An economic collapse ahead?

[jimslip]

Being the BGAFD prophet of doom and gloom, does anybody else believe we are going to witness an economic meltdown in the weeks ahead, with sky rocketing interest rates, causing the bankruptcy of thousands of home owners?

[jimslip]

Ah yes, the Bank of England rates could drop, but because of the panic amongst the banks they are raising rates independently of the Bank of England.

[Trumpton]

warren zevon rip wrote:
>
> The media (John Humphrys was appallingly ignorant on Friday
> morning - he kept going on about the fact the NR had lent a lot
> of money this year - well, John, that's what banks do!) and
> some very stupid people have managed to create a banking run
> unseen in the Western World since 1930s' USA.

NR customers have withdrawn over GBP1.5 billion in the past two days.

This is based I'm sure on the remarks made by twunts such as Humphrys.

[jimslip]

I think the seeds of disaster are sown in the very image of people queuing up to get their money out of the NR. It's only confidence in the system that keeps it buoyed up, if this for some reason is eroded, the system itself can go into meltdown.

If there was confidence, people would have listened to the official statement of "Everything's ok".

The world economy is run like a casino and there are people and institutions out there, that sensing the possibility of making a buck, can cause a collapse in the stockmarket or a run on a currency, in order to make money at a later date.

[jimslip]

Intervention did not help in the early 90's when that Soros guy caused a run on the pound, I believe. In a way I believe we are more vulnerable now than in the 30's because of the instant communications available around the world. A panic can be set of in seconds.

I think in a way, intervention, in itself, instigates panic.

[jimslip]

Well, it did collapse for thousands of people who lost their homes.