UK banks downgraded by Moody's after the BoE announces QE2

Well, things seems to be speeding up.

Moody's has downgraded the credit rating of 12 UK financial firms including Lloyds TSB, RBS, Nationwide and Santander UK.

Moody's said it now believed the UK government was less likely to support some firms if they got into trouble.

www.bbc.co.uk...

I would guess this ties in with the words from Merv King yesterday the Bank of England.

Mervyn King: this may be worse than the Great Depression

The Bank of England caught financial markets by surprise yesterday by announcing that it will inject £75bn into the ailing British economy over the next four months.

www.independent.co.uk...

So did they know this downgrade was coming and so extended the QE another £75bn or is the downgrade really in response to the news of the QE?

Questions, questions, so many questions especially as the tone of the fear mongering from the BoE yesterday seems to be being backed up by the downgrades from Moodys...

But one thing seems sure as many commentators on ATS have said, we appear to be fast approaching the next drop.. or are we, will they manage to somehow kick the can just a bit further?

Edit: some rubbish spelling and polish title.. while putting my hand up to admit that I find the whole thing utterly confusing and would appreciate some clarity from the more experienced ATS users.

They're just talking about possible inflation on Sky News now.
It may go up to 5% in 2 weeks and then there's another possible review/hike in November.
Are they laughing? I love the way they just throw irrelevant numbers around while people lose their homes.

On a side note, I get to watch Sky during the week and CNN at weekends. It's great watching two variations on the propoganda theme. Luckily I also have access to other national news services in different languages otherwise I would now have the mental acuity of a muppet.

reply to post by Aestheteka


Like you I bounce between the news services to try and build a less biased picture, but never really feel I ever get to that point, but like you at least I try.. What confuses me is why the markets are up?.. none of this is making any sense and I am hoping some smart arsed ATS users could clue me in

reply to post by thoughtsfull


Looks like Moody's just downgraded some banks in Portugal to.

www.marketwatch.com...

LONDON (MarketWatch) -- Moody's Investors Service said Friday that it has downgraded the senior debt and deposit ratings of nine Portuguese Banks by one or two notches and also cut the standalone ratings for six of the banks. The downgrades conclude a review initiated on July 15, following the downgrade of the Republic of Portugal to Ba2 from Baa1.

reply to post by buni11687


Thanks the news seems to be coming think and fast that the establishment can no longer contain the problems they are facing.

Nervousness is growing in Whitehall that the government might have to inject further capital into Royal Bank of Scotland as part of a European effort to recapitalise the continent's banking system, reports the Financial Times.
FTAdvisor

ETA: from the same source

Bank of England's QE2 may reach £500bn, economists warn

The Bank of England may have to inject as much as £500bn into the economy to rescue Britain's faltering recovery, economists warned after the central bank shocked markets by restarting its money printing programme, reports The Daily Telegraph.

And if this is what the amount they fear the UK might have to pump into it's economy, I have to wonder (scared I might add) what the figure would be for Eurozone.

reply to post by thoughtsfull


I'm dreading this as I live in a Euro country and we don't really have an economy as it is.
Slovakia tried to hold out against the Greek bailout (the last country to do so) but last night it was announced a 'compromise' had been found. Most likely 'shut up Slovakia, you're not big enough to count'. We will have to go massively in debt to pay off Greece. I was told by an economist yesterday (although i've probably already forgotten the figures) that we are currently at 40% debt on GDP. The Greek bailout will put us at 70% and we have an EU limit of 60%. Those three figures might all be 10% higher. It's a 50/50 thing.
Cost of living has risen here phenomenally over the last decade. In my area, the average salary is 400 Euros per month (540 USD) but we pay 1.47 per litre (USD7.80 for a US Gallon). Utilities are insanely high. Food and clothes are almost unaffordable. Plus we have the gypsy problem and high unemployment and pensioners which means our Social Insurance monthly fees keep going up
And we haven't even bailed out Greece yet.
I was thinking about starting a small business in England but the UK looks like it is about to descend into an apocalyptic Dark Age. There are just way too many people crammed onto that little island

How bad will things get? I mean are we headed to an apocalyptic dark age? Is this the logical conclusion to the whole financial meltdown. How will an apocalyptic dark age look? I really do fear the possibility of some kind of Mad Max future but just can't imagine how it would look.

reply to post by woodwardjnr


muscle car, leathrs and a sawn off...
add a chainsaw and and we can have Evil Dead 2

reply to post by woodwardjnr


Funny how all those years ago when Mad Max came out, it sent shivers through me. It some how sat quite comfortably that I was looking at our future and this is what we could expect. I recently bought the box set of all three films, and only a couple of days ago I had a 'pull' to watch he first one again with the feeling that there would be a clue somehow in the film!

I will continue to withdraw any money after any DD's need to be paid out of the bank each time I get paid....I have been doing this since before Christmas, and at least feel a little comforted by the knowledge that if a bank run starts here in the UK,like it did in 2008 with Northern Rock, at least I will be ahead of the game with some GOOD money. (Get Out Of Dodge)


Rainbows
Jane

reply to post by Aestheteka


Yep what worries me the most is the real impact has yet to be felt on the street.. the whole scenario of pumping another £75bn just seems insanity and will only make things worse in the long run.

I don't like the prospect of a Mad Max/Evil Dead type situation, especially given the people around here already have a fetish for burning or blowing things up.

reply to post by woodwardjnr


More unemployment and food and other bills going right up.
Mybe the goverment knew this and might explain all the press
releases over the last year they been putting out against anyone
on benifits.

So when it rises we all think of them as work shy low life.

But most of us think that already untill its our turn to be
made redundant.

reply to post by thoughtsfull


Pump and dump, sucker's rally, etc. They're building up the markets and then crash it around 4th monday of this month. Smart money shafts dumb money. Happens all the time.

reply to post by eldard


Thanks for your input
So you think they are climbing on the diving board then?

reply to post by thoughtsfull


they are already on top of the board, they'll stay there to entice the gullible to climb, too. And when it's time to go down they'll be in parachutes leaving the suckers to dive into a waterless pool.

reply to post by eldard


I guess we are up to the suck and see moment as to what will happen next.. from what I have seen and from what I have read (in a historical context) these things never end well. *shakes head* I guess I ought to focus on tending my kitchen garden