Administration - here we go!

[Rob McCow]

George W Bush might have a crystal ball!

America will face "financial panic" and a "long and painful recession" unless a massive rescue package is passed immediately, George W Bush said today.

I'm in awe at the foresight of the man... he's so quick off the mark! I look forward to his few remaining speeches as president where he can tell us 'Problems in Israel have no easy solution' and 'The US may take have to take military action if she is threatened.' Duh!

[Si Hunt]

There is a bit of financial panic at the moment George, dontchaknow.

Si.

[WhiteCrow]

I think this bail out was initially welcomed but has been reviled on analysis.

There's fears that the excesses of Wall Street are behind the current problem, and the bail out will bail out the banks, but not so much the people lower down the chain.

[SiHart]

His presidency is as bankrupt as the economy.

Si xx

[WhiteCrow]

Yes - I don't think history will remember him well. BRING BACK NIXON!!!

[Jeff]

Just under 4 months left. 40 days till we elect the next one.

[Ralph]

Every day seems to have further gloom Over the last few weeks I've decide to restrict watching the news when at home because I've had enough of the daily bad news in my working life. I'm really looking forward to everything eventually getting back on an even keel - it would be fantastic just to get back to some kind of normality

It's definitely a time when positivity is really needed in abundance!

[Captain Tancredi]

Funny you should say that, Ralph- last week when I was in Paris, all the news about the financial situation was coming from a French perspective, and they seemed to have things under control and view the credit crunch as an Anglo-Saxon phenomenon. When it came to Thursday and coming home, I was sitting at the Gare du Nord waiting to board the Eurostar and suddenly noticed that all the English tabloids were using headlines full of words like "panic" and "stampede"- it just seems irresponsible of the press to be breeding more panic in a situation which lay people don't necessarily understand, rather than explaining what's happening in a calm and rational manner. The headline on Friday's London Evening Standard boomed out "House Prices Fall £30,000"- well my parents' home is only just worth £30,000 and I'm sure it hasn't become worthless overnight.

[Ralph]

I totally agree the media have been totally out of order and seem to want to upset people unduly. A major recession affects everyone including the journalists, god knows why they seem to relish rocking the boat at this time. At least I suppose on a forum like this there's an opportunity to escape from reality into the fantasy world of Planet Skaro where our childhood heroes give us reason for good cheer and inspiration

And of course good always wins over bad!

[Si Hunt]

That's what we get for having the press we do. They tell lies, they sensationalise things, they make peoples lives a misery and they feed peoples appetite for scandal and misfortune in others.

I haven't bought a paper since 1997 when they killed Diana. If everyone else did the same, then they couldn't survive.

Si.

[WhiteCrow]

I haven't bought a paper since 1997 when they killed Diana.

But they didn't kill Diana, it was evil freelance foreign Paparazzi, not directly associated with any paper. And besides papers promised after they would never again hound anyone in that manner - just ask Kate Middleton.

It's a sign of trust in those in power; we're told there's nothing to worry about regarding banks from Government, and immediately there's panic on banks, with share prices taking a huge hit this morning.

Oi Darling - JUST-SHUT-UP!

One amusing thing of this credit crisis - Bradford and Bingley went under the other Saturday, but they were still running their adverts on the Sunday (must have been pre-bought). Seemed kind of eirie.

[Antony Cox]

One amusing thing of this credit crisis - Bradford and Bingley went under the other Saturday, but they were still running their adverts on the Sunday (must have been pre-bought). Seemed kind of eirie.

Yes, I noticed that too!

[Wayne]

I see the credit crunch has affected Christmas.
It usually starts on September 1st, but it's a month late this year.

[SiHart]

I'm sure some of the papers are secretly delighted we're having a recession. For the past 5 years or so the Daily Express has been trying to undermine the housing market with its forecasts of doom on the rising prices... and look, they've succeeded. I'm sure this sort of doom mongering does a great deal to create unrest.

Si xx

[WhiteCrow]

The media helped fuel the hysteria over Northern Rock. There was nothing wrong with the bank last year, it was just having a rough time - as did every other bank. In fact the Bank Of England was showing confidence in the bank by lending money to it.

But thanks to paper fueled hysteria, people started taking out their money en mass. Once the panic set in, the bank really was in trouble.

I think half the problem we're experiencing at the moment in the markets is the skittishness which has been introduced because of last weeks reports. I think when recession hit consumers start cancelling their Sky subscriptions, the papers might well start changing their tune.

[Larry]

well the Icelandic economy is reportably near to collapse and this certainly won't help

WEST HAM UNITED FC were plunged into a new financial crisis today after the bank of owner Bjorgolfur Gudmundsson was put into receivership in Iceland.

It was announced this morning that a government body had dismissed the board of directors of Landsbanki - the bank with which Gudmundsson made his fortune as major shareholder and chairman.

The likelihood now is that the bank will be nationalised. Gudmundsson owns around 40 per cent of Landsbanki with his son and faces losing his personal fortune.

[WhiteCrow]

During the financial crisis of the first Wall Street Crash, some bankers who were ruined threw themselves out of their windows to their deaths.

