Comments on: Why did the shares in European Banks and BoA collapse? https://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/ Author of THE DEBT GENERATION Thu, 06 May 2021 15:02:38 +0000 hourly 1 https://wordpress.org/?v=6.7.1 By: steviefinn https://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-5011 Tue, 30 Aug 2011 13:14:16 +0000 http://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-5011 This blog updates a list of payments made for Irish banks to bondholders as they happen. It makes sickening reading in light of the vicious cuts.

http://bondwatchireland.blogspot.com/

It's headed by a guy named Diarmuid O Flynn, a sports journalist for the Irish Examiner. He has been banging his head against the wall of apathy in the Republic, even trying a bread & water fast to try & get publicity. He could do with a bit of support.

http://thechatteringmagpie14.blogspot.com/

]]> By: wirplit https://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-5010 Tue, 30 Aug 2011 11:57:22 +0000 http://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-5010 Another brilliant analysis so thanks again. Amazing constantly to be reading stuff in the mainstream that you signaled six months or more back. i
ts a steep learning curve not least getting through all the Finance mystification acronyms but hey ho two more CA and TCE ratio! How to look at banks with a degree of understanding…
Cant help thinking that a certain degree of general economy crisis allows them to swing another bout of Bank stuffing to occur… Save them of we are all doomed…
These short sentences should be on car bumper stickers across the US …

"The US banks are not lending but not because they don't have the money. The Big US banks have $1.7 trillion on overnight deposit in the NY FED. Most of that is QE money. It is doing nothing for anyone except the banks. 'US tax payers 'gave' it to them and the banks are now being paid interest on it … by the tax payer. -Nice deal."

To spread you to wider audience constantly firing you off to Reddit etc but it might well be the Discussion Boards of Investors that the real take up comes alive.

But even as I write this I just hear on BBC News that Bank shares are rising again and things are "looking more positive"…

]]> By: andrew https://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-5000 Mon, 29 Aug 2011 21:05:09 +0000 http://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-5000 No, it was a personal e mail, recounting the experience that a long standing friend of mine had this afternoon in his bank ( twenty years client.

I would pay attention to such anecdotes. They are a local clue to some wider problems

]]> By: Greg https://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-4999 Mon, 29 Aug 2011 20:50:42 +0000 http://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-4999 @andrew

Sounds like a fake circular email to me. Wouldn't pay much attention to it

]]> By: erictheking https://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-4997 Mon, 29 Aug 2011 18:29:30 +0000 http://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-4997 Thanks for your thoughts Paddy.

Neil, I remember reading an article not so long ago about automated trading and its consequences for market volatility. Madness. But then as Golem pointed out the traders love a bit of volatility.

It's JG Ballard's psychopathies isn't it? We've had 'rational choice' theory rammed down our necks for over thirty years. I've lost count of the number of times ordinary people have told me, 'greed is human nature' (to the exclusion of all our other values and characteristics). And now we are seeing the fruition of that credo – the markets are falling apart. Perhaps this is why the gentlemen at the Telegraph are wringing their hands as much as anyone else – when trust goes, contracts go by the way-side.

But anyway I'm off to see if i make a killing on silver… ; )

]]> By: andrew https://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-4996 Mon, 29 Aug 2011 18:29:29 +0000 http://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-4996 interesting e mail just received

friend of mine had card repossesed by BNP whilst inside overdraft limit
when he phoned BNP, he was sent around 4 branches.
After #4 he went crazy
woman on phone said ' wait " – put him on private line

then the operator said : " you seem like a nice bloke…. so i have to tell you….THIS BANK IS GOING DOWN. SACKING ALL STAFF. NO ONE IS LEFT <TO HELP YOU. I SUGGEST YOU LEAVE NOW .

so he did.

]]> By: Neil https://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-4994 Sun, 28 Aug 2011 19:35:50 +0000 http://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-4994 You can probably blame computer programs set up by humans as much as human traders:

"In the financial markets, code is increasingly becoming king as complex number-crunching algorithms work out what to buy and what to sell.

Up to 70% of Wall Street trading is now run by so-called black box or algo-trading.

That means, along with the wise guy city traders, banks and brokers now employ thousands of smart guy physicists and mathematicians.

But even machine precision, supported by the human code wizards, doesn't guarantee things will run smoothly.

In the so-called Flash Crash of 2.45 on May 6 2010, a five minute dip in the markets caused momentary chaos.

A rogue trader was blamed for the 10% Dow Jones index fall but in reality, it was the computer program that the unnamed trader was using that was really to blame.

The algorithm sold 75,000 stocks with a value of £2.6bn in just 20 minutes, causing other super-fast trading algorithms to follow suit."

http://www.bbc.co.uk/news/technology-14306146

]]> By: cynicalHighlander https://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-4993 Sun, 28 Aug 2011 17:34:53 +0000 http://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-4993 Paul Woolley: "The Market Has Become Dangerous For Humanity…It Isn't Reaching Equilibrium, It Is Falling Into Chaos"

The developments in recent weeks have made it quite clear that the markets don't function properly. Things are spinning out of control and are potentially dangerous for society.

]]> By: Paddy Fields https://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-4992 Sun, 28 Aug 2011 17:11:02 +0000 http://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-4992 RE my previous post ; perhaps DSK was going to suggest default by Ireland and Greece as a way of saving the wider EU economy ( monies already pumped into these could have gone towards saving the financials of the biggest losers on Greek default)..
Golem
With regard to the US Berlin battle, I've read lots of posts and comments on this, I am getting other ideas on this now, could it be that Germany will drop out of the EU and make some sort of alliance with the US to save it's ass. There is a game being played here under all of this crap, Merkel et al are not up for a eurobond because, let's face it we all still remember the past and do not trust each others motives/ intentions so will not have a big group hug and share each others assets to move forwards in a stronger union. This leaves a break-up as the other option so do the PIIGS go or do the Germans leave? My money is on Germany running – to America.
@erictheking
If I were in your position I would pay as little as possible right now, invest in silver(not paper silver, get physical and if in Irl get scrap as no vat that way if you have currency silver) When it hits the fan the value of silver will rise a lot, sell when you feel it's peaking and then go and make a settlement with loans/credit cards for a reduced amount.- just my thinking on it in the absence of other ideas!

There seems to be a lot of articles across the newspaper media this weekend re the markets crashing/things turning for the worse, something big is on the horizon when the irish papers are printing about debt forgiveness and asking why none of our politicos or bankers have been prosecuted for their part in the ruination of the state.

]]> By: richard in norway https://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-4991 Sun, 28 Aug 2011 16:59:57 +0000 http://www.golemxiv.co.uk/2011/08/why-did-the-shares-in-european-banks-and-boa-collapse/#comment-4991 Stevefinn

I have been wondering about santander as well, they seemed to have come from nowhere and grown by buying up other banks. I suspect that their buying spree involved a lot of leverage which would make them very vulnerable. But I know nothing, I just started thinking about them a few days ago after seeing a TV advert

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