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Weston Super Saint
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i'm not really that up on american banking, etc, but are you saying that another financial institution has collapsed then??

 

 

if so,,, WTF!!!!!

christ, things really ARE looking bleak, aren't they!:(

 

Basically banks borrow from other banks to lend money for mortgages.

 

Washington Mutual has declared bankruptcy as it can't afford the repayments on it's borrowings - presumably it's customers can't afford the repayments to put it into this position.

 

The US treasury is planning to pump in billions of US dollars to 'prop' up the system. But understandably they are arguing over it.

 

If the decision is not reached before Monday morning, I would imagine a lot of investors will be selling their shares in financial institutions for fear of losing all their money, thus triggering a large scale collapse of the markets....

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It's fun at the moment watching America run around like headless chickens, but I think things are going to get much closer to home soon.

 

Time for everyone to put their money under their beds!

 

I was shocked to hear HSBC are getting rid of 500 employees in their London head office.

 

Strange thing for the company I work for is that we've had more computers than EVER going to Africa. The times are a changing.

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It's fun at the moment watching America run around like headless chickens, but I think things are going to get much closer to home soon.

 

Time for everyone to put their money under their beds!

 

I was shocked to hear HSBC are getting rid of 500 employees in their London head office.

 

Strange thing for the company I work for is that we've had more computers than EVER going to Africa. The times are a changing.

 

That would be exactly the worse thing to do!

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If the bail out goes through, the USA will have a deficit of $1.5 trillion dollors(for comparison, the Uk had a $39.4 billion deficit in 2007). I'm sorry, but that isn't sustainable. All great countries eventually collapse. It happened to us after the war(and it would have been a lot worse if the US hadn't saved us) and it is going to happen to the US very soon and unfortunately I fear they might take us with them. The USA has had a good run as number 1, now it's china's turn.

 

Although it can be argued as china relies heavily on exports to the west, if we collapse, they could partially collapse meaning everyone is ****ed.

Edited by Saintandy666
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Why don't they just print loads more notes.

 

Printing more money deflates the value of the money. Russia back in tut olden days tried to employ this trick and it got to the point where there was so much money, it was actually cheaper to wipe your a$$ with notes than go out and buy toilet roll. People were walking down the road with wheelbarrows full of cash just to buy a pack of fags!

 

The reason is because if more people had more money, we would be spending more on things. Eg I have £10 I can buy 10 sweets. I have £100 I can buy £100 sweets. With demand becoming more popular, supply is stretched so prices go up.

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