Comments on: mark to market – Timebomb

By: Rob

Rob — Thu, 18 Mar 2010 07:59:14 +0000

Here is some oxygen 😉

By: Golem XIV - Thoughts

Golem XIV - Thoughts — Wed, 17 Mar 2010 19:07:01 +0000

Pilibi,

I have tried to offer some thoughts in "Bank Reform - the lion that had its balls removed" Let me know if this goes any way to meeting your own thoughts.

By: Dylan

Dylan — Wed, 17 Mar 2010 16:29:28 +0000

This article's point about re-inflating the bubble connects and somewhat answers my question on previous post.

The question is "How Long?"

How long can the losses be concealed and will it be long enough for another bubble to rise the tide of insolvency?

By: pilibi

pilibi — Wed, 17 Mar 2010 10:48:07 +0000

EU Hedge Fund Regulation Legislation.
Golem XIV, I have read with fascination and trepidation your thoughts on the financial crisis.Maybe you could comment on the opposition by the UK and Ireland on this proposal – I include this url from today's Irish Times – http://www.irishtimes.com/newspaper/finance/2010/0317/1224266441335.html

By: Golem XIV - Thoughts

Golem XIV - Thoughts — Wed, 17 Mar 2010 10:05:57 +0000

zardoz3006,

Thank you for posting a comment. You don't have to be an expert to have an opinion and express your thoughts. Not here anyway.

For me, comments left are like oxygen. I hate the idea that I am just ranting away to myself.

Any reply no matter how short is wonderful.

Thanks.

As for the housing market - it helps to remember that the banks aren't interested in putting people in homes. They are simply focussed on income by whatever means and especially focused on hiding debts. They cannot allow too many foreclosures and now that they 'won' so much housing stock they cannot allow too great a price drop. Either event kills their claimed solvency.

But bank panic will not originate here unless Spain falls over due to its own bad bank debts and unemployment of 17%!! Bank panic will come from the US as it did the last time. There it is an almighty mess.

By: zardoz3006

zardoz3006 — Tue, 16 Mar 2010 21:51:50 +0000

Thanks Golem for filling in a blank I had regarding why banks would hold onto assets thus artificially keeping house prices high in the UK due to less housing being available. I cannot see how this can work because surely the housing market is like a huge machine which requires affordable housing for first time buyers who in turn release the owners of those houses to move up the chain and purchase the bigger houses. The fact that confidence everywhere is at an all time low, jobs are becoming scarcer, wages are on hold and the cost of living is getting higher would mean that the machine would stall…..forever. Wishing that something is so isn't going to fix the problem.

thanks for doing this blog – I am an avid reader, though not always confident enough on economics to post

By: DM

DM — Mon, 15 Mar 2010 23:44:35 +0000

Hi Golem,

Who needs fiction, when apparently the reality is far more surreal, right? Seriously, very well written again. Thanks.

As it seems, the stinking reality is getting stinkier consistently week by week. Now, that's more or less a fact. But how is it all going to play out? What scenarios are the most probable? I'd love to know what you think, and I'm sure I'm not the only one here. Just a suggestion. :)

Cheers!

DM