aguero93:20
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- Some gobshites in day-glo green and black.
Bloody hell, think the worst we ever had was about 86% during the last crash.
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New Financial Crisis
- Thread starter KS55
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mexico1970
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I'm off to buy a shit load of toilet roll and scratch cards.
aguero93:20
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- Some gobshites in day-glo green and black.
Just imagine, the one time you win the 20k from the 2 quid scratchcard and by the time you collect your winnings they're not even worth enough to buy another scratchcard.I'm off to buy a shit load of toilet roll and scratch cards.
mexico1970
Well-Known Member
Just imagine, the one time you win the 20k from the 2 quid scratchcard and by the time you collect your winnings they're not even worth enough to buy another scratchcard.
I'll strangle myself with the toilet roll mate.
S
S
Summerbuzz
Guest
This is pretty bad but it's a reflection on SV, and local banking in the US. Local banks can grow rapidly then get in a mess. Growth comes in fits and starts. Deposits pile in. The bank now needs to invest that money. If the investments tank, they still have to pay interest on the existing deposits. This can be a problem if it comes alongside the rate of deposits slowing substantially, which is what's happened here. Load of investment money poured into new firms, that's now dryed up.
I'll give you one guess as to which products the SV banks invested in, sealing their doom. That's right! Mortgage derivatives. There's a glut of them due to long standing low interest rates. Interest rates go up.. people can't afford the mortgages, the banks investments tank big time. And because interest rates have gone up, the amount of interest the bank owes on deposits skyrockets.
Doesn't it all sound strikingly familiar?
Anyway, the outcome is a whole load of SV firms can't pay the bills. The biggest name I've encountered probably wouldn't mean anything to people on here, and they were only partially exposed, about a quarter of their cash.
SV's bubble has been rudely popped. Many will tell you it's been coming. But it's not the end of the world in itself. We can only hope other, larger institutions managed to avoid repeating mistakes so redolent of the previous financial crisis.
I'll give you one guess as to which products the SV banks invested in, sealing their doom. That's right! Mortgage derivatives. There's a glut of them due to long standing low interest rates. Interest rates go up.. people can't afford the mortgages, the banks investments tank big time. And because interest rates have gone up, the amount of interest the bank owes on deposits skyrockets.
Doesn't it all sound strikingly familiar?
Anyway, the outcome is a whole load of SV firms can't pay the bills. The biggest name I've encountered probably wouldn't mean anything to people on here, and they were only partially exposed, about a quarter of their cash.
SV's bubble has been rudely popped. Many will tell you it's been coming. But it's not the end of the world in itself. We can only hope other, larger institutions managed to avoid repeating mistakes so redolent of the previous financial crisis.
Tuearts right boot
Well-Known Member
Tell everyone there'll be a financial crash and guess what....
Wafty Cranker
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Probably not.
1. Crypto was always a bubble and anyone with an ounce of sense saw this coming years ago.
2. The tech sector has been struggling for over a year and a bank like SV with an over exposure to one market were always going to get hit.
Bitcoin has crashed every 4 years or so since it began in 2009. It’s nothing new to lose 80% of it’s value.
As of today the crypto market cap is still over $1 trillion. Bitcoin is held on the balance sheets of US listed companies, is legal tender in some countries, has institutional investment, global adoption is trending upward & it has outperformed the stock market over the last decade by some ridiculous percentage.
People called it a bubble in 2014 & 2018. Compared it to tulips or called it a ponzi. Then both times, for the next 3 years watched it rocket in value. In 2023 it’s now up over 50%, so I certainly wouldn’t bet against its price going up for the next few years.
dennishasdoneit
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I can remember those crazy days ..had a mate who ran his own mortgage business..What Northern Rock were operating was indeed bonkers.completely unsustainable.crazy. 125% of value deals..Wow.Well, I was involved in that market then and I can tell you we all thought those praising NR were bonkers. Put simply, they went on a dash for growth in mortgage assets by lending 125% of value with some very dodgy underwriting on mortgages sourced from 3rd parties, mainly mortgage brokers operating in the self certified sector. ( cf Fanny Mac and Fanny Mae.)
That circle could never be squared and, as you said, they ran out of liquidity.
They also used a charity based tax scam. Needless to say, the spivs who ran it did very nicely, thank you, the CEO buying himself a nice country mansion.
I wasn't aware of the charity based tax scam
I do feel as though we're trending towards something quite bad. I don't know if global financial collapse is necessarily it, but there's a lot of economic instability at the moment and I'm not sure what the natural end point is.
COVID threw everything all out of wack, combine that with political and social instability in many nations, the war in Ukraine, rapid inflation and rising costs of goods, and all the general fuckery going on and we have a bit of a powder keg.
Every situation is different obviously but in general don't think we as a global society ever fully recovered from the 08 crisis, and the issues creeping under the surface have accelerated since 2020.
I work for a medium size software company (in Operations so not making the big bucks) and the entire industry is just getting hammered right now. Lots of friends and coworkers being laid off. I survived one round but generally am thinking it's a coin flip whether I last the year. Which is actually an improvement over the weekend when I was genuinely nervous I wouldn't be getting paid as my company banks with SVB...
COVID threw everything all out of wack, combine that with political and social instability in many nations, the war in Ukraine, rapid inflation and rising costs of goods, and all the general fuckery going on and we have a bit of a powder keg.
Every situation is different obviously but in general don't think we as a global society ever fully recovered from the 08 crisis, and the issues creeping under the surface have accelerated since 2020.
I work for a medium size software company (in Operations so not making the big bucks) and the entire industry is just getting hammered right now. Lots of friends and coworkers being laid off. I survived one round but generally am thinking it's a coin flip whether I last the year. Which is actually an improvement over the weekend when I was genuinely nervous I wouldn't be getting paid as my company banks with SVB...