Originally posted by teslatrooper
Originally posted by pavmas
I stated that I worked in logistics a good part of my life and knew that the banks were closing down shipping companies on a massive scale and even
calling in shipping loans where the companies were making a profit.
Now anyone with half a brain knows that to shut down a profitable company in times like these you have to be insane and there is now not enough
shipping worldwide to supply food in the amounts we have been used to even if there was no food shortages.
Hi guys, long time reader first time poster here. This thread, and in particular the above statement, is what made me finally take the plunge!
I work in shipping so let me tell you the facts.
There is an oversupply of vessels in the world at the moment with many vessels being laid up because there isn't enough demand/trade for them. This
oversupply looks set to continue. You still have Kenyan runner beans and Thai prawns in your supermarket, right?
The shipping companies that are being closed down are not profitable.
A bank cannot 'call in a loan' unless there has been a breach in some part of the loan agreement. It's a contract like any other. They may refuse
to lend more/extend but they can't change the terms & conditions that they agreed to!
No offense but I stopped reading your post after those initial mis/disinformed paragraphs.
All the best!
European banks, meanwhile, are under growing pressure to cut their exposure to risky and dollar-denominated assets, such as ship and trade finance, to
shore up their reserves as they strive to meet financial regulators' tougher capital rules.
In June Germany's second-biggest lender, Commerzbank , said that it would wind up its ship finance units as stricter liquidity requirements force it
to cut back on capital-intensive activities, a move that has drawn harsh criticism from the shipping industry and lawmakers.
They are going to make shipping food to expensive and with fewer vessels there will be shortages which will affect the poorer countries first as they
simply wont have the cash to pay for the shipping never mind the food.
Im not sure on this 40% and will check it up' (Germany owns 40% of all shipping)
And thats where they are pulling the plug now,
It is up to you if you think there is enough shipping, but say that's the case, the Banks still own all the food futures and what if they dont sell
and shipping companies cease trading and the few that carry on will increase the price even further.
What Im trying to show is that the banks control all our food just like all our money, they control shipping laons and are pulling out big time.
And every loan agreement including credit cards, the lender can call in the debt any time.