[Politics] Bigger economic problems incoming

[chip]

Story in the FT

Credit Suisse reassures investors over bank’s financial strength

Executives contacted clients after credit default swaps suggested growing worries over group’s health

https://www.ft.com/content/c62bea1f-2929-4473-838d-665dc6c45f83

Seems they have been spending the weekend "
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https://www.ft.com/content/c62bea1f-2929-4473-838d-665dc6c45f83

The executive denied recent press articles that the bank had formally approached investors about potentially raising more capital, insisting that the bank was trying to avoid such a move with its share price at record lows and higher borrowing costs due to rating downgrades.

Having seen Credit Suisse’s share price drop more than 25 per cent last month to below SFr4, chief executive Ulrich Körner sent a company-wide memo on Friday to try to reassure staff over the bank’s capital position and liquidity."

DB has been a basket case for years.

Bring on the apocolypse ...

 

[cirC]

This video starting at 12mins 40sec gives some insight into what has happened over the last 15years but goes way back to when banks made their own rules.

https://www.youtube.com/watch?v=mzdmVZuW4KM

After the monologue skip forward a couple of mins( missing the ads) then there is a discussion, enlightening.

 

[Dr Bandler]

What's caused that though, do you know? Are these company specific issues?

It is about their exposure to Credit Default Swaps, which apparently is higher than in 2008. A juicy side rumour is that the Vatican has removed all of its money from Credit Suisse.

One has to say, if this goes down what was the point of all of the EU Basel regulations, and the costs that the banks incurred implementing the capital and reporting requirements? I know a bit about this having worked on CS's Basel programme. They spent huge amounts as they were regarded as "too big to fail" in Switzerland. Other banks too.

 

[Giraffe]

The world is a mess and we could be facing the biggest Western recession we have faced since the early 90s. What we do or don't do as a country is probably going to make very little difference I fear. Nations debts after Covid are massive. Retail is dead. Banks and consumers are not used to high interest rates. The fuel crisis is long term pain. The solution is slow to come. It's a recipe for disaster that's for sure.

 

[Harry Wilson's tackle]

Yup, some deep trouble coming up. What we're experiencing now is just the tip of the iceberg.

The world needs a complete remodeling. Growth, in the current sense, is a dead concept. Same with how we percieve the job market, since in 10 years one in three current jobs will be replaced by AI and automation. The current systems will collapse under that. Our percieved purposes and values are going to have to be entirely reconfigured. Either that, or one way or another the human population will decrease to sustainable levels.

In the short term, naturally there will be financials institutions etc. in trouble. Most of the economy today is built on what may have been old truths but are today lies rapidly going entirely obsolete. There's a lot of money, and not a lot of value. In the end that just doesnt work.

How hard will the global economic 'system' work to ward off an event horizon? If I were Putin I might be tempted to push for one (when I've run out of coke and steroids and the latest hooker has given up trying to stimulate my flaccid penis).

 

[Harry Wilson's tackle]

The world is a mess and we could be facing the biggest Western recession we have faced since the early 90s. What we do or don't do as a country is probably going to make very little difference I fear. Nations debts after Covid are massive. Retail is dead. Banks and consumers are not used to high interest rates. The fuel crisis is long term pain. The solution is slow to come. It's a recipe for disaster that's for sure.

Not having that. That's the 'don't blame the tories' agenda.

I don't recall your lot saying anything remotely similar when Brown was busy saving us from the worst of the last meltdown

 

[Harry Wilson's tackle]

This video starting at 12mins 40sec gives some insight into what has happened over the last 15years but goes way back to when banks made their own rules.

https://www.youtube.com/watch?v=mzdmVZuW4KM

After the monologue skip forward a couple of mins( missing the ads) then there is a discussion, enlightening.

What on earth might a very rum archeologist have to say of any value about the economy?

 

[LamieRobertson]

Thank goodness we have someone in charge who'll handle this as well as Gordon Brown did.

Have we anymore gold to sell?

 

[Harry Wilson's tackle]

Personally, I'm diversifying my money into a portfolio that is more likely to hold value better against inflation than money in the bank. Usual suspects like Gold, Silver, commodities etc, and a bit of crypto albeit that's higher risk. I'm also trying to pay down as much of my (pretty large) mortgage as possible before my fixe rate ends in a year.