Of course in these more health and safety consious days, most building windows don't open unless you get a prior authorisation from building services to have the window opened.

[Ralph]

I see the credit crunch has affected Christmas.
It usually starts on September 1st, but it's a month late this year.

Christmas is cancelled this year Wayne

[SiHart]

Interest rates have been cut:

Six central banks - including the Bank of England - have cut their interest rates by 50 basis points.

The UK rate move - which had not been expected until Thursday - puts interest rates at 4.5% from 5%.
The US Federal Reserve has cut rates from 2% to 1.5% and the European Central Bank (ECB) trimmed its rate from 4.25% to 3.75%.

The unprecedented step is aimed at steadying a faltering global economy and slumping stock markets.
The central banks of Canada and Sweden and Switzerland all took similar action in the co-ordinated move.
China also cut its rate by 27 basis points.
European financial markets reacted well, pulling back some of the losses seen earlier on Wednesday.

The last time the Bank of England cut rates in a special meeting was on 18 September 2001 - when rates came down from 5% to 4.75%.

The announcement came hours after the UK government unveiled plans for a £50bn rescue plan for UK banks.
Responding to the rate cut, UK manufacturers' group the EEF welcomed the " bold and decisive move" it hoped would "arrest the current crisis and collapse in confidence".

"Coupled with the plan to shore up the financial system today's co-ordinated moves should help arrest the potential slide into depression," said the EEF's chief economist Steve Radley.

The Fed said that it had acted "in light of evidence pointing to a weakening of economic activity and a reduction in inflationary pressures".
And the ECB said it had felt able to act because "inflationary pressures have started to moderate in a number of countries, partly reflecting a marked decline in energy and other commodity prices".

Although it did not cut its own rate - which is just 0.5% - the Bank of Japan, expressed its "strong support" of the policy.

Si xx

[Rob McCow]

I usually guess wrong about these things, but is this good news for mortgage-holders?

[Si Hunt]

Well it is for mine, as it's a tracker mortgage linked to the BOE base rate.

Things are really just mad right now arn't they?

Si.

[Antony Cox]

It should be, as the mortgage lenders usually follow the base rate.

But there's always two sides to an adjustment in interest rates - if they go up then people with savings benefit but those with mortgages don't, and vice versa. It's the careful adjustment of this which usually helps balances out the economy through it's natural cycle, though of course the present economic climate is anything but 'usual'.

[WhiteCrow]

I love this article by the Daily Mash ...

http://www.thedailymash.co.uk/news/b...-200810081308/

THE government is to invest £500bn of your money in British banks so they can lend it back to you with interest.

The historic move is being hailed as a lifeline for the financial system as long as nobody asks too many questions.

Julian Cook, chief economist at Corbett and Barker, said: "The government will give your money to the banks so the banks can start lending you that money, probably at around 7% APR.

"Thanks to all the interest you're paying on your own money, the banks will make billions of pounds again and normality will be restored.

"After a few years of this the government will cash in the bank shares it bought with your money and use the profits to build a huge ****ing dome somewhere."

[Si Hunt]

Even I can see it's not that simple. At the end of the day, the banks, rotters though they are, are what keep our economy going and things would be a lot worse for all of us if they all crashed, than if they borrowed Government money to stay afloat.

Also note that when the Government put money into the banks, it's "our" money. But when the Government take money from anywhere, it's then the Governments money again and they're greedy for taking it.

Si.

[WhiteCrow]

Even I can see it's not that simple. At the end of the day, the banks, rotters though they are, are what keep our economy going and things would be a lot worse for all of us if they all crashed, than if they borrowed Government money to stay afloat.

Also note that when the Government put money into the banks, it's "our" money. But when the Government take money from anywhere, it's then the Governments money again and they're greedy for taking it.

Si.

It's called satire Si, it's not supposed to be taken too seriously like this article ...

http://www.thedailymash.co.uk/news/b...-200810021296/

CHANCELLOR Alistair Darling last night warned UK banks could collapse after a series of daring raids by hordes of 'little people'.

Mr Darling claims he is being followedDarling said the leprechauns were sneaking into savers' bedrooms in the early hours, climbing onto their pillow and promising to hide their gold under an old rowan tree.

But, he insists, the leprechauns have a secret plan to bury the gold and then refuse reveal its location, keeping it all for themselves to spend on bottles of stout and mutton pies.

Darling said: "They're about four inches high and are dressed in a fine tunic and breeks, a pair of shiny boots and a tall hat.

"They carry a little purse filled with magic dust and can make themselves invisible, which is of course illegal under European competition rules."

Mr Darling said if you spot a leprechaun you must keep your eye fixed on them at all the times 'otherwise they'll disappear'. He added: "There's one in here right now. I can sense him."

The chancellor is urging savers to keep a medium-sized jar next to the bed, so the leprechauns can be captured, flown back to Ireland and released in a meadow.

But Declan O'Flaherty, Chief Gold Keeper of the Kilkenny Little People, said: "Come now, give us yer gold. I've picked out a beeotiful, magical tree with an AER of 4.5%.

"We'll all have stout and mutton pies!"