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Explanation of the Credit Crunch

Discussion in 'Chill Out Forum:' started by Greg, Mar 9, 2009.

  1. Greg

    Greg Active Member

    Interesting video that very simply & effectively explains the credit crunch...

    Link - This is the best explanation of the credit crunch you will ever see
     
  2. Mosskat

    Mosskat Member

    Finally! Visuals I can understand!

    So it really was all about greed *tuttut*
     
  3. Greg

    Greg Active Member

    It was indeed, the only thing it didn't mention was shortsellers of stocks and trades, which is essentially large investors and hedge funds borrowing to buy shares and short selling them in the hope their value decreases, tricky one to explain!! But basically it's believed that the impact of the large quantities of shares being dealt in this way had a major damaging effect on various company share prices, there was also a lot of speculation that insider knowledge had been used by some, at one stage the government banned short selling, but I think the ban/suspension is over again now.
     
  4. Jazajay

    Jazajay Active Member

    I remember watching it on Panorama about 4 months before it actually hit and they warned of all of this then and gave a massive explanation of why it will happen.

    I remember telling a few ppl at the time, and even my dad was like bull, they are just making a story up ppl wouldn't lie to get a mortgage they couldn't afford and ppl wouldn't try to make ppl get a mortgage they couldn't afford in the first place, that and a financial regulators whistle-blower told that they were told to leave the lower mortgages lenders alone, ment we are all up sh*t creek because of no regulation and greed from the big banks and lower lenders as the big banks bought the mortgages from the lower lenders and then sold them on and had no idea what they had, what they had lost due to repositions.

    But I mean what still gets me is why are they still paying out billions of £££££'s in bloody bonuses???????

    No scratch that they do deserve there bonuses I mean they did 1 hell of a job to get us in this mess, in fact the whole they dug is so deep they deserve every penny. :rolleyes: :mad:

    Did you hear about those 3000 poor souls going for a job at Tywcross zoo, the gates closed after only an hour of opening, because of it. IT pros, other professionals all going for 500 jobs at minimum wage. I heard the other day that for every 1 person in work there are 16 currently out of work looking for a job. I know my friend has just applied for several jobs all minimum wage, as she has just been made redundant, and all of them closed within an hour of opening, as they had a few hundred applications for s*tty ass jobs.

    Good time to be thankful of any work you get at the mo IMO.
     
  5. Greg

    Greg Active Member

    More ridiculous than the bonuses has to be 'Fred the shred's pension after leaving RBS... £693,000 a year!!!! and the Government authorized it when they part nationalised RBS! :mad:
     
  6. Yeah .. i worked that out to how much money Fred would get each day... it was £2000 per day :grr:
     
  7. Jazajay

    Jazajay Active Member

    O don't get me started, and his excuses for not giving it back is I earnt it, please.

    Did you know some of the big banks top execs did not even have a banking degree, or what ever, they honest, had marketing degrees.

    Well that makes me feel safe when my banks top ppl haven't got a clue how to add up, but know how to sell things doesn't it?

    I mean at the mo the only banks that I feel safe with are any bank taken over by a Spanish bank due to the fact that the Spanish government has actually regulated them, they are now ridiculous strong and thus moving in on every other bank, and IMO rightly so.
     

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