What a day at the markets! Its like every major stock market had set itself a 5% fall target for Monday...To cap it all, there was some investment pundit on CNBC howling "take any money that you'll need in the next 5 years out of the stock market!". Talk about adding fuel to the fire.
The issue is simply this. The wholse funding market has pretty much collapsed as banks don't want to lead to joe blogs bank ltd which then collapses tomorrow. So far, the collapsing banks are those with high dependancy on such funding. Hence why why all the big ibs have either collapsed or changed model to allow deposit-taking. And why mortgage lenders are also on the rack. Again, many are merging or collapsing.
Next comes other economic sectors. Iceland banks for example have use wholesale funding to fund Iceland business which have then come to buy retailers in the UK. You couldn't make up what is likely to happen next...
2 comments:
Jim Cramer is a bozo. Why the let him appear on TV is beyond me.
You up late Ssem! Si its almsot huko...
The lady with him looks like she is talking to a nutter lol.
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