Why Did Lloyds TSB Buy HBOS?
The rather unusual news from the UK is that the British government has grabbed control of Lloyds TSB PLC as a part of guaranteeing loans worth £260 billion.
According to a statement from Lloyds TSB, “About 83% of the insured assets were acquired when the bank bought HBOS.” The details, as reported by Bloomberg, can be [...]
Too Much Borrowed Money – Puerto Rico Is ‘Bust’
It had to happen. Iceland couldn’t be the only government to ‘go under’ during this financial crisis.
This is one of the problems with a global recession, it is very hard to guess what is actually at risk. It could be everything, or it could be nothing.
Either way, the impact of too much borrowed money is [...]
The American Banking Sector Is On Life Support
The CNN story here
shows just what a mess the banking sector is in. The sad thing is that the list of 250 banks ‘in trouble’ is only in the USA. When I clicked on the link, I was rather hoping that it was a global list. Perhaps it was less hope and more blind optimism. [...]
A Bad Day For UK Shareholders
Today was a fairly bad day to be a shareholder in the United Kingdom. The idea of property rights – something that is vital in a modern democracy – seems to have been damaged somewhat.
Property rights are a central tenet of a modern economy. Without legal rights of ownership with a solid enforcement system, the [...]
Europe Really Is In Recession
Despite the credit crunch or crisis – depending upon your lexicon – politicians around the world have been clinging to anything positive and trying to avoid the word “recession” in any form.
Those brave souls that do use the word recession are playing it down in the hope that it will only last a few weeks. [...]
Enron, Gordon Brown And Borrowing
A recent reading of the December Esquire magazine grabbed my attention. The main investigative article – by Stephen Armstrong – in the edition looked at the role of the “NatWest 3” and Enron as it may – or may not – relate to the current market volatility. The article starts with the idea that the [...]