 2008 Share Posted October 7, 2008 Lloyds is far from rock solid! Correct. There is only one major UK bank that is "rock solid" at the moment. Link to comment Share on other sites More sharing options...
coppercrutch Posted October 7, 2008 Share Posted October 7, 2008 Tesco has a high and regular cashflow, which subject to price fluctations is pretty consistent - but it does have a lot of finance fingers in pies so it will actually be interesting to see how this corporate beast does over the next 12 to 18 months. Thing is, banks were the first into this mess so they should be the first to bottom out and stabilise. Once they have stabilised there will be relative financial stability, but the fall out will be massive, as the restricted credit on the market will have a huge impact on "normal" business The banks will stabilise when all the toxic waste is known about and valued AND there is a solution to deal with it. Sub-prime started this over a year ago and still nobody knows their precise liabilities. There is an argument that this wont happen until house prices bottom. And we havent yet had the fall out from a general recession hitting prime.....mortgages, personal and credit card debt defaults. Its interesting but there is some merit in the argument that governments should have focussed on the housing market, possibly by focussing relaxations on Joe Punters such as you and I, to start the solution to this problem. It might have been a huge amount cheaper But then it is you and I that would have benefitted and not the elite of "the City", and that just wouldnt have done. What do you mean exactly ? Cheers Link to comment Share on other sites More sharing options...
droid Posted October 7, 2008 Share Posted October 7, 2008 Correct. There is only one major UK bank that is "rock solid" at the moment. funny.....hsbc's is the only bank within the uk who's share price has risen recently Link to comment Share on other sites More sharing options...
coppercrutch Posted October 7, 2008 Share Posted October 7, 2008 funny.....hsbc's is the only bank within the uk who's share price has risen recently I think he is referring to Northern Rock... Link to comment Share on other sites More sharing options...
Therapist Posted October 7, 2008 Share Posted October 7, 2008 funny.....hsbc's is the only bank within the uk who's share price has risen recently HSBC. Known in the industry as "Home for Scottish Bank Clerks" due to their history. Link to comment Share on other sites More sharing options...
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