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Europe on the verge of Banking CRISIS
mickbirch2000
Posts: 745 Forum Member
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Alistair Darling painted a very bleak & dangerous picture on Andrew Marr this morning, perhaps because he is no longer in government he is able to speak candidly, we are on the verge of another banking crisis in Europe caused by the apparent inability of the politicians to engender any confidence that they have an answer.
We now have David Cameron calling for policies for growth & jobs to be top priority in Europe, presumably he's forgotten that Britain is part of Europe because Osborne is sticking to plan A we were told a few days ago & austerity + deficit reduction + cutbacks are top priority. To be fair plan A probably would have worked if it wasnt for the rest of Europe's economies now being very weak. Time for plan B, lets hope Obama has talked sternly in to Merkel/Cameron the main proponents of AUSTERITY . Are we about to see a u-turn George? how are you going to explain it? With people withdrawing millions of Euros from their banks something needs to happen quickly, the contagion is speading & hopefully will focus minds again....:mad:
We now have David Cameron calling for policies for growth & jobs to be top priority in Europe, presumably he's forgotten that Britain is part of Europe because Osborne is sticking to plan A we were told a few days ago & austerity + deficit reduction + cutbacks are top priority. To be fair plan A probably would have worked if it wasnt for the rest of Europe's economies now being very weak. Time for plan B, lets hope Obama has talked sternly in to Merkel/Cameron the main proponents of AUSTERITY . Are we about to see a u-turn George? how are you going to explain it? With people withdrawing millions of Euros from their banks something needs to happen quickly, the contagion is speading & hopefully will focus minds again....:mad:
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And the unfortunate people who have their savings in those banks?
And the small businesses who have lines of credit with those banks?
And not forgetting the sheep effect, we see one bank go under, we think that our bank will be next so we withdraw our funds, causing that bank to fail.... and the next one, and the next one and so it continues .....
We quickly move to a situation where few people have any confidence in any bank, preferring to see their savings and wages in hard cash, and where the whole banking system grinds to a halt - no cheques, no payments, no hard cash, no loans, no mortgages.
The savings are guaranteed.
So when your bank goes bust, you will not notice any difference at all. It will be banking business as usual.
Agreed.
Thus confirming when politicians are in government, they do not speak candidly.
At this point, I'm reminded of the story when RBS came within 2 hours of collapse back in October 2008.
On their way to crisis talks with the government, a senior RBS official told their spouse to go to a cashpoint and withdraw a load of cash out.
The Greeks are doing the same.
And that ignores the inevitable long delays in being able to make a claim and then actually get that money from the Government.
As well as the issues around those people who were unfortunate enough to have their salaries paid into that bank, as well as the businesses who had their accounts there 9and are now no longer able to pay their employees as they cannot access their funds).
And by which time, other people will have lost confidence in other banks ......
I answered the question. The savings are guaranteed.
Or maybe not on all counts. Maybe there will be hundreds of thousands of people with no access to any cash at all, and no means to pay any automated bill.
Print the money. Printed £325 billion so far.
Exactly.
If your bank collapses, expect delays. And can you be sure you'll have continuous uniterrputed trouble free access to your money, during the your bank's collapse ?
Spot on. Expect people to revert to good old cash. I mean the cash in your pocket.
Because if your bank collapses, for a while, all you will have is the cash in your pocket.
I know.
But what if you wake up when morning to find your bank had collapsed overnight. Can you guarantee online access to your bank account ?
In practical terms, how will all this work when your bank has just collapsed and has stopped trading ?
Or maybe not on all counts. Maybe there will be hundreds of thousands of people with no access to any cash at all, and no means to pay any automated bill.
And that will have knock-on effects on other traders and businesses, and other banks as incoming funds dry up.
I'm willing to guess the government have highly secret emergency plans to deal with this.
For starters, a minister will declare a State of Emergency under the Civil Contingencies Act 2004. This will not require consultation with parliament.
Whoops.
And at this point, the government declares a state of emergency and steps in. They will have unlimited powers and will not need to consult parliament or the public.
Yes, it would not be a pretty sight. And pretty uncomfortable for everyone (except the bankers of course)
Exactly.
The Bank of England have contingency plans for a euro collapse. But won't say what they are. Expect the government to have similar plans.
After all, with multiple banking failures, we would still expect the lights to work, running drinking water and there be some food in the shops.
On Friday, watched Newsnight and the Robert Peston programme on the Euro meltdown. I really wish I hadn't.
Nobody really knows just awful this is going to be.
Thanks for that Angela Merkel. :rolleyes:
Oh grow up man.
Not sure what the outcome will be - but we cannot carry on drifting in a permanent state of crisis.
No doubt the usual solution will apply - go for more stimulus and leave our grandkids to pick up the bill!