US sub-prime triggered debt problems

From 9/11 to This....

THIS was the week, this was. It was on 9 August 2007 that the European Central Bank injected an unprecedented €95bn into money markets, conceding that the US sub-prime triggered debt problems could not be contained in that country and that a global credit crunch was unavoidable.

Even the termites, though, underestimated the extent of the crunch. US Federal Reserve chairperson Ben Bernanke predicted that the world banking system would eventually have to write off $400bn of non-performing loans. Well, write-offs have already reached $400bn, and now the termites are suggesting that there could still be another $2 trillion to go and another $1 trillion later on....Banking Scams are the coolest fashion in town these days, because "Elite Crimes are known as Profits"

This week, three major UK high street banks publish their interim figures: HSBC, Royal Bank of Scotland and Barclays. Analysts were expecting that they alone would boost the bad debt charge by £7.65bn, or just over $15bn, but in fact HSBC alone - the only one of the three to have reported so far - disclosed that its total credit market provisions were much worse than expected, at $10.1bn.

On this basis, the total by weekend could be closer to $40bn.

And how far is the credit crunch spilling over into the real economy?

Who Knows....Nobody Knows....Ghostbusters !!!

The biggest individual decline came from oil, at 18%. After threatening to top $150/barrel earlier this year, oil is now down close to $110 and analysts are forecasting it could go back below $80, the main reason for this is the declining demand for oil in the US. Oil has lost it's clientèle

Housing Scams : the housing market, which is still in free fall, with both prices and activity plummeting. Latest forecasts are that by the end of the year, house prices will be 60% off peak. Among the worst sufferers are the Suckers who were conned into buying property on all sorts of optimistic promises.... what would the world be without Suckers !!!

Never expect a Banker to lend you an Umbrella on a rainy day