2007-09-16 08:51:21 · 15 answers · asked by k Marx ii 3 in Politics & Government ➔ Politics
They are in deep do. The voodoo economics of using consumer debts to fund and finance takeover bids in billions and the subsequent failure of the mortgage markets in the US has led to a cash shortage. Even HSBC refused an interbank loan to Barclays bank a month ago. A taste of things to come?
2007-09-16 09:57:13 · answer #1 · answered by Maxi Robespierre 5 · 2⤊ 0⤋
Yes, By breaking the rules of fiscal responsibility the banks are now well past the 10% foreclosure rate that is the definition of an insolvent Bank.
Did you see on the news about the run (mass withdrawal of customer accounts) from that bank in England last week?
As long as it's only one or two banks the government can bail them out, once a bunch start having runs, the entire system collapses.
A bank may have $6 Billion in assets (loans) but only $500,000 in cash in the vault. Once that is gone no other bank is just gonna "give" them enough to hand out to all the customers......
that bank has to publicly say it is out of money and that's the end of that bank.
it doesn't get to just tell people to wait for their money if they want it now.
2007-09-16 08:58:41 · answer #2 · answered by easy_game_101 2 · 1⤊ 1⤋
It's a temporary problem caused by the sub prime mortgage lending in America. European Banks lent money to the American lenders, then the sub prime mortgagees couldn't repay the loans, so the European Banks didn't get their money back. Now they are struggling a bit, but will soon get over it. Apart from Northern Rock who have been ruined by the Bank of England issuing a statement that they were helping out NR, causing all the people with money invested to panic and withdraw all their money, making the situation for NR much harded than it need have been. They will be taken over soon.
2007-09-16 08:58:03 · answer #3 · answered by Ahwell 7 · 1⤊ 1⤋
the banking system is in the condition that the fed and world bank says it is in , when the banking system is concocted out of pure fiction, and money and wealth are created out of thin air
, and the united states government pays interest on money the fed prints all on it's own, allright I will stop right here, what is your definition of trouble , you are assuming that the banking system is real, it is a prewritten script that is modified to promote a certain agenda ,it is called financial slavery, now go out and spend!!! and as far as running out of money , you are only out of money when you are out of paper and ink.
2007-09-16 09:03:10 · answer #4 · answered by CHRIS S 2 · 0⤊ 0⤋
No, it is not in trouble. There is a problem with liquidity for some types of home loans. Many people would question if it is really a problem.
Your money in banks is insured by the federal government (FDIC) up to $250,000.
2007-09-16 09:15:13 · answer #5 · answered by a bush family member 7 · 0⤊ 2⤋
Big Time the derivatives market is ready to collapse and there's virtually no gold left in reserve as it has all been brought up by the Rothschilds.
They want to generate world depression like they did last time
once they created the Federal Reserve for themselves.
2007-09-16 09:27:55 · answer #6 · answered by John M 4 · 1⤊ 1⤋
No, some people were just born to panic. Like at Northern Rock, anyone with less than £35000 has their money guaranteed in law, so they neednt withdraw
2007-09-16 09:12:19 · answer #7 · answered by Phil McCracken 5 · 0⤊ 1⤋
Massive debt. record foreclosures, historically low USD, huge trade embalances, Negative savings rates....
What would make you think the banking system is in trouble?
2007-09-16 08:56:38 · answer #8 · answered by ? 6 · 1⤊ 2⤋
Has been since the Great depression of the 1920's.
2007-09-16 08:55:18 · answer #9 · answered by ? 6 · 2⤊ 1⤋
I've always had trouble with my banking system,, haven't you??????
2007-09-16 08:55:54 · answer #10 · answered by Bio Hazard 4 · 0⤊ 2⤋