I understand that it would take an annoying and quite stressful amount of time to regain your money, but still, I'd rather do my part in helping a bank stay up, than take all of my money out and making matters slightly worse.
The credit Crunch and the Banks
- Thread starter owen2433
- Start date
I understand that it would take an annoying and quite stressful amount of time to regain your money, but still, I'd rather do my part in helping a bank stay up, than take all of my money out and making matters slightly worse.
The problems come when you start looking at business credit and the effects of that not being available... Credit ensures money is available when it is needed, acting as oil to keep the system moving well. Without it, there's a risk that even the most apparently solvent businesses can struggle to have the right amounts of cash at the right times, and a lack of payment or a delayed payment from a client can cause significant problems.
Soldato
^^ what he said. I hope someone tells the american public this before tonights vote but if the credit system isnt fixed it will cost them personally for years after and normal businesses will fail also which will lead to a downward spiral
No way should banks get anything for free though, they really screwed up. B&B for example will be paid for by banks, the government is holding the debt but charging interest to every bank and bs in the uk. Hopefully they figure out something similar stateside
No way should banks get anything for free though, they really screwed up. B&B for example will be paid for by banks, the government is holding the debt but charging interest to every bank and bs in the uk. Hopefully they figure out something similar stateside
Caporegime
Another possibility if no one is willing to buy the debt for a reasonable price, is that the administrators of the bank will call the loan in - giving you a few months notice to find a new mortgage provider or they'll reposses your house and try to get as much money as they can by selling it. This is unlikely to happen although B&B's mortgage book being nationalised last week could indicate that no-one else was willing to take it on...
This term 'credit crunch' is really starting to grate me.
Me too. What idiot came up with this. Probably a newspaper just to make a snappier headline with alliteration.
This term 'credit crunch' is really starting to grate me.
Why is it starting to grate you? It was coined by bankers and investors, because that is what it us - a credit crunch; i.e. inter-bank loaning drying up, bank<->business and consumer<->bank credit drying up too (which crushes credit-reliant businesses, the construction industry and the housing market).
What would you call it?
7 days, and it is very easy. In fact, measures are in place that you can simply walk into the bank and withdraw it as a draft should the worse happen.
Btw, £50k is guaranteed now (as of today). And that is £50k guaranteed for every institution you hold money with - so if you bank with Halifax and HSBC, you have £100k of cover (split between the two).
I wouldnt use the word "crunch". Thats why it is irratating. Why not credit shortage or something? Only reason its being used is because it makes a better headline. It isn't a phrase which immediately comes to mind if you were asked to describe it.
I love the part you've underlined. As if this has been defined as a credit crunch prior to recent events. Banking crises have existed for ages and predate this new found popular phrase.
Last edited:
Really? When it was investors and bankers to coin the phrase well before the newspapers learned what it was? And the term has been used historically in the banking industry? http://news.google.com/archivesearc...6&lnav=d2&ldrange=1990,1992&hdrange=2007,2008
oic!
Like I said, all headlines. Why would you call it a credit crunch?
I love one of the sentences
"The collapse of Japan's second-largest leasing company appears to be worsening a credit crunch in Japan"
Why on would you use the word crunch there? Crunch in this context is a figure of speech. It isn't an intuitive word.
Man of Honour
http://www.businessweek.com/magazine/content/02_32/b3795043.htm is an interesting read, I bet many people are now wishing they paid more attention
Because it is a valid phrase in the banking and finance industry. Will I need to repeat that a third time, or are you clear on the fact?
Just in case: Because it is a valid phrase in the banking and finance industry.
And no one said it was a word. It is a phrase. And of course it is valid - when you crunch something you shrink and pressurise it, which is what is happening here.
Soldato
It's quite interesting watching this from my role in HSBC. Apart from a few boys in Global Markets, there has been little if any intrusion in our lives, infact, our share price is atually higher than when this all kicked off, 12 months ago. Unsurprisingly, this doesn't get any attention from the media, they are helping fuel people's fears. I'd love a paper or two to go under because of all this.
RBS are takinga pasting as well recently, shares were down to 170p each now, that is some drop.
Withdrawing all your savings and fretting about money is a worrying thing. THe last financial institution to go under costing savers their money was in the 1970's iirc. The government may have to own lots of financial services organisations but do you really think they will let you lose your money? Can you imagine the consequenses? If you think it's bad now, it would get massively worse if you make a lot of the county a great deal worse off.
RBS are takinga pasting as well recently, shares were down to 170p each now, that is some drop.
Withdrawing all your savings and fretting about money is a worrying thing. THe last financial institution to go under costing savers their money was in the 1970's iirc. The government may have to own lots of financial services organisations but do you really think they will let you lose your money? Can you imagine the consequenses? If you think it's bad now, it would get massively worse if you make a lot of the county a great deal worse off.
You're telling me, that credit crunch isn't being used because its a nice alliteration of the first 2 consonants?
Too much of a concidence for me, I'm afraid.
OK, and what is life experience in investment banking and global finance?
'Carbon footprint' is worse imo.This term 'credit crunch' is really starting to grate me.
http://www.economist.com/opinion/displaystory.cfm?story_id=11885697
Surely they shouldnt be saying "what became known as". Surely it was always defined as this. The economist of all magazines should have know this right?
I can imagine this crisis just as easily being called credit crash, if that had caught on. After all, after a boom of credit, it suddenly dries up. I bet you would have defended it tooth and nail just as aggressively because people in the past have used the term.
Last edited:
I did, but it doesnt prove anything. I'm not surprised credit crunch has been used before to refer to this. Why not google credit crash.
I also love how the FT in the first few days of this put credit crunch in inverted commas each time.
http://www.ft.com/cms/s/0/4d08ca00-41de-11dc-8328-0000779fd2ac.html
http://www.ft.com/cms/s/7f7160f2-3e...%2F2007&endDate=31%2F07%2F2007&dse=true&dsz=0
http://www.ft.com/cms/s/42cc56b0-3e...%2F2007&endDate=30%2F07%2F2007&dse=true&dsz=0
And there are loads of examples in the first week. About a dozen or so articles which I found via a simple time based search.
Then again you may be right. It was just my opinion or view and I'm far from perfect.
Last edited: