THE GLOBAL FINANCIAL CRISIS......DID WE LEARN OUR LESSONS? HAS THERE BEEN CHANGES? WHAT DO YOU THINK?!

rockits

rockits

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There are so many badly financially managed projects more than ever that seem to run over budget and beyond deadlines. It seems almost accepted and acceptable somehow.

The Carrilion debacle is truly mind bending. How we allow this criminality to happen is beyond me. Not only do we not regulate it to prevent it happen. We know about it and do nothing about it. Then we let is continue for a long and damaging time. Then we never learn our lessons and it keeps happening and will happen again.

It is not morally right what is going on and company bosses and management know this and choose not to care. It is wrong and this attitude and practice has to stop. The most vulnerable often are the biggest loser's. The Carrilion situation truly sickens me. The scale is shocking.
 
JonW

JonW

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I seem to have a different view on this to many of you.

I would say that a lot of lessons were learnt through the financial crisis, and the swarm of regulation that hit the banks in the years that followed. As a result, at a systemic level, I think the risks of a global financial crisis, and another Lehman’s, Barings, Fannie mae or Freddy mac collapse is much smaller than it was... I also think (know) that the banks are much more tightly controlled now.

That doesn’t mean a bunch of smart arses in banks haven’t dreamt up new ways of making money (cos they have). It also is definitely true that the level of personal debt and overspending has increased. However, this won’t bring down the system, even if it may cause some pain for those caught out when the next economic downturn comes...
 
safrane

safrane

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Without consumer debt our and most of the western countries economy's would slide into depression within six months.

Maybe we should write off consumer debt and use the tens of millions paid daily to cover the interest to improve the world.

Not likely I admit.
 
Wattie

Wattie

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safrane said:
Without consumer debt our and most of the western countries economy's would slide into depression within six months.

Maybe we should write off consumer debt and use the tens of millions paid daily to cover the interest to improve the world.

Not likely I admit.
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Good points and that’s the problem, economies based on debt at some point will collapse.....that’s why central banks cannot increase interest rates....it puts pressures on those with no reserves.
Writing off debts means fiddling books and printing more money.......which is what we have!
 
Wattie

Wattie

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Zerohedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
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The yield curve is basically just a line that plots the yield of US treasury bonds (NASDAQ:TLT) with different maturity dates. The curve lets you easily compare rates on short-term bonds versus long-term bonds. When long-term bonds are yielding more than short-term bonds, the line rises from left to right. And when this is the case, it's called a normal yield curve. This is signal that the economy and market are doing okay.

When you start to see the yield curve flatten or even invert, meaning short-term rates become equal to or higher than long-term rates, and the line either becomes flat or sloped lower from left to right, then that usually signals trouble ahead in terms of a recession and lower market prices.

Two things happen for the yield curve to become like this. First, the Fed starts raising short-term rates. Based on its mandates, the Fed may see the economy overheating and decide to raise rates to slow it down. Higher rates hurt economic expansions.

Second, investor expectations for the future become negative. And because of that, they buy up long-term bonds, lowering their yield. Those two together give you a flat or inverted yield curve, where short-term bonds yield the same or even more than long-term bonds. And like this signals trouble ahead.
 
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Wattie

Wattie

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I suggest u all start paying attention.

Germany sold 2.4 BILLION € of 10 yr bonds to investors who were prepared to accept a Negative interest of -.05%rate!!
Ie borrowers are paying Germany for the right to lend to it!
Gents, this is so wrong,
 
daverichardson

daverichardson

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I am old
I despair
I try to keep myself and children financially well but we are challenged by institutional greed at every turn
Amigo loans at 1700% approx
Credit Cards at 20% or whatever
A whole new industry has started Checking Your Credit Score. This never existed when I was a lad
I did not know what it was until recently.
Vast swathes of the population live on credit card debt to the maximum is that sustainable?
I do not have complete answers but I know what we are doing now is not correct ethically, morally or financially
 
CatmanV2

CatmanV2

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daverichardson said:
interesting
How long ago? I had not heard it before
Told you I was old!
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Experian was acquired by Great Universal Stores back in '68, which makes it over 50 years old. GUS itself is more like 125 years old, and credit rating was somewhat inherent in their business model (which is why they bought Experian, if you see what I mean)

C
 
CatmanV2

CatmanV2

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daverichardson said:
Ah so when did it become the animal I see today?
Genuinley interested
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Sort of depends on what you mean by 'the animal you see today'

Paid for, consumer targeting credit score availability has probably been around for about 10-15 years as something that end users can go and buy (i.e check your credit score on Clearscore.com), and was really driven by increased internet availability (for ease of delivery) and the sub / near prime credit industry.

Consumers wanted to know what their credit score was (but IMO mostly only when they failed to get a loan), and clever marketing people saw this a value add. The shift now is that it is really market driven 'You should know your credit score, and how you can improve it, because you need credit and you can get cheaper credit with a high score'.

With the advent of the free agencies, things change again, and more add ons are being created.

Lots of the tech is rather neat. Some of it (that I can't really talk about etc etc) is definitely very cool in terms of identification of people. For me, even more interestingly, is that several places are all working on similar tech, but with the same underlying theory apparently independently. I guess when it's time to rail road.... And god knows we need better ways of identifying people than we do now

C
 
daverichardson

daverichardson

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Makes sense thank you
I have never had a loan credit card etc (well mortgage) and never had the need to look at my credit score - if I have one
 
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GeoffCapes

GeoffCapes

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daverichardson said:
Makes sense thank you
I have never had a loan credit card etc (well mortgage) and never had the need to look at my credit score - if I have one
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In that case it's probably rubbish.

The 30 year old who has 4 credit cards each with ten grand on them, a car on HP and a flat that he rents, and struggles to get by on Pot Noodles for the last 3 weeks of the month, probably has a better credit score than you.

Madness!
 
CatmanV2

CatmanV2

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GeoffCapes said:
In that case it's probably rubbish.

The 30 year old who has 4 credit cards each with ten grand on them, a car on HP and a flat that he rents, and struggles to get by on Pot Noodles for the last 3 weeks of the month, probably has a better credit score than you.

Madness!
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As long as he makes the payments and has an income to meet his expenditure, it's possibly true. People rather mis-understand what a credit score actually scores.

C
 
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