Just pay off the mortgage. The rate is always set higher than inflation. I paid mine of some time ago and have been immune to the slings and arrows of outrageous ********s ever since.

 

[Harry Wilson's tackle]

Have we anymore good to sell?

Brown rallied round the players and mitigated against the worst. He is an unsung hero. I swallowed all the BS against him at the time, to my shame, but discovered later that he got it done, and sought no glory. Top man. A bit weird and manse, but top The antithesis of Johnson.

 

[Swansman]

It is about their exposure to Credit Default Swaps, which apparently is higher than in 2008. A juicy side rumour is that the Vatican has removed all of its money from Credit Suisse.

One has to say, if this goes down what was the point of all of the EU Basel regulations, and the costs that the banks incurred implementing the capital and reporting requirements? I know a bit about this having worked on CS's Basel programme. They spent huge amounts as they were regarded as "too big to fail" in Switzerland. Other banks too.

Banks are intrinsically dangerous and flawed structures. Their only way of growth is through putting others in deb. Debt is obviously not always a bad thing, but when debts of states, companies and households are always increasing, it is obviously not sustainable since it will require eternal growth to pay those debts, and eternal growth is a dead concept other than among the most market-religious neo-liberals.

The banking system needs to be non-profit or very heavily regulated, or it will sooner or later either enslave us or collapse under itself. None of the paper tiger regulations coming through since 2008 are going to make any real difference. The banking system needs to be reformed completely.

 

[mikeyjh]

Best way to avoid these situations is definitely to remove the cap on bankers bonuses.

 

[clapham_gull]

This video starting at 12mins 40sec gives some insight into what has happened over the last 15years but goes way back to when banks made their own rules.

https://www.youtube.com/watch?v=mzdmVZuW4KM

After the monologue skip forward a couple of mins( missing the ads) then there is a discussion, enlightening.

That man has never given an insight into anything ever.

He's a complete joke who disappeared up his own right wing conspiracy laden sweaty hairy ******** years ago.

 

[beorhthelm]

Not having that. That's the 'don't blame the tories' agenda.

financial data outside UK is atrocious. Netherlands just reported 17% inflation. PPI/PMI numbers, prices for manufactures are breaking records. with gas shortage and rationing across Europe this winter, we'll all be in hard recession by the spring. we might get away with a short and sharp if the US market picks up, but they are trying to keep inflation down... so interest rates go up, harming investment across all economies just when we want to boost growth. meanwhile our politics and politicans are obsessed over a 1bn tax cut.

 

[Sirnormangall]

How hard will the global economic 'system' work to ward off an event horizon? If I were Putin I might be tempted to push for one (when I've run out of coke and steroids and the latest hooker has given up trying to stimulate my flaccid penis).

Just for clarity, are the words in brackets about you or Putin?

 

[Swansman]

Not having that. That's the 'don't blame the tories' agenda.

I don't recall your lot saying anything remotely similar when Brown was busy saving us from the worst of the last meltdown

Unless the Tories are in charge of the entire world, he has a point though.

Not that they seem to be doing much to make the situation easier, but the issues are bigger than what any individual party could cause.

 

[Change at Barnham]

This all sounds very worrying. Is there anything we should be doing?

 

[Harry Wilson's tackle]

financial data outside UK is atrocious. Netherlands just reported 17% inflation. PPI/PMI numbers, prices for manufactures are breaking records. with gas shortage and rationing across Europe this winter, we'll all be in hard recession by the spring. we might get away with a short and sharp if the US market picks up, but they are trying to keep inflation down... so interest rates go up, harming investment across all economies just when we want to boost growth. meanwhile our politics and politicans are obsessed over a 1bn tax cut.

Indeed. The Truss solution to a broken leg? Exercise!

 

[Harry Wilson's tackle]

This all sounds very worrying. Is there anything we should be doing?

This'll work

 

[Baldseagull]

Share price is not always a reflection of the health of a company. It is often a reflection of sentiment.

The sentiment appears to be "they're in trouble".