Why are other countries banks failing?

I stumbled upon this story at BBC

news.bbc.co.uk...

On Saturday, leaders of Europe's four biggest economies - Germany, France, Britain and Italy - decided against a co-ordinated US-style bank bail-out, while vowing to stabilise markets.

The problems of Hypo Real Estate have put further strain on other financial institutions, which are struggling against a crisis of confidence in the global financial system.

I find it extremely odd that all of a sudden other countries are having a mortgage crisis just like ours. I find it hard to believe that theirs is related to ours. This does nothing to stop my belief that the world is trying to move to a one monetary society.

What do you think?

I'm not a financier or ecomnomist... but isn't becasue oter countries have huge investments in the U.S. like stocks and bonds and things like that?

Because the Us economy was so strong, though unregulated, we all invested money into institutions there and when they fell, alot of other countries lost their money.

Fox.

I dont see it either but nothing is making sense!!!!!

Lets hope someone with knowledge will explain it to us. Of course, there's nothing on tv about it at all.

btw, the Asian markets are wayyy down, so i hear. will need to verify.

:shk:

The bailout of Hypo Real Estate of Germany has indeed been sealed:

edition.cnn.com...

From what I can tell, the main reason is lack of regulation. European banks also have a relatively high exposure to the subprime mess in the US.

We're being told in Australia that our banks aren't nearly as exposed to subprime and have better regulation than Europe.

But there's rumblings of banking and investment arms of other companies being liable to takeovers:

www.abc.net.au...

Australia's economy is reliant on what China is doing - as long as there's enough demand from China to buy the stuff we're digging out of the ground, we should be fine.

At least until there's a slow down in demand from China and our exports fall.

reply to post by fox_3000au
Did not see your reply until now. I dont want you to think i'm not beleiving you.
Thanks for that explanation.

Thanks for the link fox, I find it amazing that all these European countries hate America, yet they can invest in our banks and securities to the point that if we fail, they fail.

I don't even want to begin to think about what will happen if China starts running the show.

Alot of the banks value is on the stock exchange and with the the U.S banking problems the world ecomony has fears the worlds largest economy is going to tumble send it into a deep recession which means less jobs less money for people to spend which means less demand on products so the value of shares tumble. With the fears of banks going bad all investors are worried about investing in bank stocks devaluing the price of their shares effectively wiping out millions off the value of the banks.

Then when a bank loses value it has a harder time accessing investors which cuts back there ability to offer cash at huge interest rates and make a packet because with a lower value of capital the banks have then they have to pay more for the money they borrow hence there bottom line is sygnificantly effected. Devaluing the banks even further

[edit on 10/5/2008 by mullet35]

[edit on 10/5/2008 by mullet35]

Man, the uninvestigated, irresponsible misinformation posts around this place absolutely shocks me.

Carry on.

JK

reply to post by leo123


If that was aimed at me all I was doing was my posting my understanding of the current problem if I was wrong please educate me as I would a appreciate a clear understanding of the situation if this is wrong.

djtempe

Hi, dj. Sorry my opinion was a basic "boil down" of the situation as I see it. Not a very informative one but I was hoping too stimulate the thread for more discussion, which I think I may have.

secretstash

Hi, that wasn't me that provided the link, credit where it's due, it was mattguy404.

leo123

Well instead of turning your nose up at the issue and calling all the posts as "uninvestigated, irresponsible misinformation".

Enlighten everyone.... or is that what your after? someone too ask you for your opinion??

Cheers all, Fox.

www.detnews.com.../20081002/A UTO01/810020413/1001/BIZ

www.bankers.asn.au...

do you mean little things like this

Originally posted by leo123
Man, the uninvestigated, irresponsible misinformation posts around this place absolutely shocks me.

Carry on.

JK

Perhaps you could enlighten all of us as to what we are misinformed about. I would really like to know why the German bank failed.

Affirmative Action style housing lending practices - pushed by a socialist agenda - is a major factor. The other - the NWO wants a major world wide economic crisis so they can take a bigger bite out of the free world.

Originally posted by secretstash

I find it extremely odd that all of a sudden other countries are having a mortgage crisis just like ours. I find it hard to believe that theirs is related to ours.

I hope this explains something for you.

The US banks and mortgage societies were packaging their SubPrime mortgages together and wrongly selling them to investors around the world as stable, mid yield investments. They were doing the same with inter bank loans.

**Oil prices went up in the US, people couldn't repay loans**

Banks start repossessing houses, banks start calling in loans from other banks and all this time, property prices are dropping.

And then there was no actual money around to sort it out because the fed and US banks were basically pretending the money was there in the first place and any money that was ACTUALLY there was caught up in the drop of property prices

And now anyone that invested in the US is in trouble and seeing as the US was the largest investment platform on the planet, everyone is in trouble.

Extreme capitalism at its best.. USA style.. but everyone else is taking the wrap because of bad loans between banks and investments that all stemmed from the greed of commission based mortgage sellers and the institutions they worked for... all the way to the top.

Originally posted by secretstash
Thanks for the link fox, I find it amazing that all these European countries hate America, yet they can invest in our banks and securities to the point that if we fail, they fail.

There's no such thing as hatred between countries in investment based business. The market is global. Business is Business.

The Dislike of the USA by countries in Europe is mainly because of the warmongering and crimes the US government have been committing for the last decade that most Americans have no clue about because of your blanket media and propaganda.

I don't even want to begin to think about what will happen if China starts running the show.

I hope that China does not go under because it can not access the money it is owed by the US. The Chinese economy is so massive that it could be able to keep global economic growth ticking along. If it starts receding, we're all #ed.

Military wise, nobody has anything to worry about.. It looks at the moment like the world might be breaking into 2 military groups. The West & the East/Middle east. It will be a proper global war, not just China bullying everyone.

Ask Bush, he puts his fingers together and says "you know, it turns out, in the economy, there is a lot of interlinking....."

I found this story, also on BBC, that has a timeline that dates all the way back to 2007. Makes you wonder why they waited so long. Was it just to run up the price of the bailout package?


news.bbc.co.uk...

Originally posted by secretstash
I found this story, also on BBC, that has a timeline that dates all the way back to 2007. Makes you wonder why they waited so long. Was it just to run up the price of the bailout package?


news.bbc.co.uk...

Here is the article from the same source that explains how sub-prime mortgages were already infecting some other countries back in 2007 through mortgage bond market.
news.bbc.co.uk...

Don't forget to stop by "THE SUB-PRIME CRISES IN CLEVELAND." Just click the "Deutsche Bank properties" radio button. Mayham, ain't it?

Originally posted by mullet35
reply to post by leo123

 

If that was aimed at me all I was doing was my posting my understanding of the current problem if I was wrong please educate me as I would a appreciate a clear understanding of the situation if this is wrong.

Fair enough, let's begin with the fact that this a global contagion, not a US one.

Let's also begin with the fact that this cyclical end started in the 1970's.

JK