When Skies Are Grey Posted September 15, 2008 Share Posted September 15, 2008 With Lehman Bros filing for bankruptcy protection over the weekend...AIG asking the Fed for a financial lifeline...the FTSE in freefall....is there any good news around the financial world! Perhaps this is just the markets re-aligning, maybe its comeuppence for the speculators and hedgers have have controlled the economy for too long...its still somewhat worrying. That said, the price of crude is dropping too...so that means our utulity bills should fall....right???? Link to comment Share on other sites More sharing options...
Mutley Posted September 15, 2008 Share Posted September 15, 2008 AIG looks next... Link to comment Share on other sites More sharing options...
ai_Droid Posted September 15, 2008 Share Posted September 15, 2008 I think it's time we all brushed up on our farming skills Link to comment Share on other sites More sharing options...
When Skies Are Grey Posted September 15, 2008 Author Share Posted September 15, 2008 Merril Lynch has been swallowed up by BoA...the way its going we could end up with just one World Bank!! Thank God all my money is in gold bullion hidden in a Swiss numbered account Link to comment Share on other sites More sharing options...
manshimajin Posted September 15, 2008 Share Posted September 15, 2008 With Lehman Bros filing for bankruptcy protection over the weekend...AIG asking the Fed for a financial lifeline...the FTSE in freefall....is there any good news around the financial world! Perhaps this is just the markets re-aligning, maybe its comeuppence for the speculators and hedgers have have controlled the economy for too long...its still somewhat worrying. That said, the price of crude is dropping too...so that means our utulity bills should fall....right???? A number of years ago an Economics Professor won the Nobel Prize for Economics for his theory that in summary said 'don't put all your eggs in one basket'! That has never been truer than at the moment. Having said that I am keeping my fingers crossed that there is a big difference between the likes of Lehman Bros. and the high street trading banks as they have a wider range of activities and income sources. A bit of a platitude but maybe there are some benefits in having this correction. As you say oil prices are coming down (Governments please act to make sure that these falls are passed on). The high risk/high bonus financial practices may be brought back to a more sensible matching of investments and risk. The same applies to house prices - as long as governments don't intervene in the market to protect developers, estate agents and advocates there may be a chance that house prices will become significantly more affordable as for example the UK market seems 30-40% over priced and the Irish market more like 50-60% - based on long term historic relationships between house prices and incomes. Too greedy banks using too many financial instruments allowed things to bubble. The other thing I hope is that the financial regulators will be disciplined and held to account for their failure to regulate prudently. The UK FSA was set up supposedly to protect the consumer - something it has charged a lot to do and failed to achieve. Wonder how this will flow through to the Manx economy, dependent as it is on the finance sector, internet gambling and ship and aircraft registration. Maybe it means we will have to seriously resurrect tourism rather than the tokenism it has been treated with to date? Worrying times but not the end of the world. Link to comment Share on other sites More sharing options...
The Godfather of Manx House Posted September 15, 2008 Share Posted September 15, 2008 Even more disturbing is the fact that The Courthouse has withdrew it's licence application apparently. Anyone else heard this ? (Police objected along with EIGHT others...all alledgedly, of course)... ...GOMH*... Link to comment Share on other sites More sharing options...
jimbms Posted September 15, 2008 Share Posted September 15, 2008 Nice, 11 months ago when I sold the old house I had a gut feeling things where due to go tits up so I decided to rent and put the money where I could earn some interest, well it has gone tits up house prices are slowly coming down and interest rates about to go up, so far what I have payed in rent is less than what the combination of house price drop and intrest from the money I have gained so for me it's a bonus. Link to comment Share on other sites More sharing options...
pongo Posted September 15, 2008 Share Posted September 15, 2008 Nice, 11 months ago when I sold the old house I had a gut feeling things where due to go tits up so I decided to rent and put the money where I could earn some interest Ah yes. But are your savings completely safe? The banks might tumble one by one like dominoes. * None of the banks are 100% - and we are discouraged (by the tax complication) on the IOM from investing in NSI accounts which are 100% guaranteed by the UK Treasury. There is no equivalent on the IOM as far as I know (although I don't know much). (* only joking - I'm sure they are fine.) Link to comment Share on other sites More sharing options...
ai_Droid Posted September 15, 2008 Share Posted September 15, 2008 Nice, 11 months ago when I sold the old house I had a gut feeling things where due to go tits up so I decided to rent and put the money where I could earn some interest, well it has gone tits up house prices are slowly coming down and interest rates about to go up, so far what I have payed in rent is less than what the combination of house price drop and intrest from the money I have gained so for me it's a bonus. What makes you think the value of the house you sold has dropped? Link to comment Share on other sites More sharing options...
When Skies Are Grey Posted September 15, 2008 Author Share Posted September 15, 2008 so the options are spread your savings in different financial instituions but run the risk of them going under or keep your eggs in one stable basket and have the meagre depositors protection scheme to fall back on or keeping it all under your bed We're all doomed. Link to comment Share on other sites More sharing options...
jimbms Posted September 15, 2008 Share Posted September 15, 2008 Nice, 11 months ago when I sold the old house I had a gut feeling things where due to go tits up so I decided to rent and put the money where I could earn some interest, well it has gone tits up house prices are slowly coming down and interest rates about to go up, so far what I have payed in rent is less than what the combination of house price drop and intrest from the money I have gained so for me it's a bonus. What makes you think the value of the house you sold has dropped? Simple 3 others in the row have sold for a lot less and 2 was a little larger, but saying that I never said the one I sold had dropped I said house price drop as in general from observation of ones coming on the market. Link to comment Share on other sites More sharing options...
bluemonday Posted September 15, 2008 Share Posted September 15, 2008 keep your eggs in one stable basket and have the meagre depositors protection scheme to fall back on I posted somewhere on this a few months ago, as I remember someone raised the issue in Tynwald. Here you're covered for 75% up to 15K Across it's 100% up to 35K and they were talking about putting that up to 50K. Far as I recall there is a difference how it's funded here/across which is why the scheme is not as good here. Link to comment Share on other sites More sharing options...
Mr Woo Posted September 15, 2008 Share Posted September 15, 2008 keep your eggs in one stable basket and have the meagre depositors protection scheme to fall back on I posted somewhere on this a few months ago, as I remember someone raised the issue in Tynwald. Here you're covered for 75% up to 15K Across it's 100% up to 35K and they were talking about putting that up to 50K. Far as I recall there is a difference how it's funded here/across which is why the scheme is not as good here. I'm sure someone will corrrect me if I'm wrong but I thought that here it's 75 per cent of the first 20,000 pounds sterling per individual (Compensation of Depositors Regulation 1991). Link to comment Share on other sites More sharing options...
bluemonday Posted September 15, 2008 Share Posted September 15, 2008 Feel free to argue Currently the UK scheme, which is government-backed, offers up to £35,000 compensation per person, per institution. In the Island, £15,000 is the upper ceiling of compensation. http://www.iomtoday.co.im/isle-of-man-busi...tion.4228105.jp Link to comment Share on other sites More sharing options...
pongo Posted September 15, 2008 Share Posted September 15, 2008 Feel free to argue Aren't you both saying the same number effectively. ie 75% of 20K ? Or maybe I misunderstood. Link to comment Share on other sites More sharing options...
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