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The Financial Crisis

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    #32
    Monty Burnz
    Closed Accounts Posts: 12,455 ✭✭✭✭Monty Burnz


    SafeSurfer wrote: »
    A conspiracy doesn't necessarily have to be a secret.

    http://olesiafx.com/Kathy-Lien-Day-Trading-The-Currency-Market/George-Soros-the-Man-Who-Broke-The-Bank-Of-England.html

    The financial system is basically faith based. Based on confidence. Of course powerful hedge funds can attack businesses like banks or countires like Greece which they see as vulnerable. It's basically a massive game of bluff. The very institutions that are making these bets are safe in the knowlede that if they lose they will be bailed out by the citizens of the very countries they have bet against.

    It's faith based, but so is almost every human institution. The Government, the law, currency - it only works because (most of us) put our faith in them. We accept cash from ATMs because we have faith that the supermarket will accept them.

    The too-big-to-fail issue is a genuine problem - a cancer, in fact, as discussed already hereabouts. I hope the authorities have the balls to take action to resolve it.


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    #33
    Jonny7
    Registered Users Posts: 6,696 ✭✭✭Jonny7


    SafeSurfer wrote: »
    I think you will find that Lehman's exposure was to sub prime mortgage debt not sovereign debt.

    If you have a point make it.

    Almost everyone was exposed - Lehman Bros was not "saved" by the taxpayer - financial institutions at the time had no idea that they would be bailed out if they failed so didn't make policy based on that.


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