HSBC Feeling the Pinch
HSBC is the third largest bank in the world, and they've miscalculated the effect of rising interest rates on their sub-par loan customers. According to this article at Marketwatch, they have had to revise their bad-debt charges upward by 20% from earlier provisions, thereby sending "a chill through the financial world."
[Thanks to dms-lawyer.com for the image.]
Come down off your cloud, people. I cannot understand how the financial world has not seen this coming.
How can huge companies like HSBC not see that this global liquidity must squeeze out of existence either through speculative blowing-off-of-steam at the top of the kettle, or through leaks in the bottom with either foreclosures on simple and mostly honest people who have been hoodwinked into selling themselves into mortgage slavery, or with a reduction in the dollar's purchasing power, otherwise known as a devaluation of our currency, which steals our wages right out of our pockets before we've even had a chance to cash the check?
Good grief.
[Thanks to dms-lawyer.com for the image.]
Come down off your cloud, people. I cannot understand how the financial world has not seen this coming.
How can huge companies like HSBC not see that this global liquidity must squeeze out of existence either through speculative blowing-off-of-steam at the top of the kettle, or through leaks in the bottom with either foreclosures on simple and mostly honest people who have been hoodwinked into selling themselves into mortgage slavery, or with a reduction in the dollar's purchasing power, otherwise known as a devaluation of our currency, which steals our wages right out of our pockets before we've even had a chance to cash the check?
Good grief.
posted by Katy Delay at 8:25 PM
1 Comments:
My take on the HSBC (and those that will assuredly follow) and foreclosures of subprime borrowers is that the lenders created such a volume lending to the middle class that they were foreced to keep it up by lending to the innocent and naive of less than acceptable creditworthiness. Of course government-created liquidity encouraged big lenders to jump in, indeed, to feed money to the public. If you look at recent bonuses on Wall Street, you might wonder if the rats are leaving a sinking ship, taking everything of value with them.
Seems to me the lesson was learned from the mafia: Find a vice, a need, an addiction and sucker (or strong-arm) people into a 'deal they can't refuse' and then bleed them as long as possible. I find it difficult to distinguish the ethics of many of our business leaders from that of organized crime.
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