GBP vs THB

[STEVE G]

Yes, the pound has gained against the euro since it's plunge in 2008.

[Korkenzieher]

Nice graph. Looking there to see a breakout of sterling north of 1.17 by the third quarter.


LB. On Mortgages, and real-estate:

Original concept is German (Prussia) (http://en.wikipedia.org/wiki/Mortgage_loan)

Deutsche Bank, and its subsidiaries, is one of the largest issuers of sub-prime securitised mortgage debt in the US (Kensington Group was in the UK, but that was because it was heavily involved in Buy-to-Let securitisation). Defaults have caused it to become the largest private property owner in Ohio, one of the rust-belt areas where the sub-prime crisis was seen to be particularly predatory, and particularly damaging. (http://news.bbc.co.uk/2/hi/business/7073131.stm)

For which they find themselves under investigation (http://www.reuters.com/article/idUSTRE63Q17B20100427)

So. Wholly a UK and US phenomenon then? Or more rubbish from someone who can't even google for the facts? Perhaps German Banks are nice cuddly benign beasts, who only wish to do good, and treat the profit motive as a necessary consequence. I don't THINK so somehow.

[Korkenzieher]

Wanted to edit in this link to the above post, but missed the cut-off (even though the edit button still shows?)

http://en.wikipedia.org/wiki/Pfandbrief#History

[loverboy44]

Hello Korkenzieher,
let's get back down to the basics.
The sub prime crisis was not founded by the Deutsche Bank. In fact this bank never needed any state money and came out as one of the most profitable of all.
The crisis came because mortgages were given out too easily.
At the peak they didn't even ask for a regular income.
Following that, house prices were raised artifically high and this bubble came to a burst.
In fact banks especially in the US and the UK financed more than the money they had so they had to find products they could sell to other countries.
In Germany that was mainly a bank called Hypo Real Estate. This bank had to be saved with more than 100 billion Euros.
That said, mortgages in Germany were never given out like that because Germans, like everyone else in the world now (hopefully, who knows) needed a third of a real estate price as a downpayment.
Now for the GBP/EURO rate. Its 1,17 GBP to the Euro now.
It used to be quite stable 1,50 GBP/EUR for many years.
Don't believe any statistics you didn't fake yourself.

[JimmyGreaves]

Looks like the financial markets may have some faith in the new UK coalition government as the pound has started to recover a little against the dollar/euro, currently 1.50 and 1.18. Let's hope it continues and we have plenty of good economic news from the UK!

[Super Joe]

The real estate bubble wasn't produced in Germany. Guess where? Maybe US, Uk? Who produced it? Maybe banks who couldn't get their mouth full enough? In fact banks especially in the US and the UK financed more than the money they had so they had to find products they could sell to other countries.

In Germany that was mainly a bank called Hypo Real Estate. This bank had to be saved with more than 100 billion Euros.

Oh I think there were a few more than Hypo 'who couldn't get their mouth full enough', at least according to the following quotes ...

- "Deutsche Bank writes down $3.1Billion October 2007"
- "Deutsche Chairman acknowledged the country's banks had erred by expanding pell-mell into financial products that later proved risky"
- "In 2008 Deutsche Bank followed up with another $4Billion in writedowns."
- "IKB Deutsche had invested heavily in the U.S. subprime market" - $3.5Billion in writedowns.
- "Bayern LB reported $6.7Billion in writedowns partly due to securities backed by assets including US real estate loans."
- "DZ Bank unveil $2Billion of writedowns on the value of subprime-linked investments."
- "West LB reported losses of $2.5Billion, significantly worse than predicted, largely due to exposure to the U.S. subprime crisis."
- "Dresdner marked down securities incl. debt obligations and US residential mortgage-backed bonds"-$3.5Billion.
- "Hypo Real Estate sprang a nasty surprise on Tuesday, announcing unexpected subprime-linked writedowns"
- "LBBW invested heavily in risky assets and complex financial instruments which lost much of their value during the financial crisis."


"Germany's Faltering Bank Bailout Program:"
"The German government whipped its €480 Billion bank bailout package through parliament in record time, but now the program has run into trouble. The banks are still fighting for survival, the money market isn't functioning properly, and taxpayers' money is being burned."

SJ

[Korkenzieher]

Super Joe,

Comment from me would be superfluous. You about covered it all!

[loverboy44]

I think you never got my point SJ and Korkenzieher.
I never said that Germany wasn't having problems but they can solve it because it is a huge production hub. The Deutsche Bank was simply a bad example you brought up because they are not having trouble.
The thing is: Why does the UK doesn't turn back to production and only believe in their banking system?
Why is the new Audi A1 produced in Belgium and not in Mancester?
We all just have to be very careful with banks and their products!
Many products must be forbidden. Trading shares is ok but options and obligations on shares and country securities should belong to a casino and not to a bank.
It's that far that speculators can stirr how much a bond costs a country.
Just a rumour makes them huge profits.

[Super Joe]

The Deutsche Bank was simply a bad example you brought up because they are not having trouble.

Deutsche Bank is a perfect example, even the bank's chairman has publically said as much. Sure they came out of the crisis in good shape, due to betting against it when they wisely predicted the way the market was going. Fair play to them for that, but they were still knee-deep in the root cause of it, along with US, UK, Swiss, French banks etc.

- "Deutsche Bank was the seventh-ranked underwriter of home-equity securities last year (2006), most of which were backed by subprime or second mortgages."

- "Deutsche Bank boss admits mistakes in financial crisis: "we acknowledge our share of the blame and help ensure that this disaster doesn’t happen again."

- "Deutsche Bank received $11.7 Billion of US taxpayers bailout Dollars from AIG"

- "US Securities Exchange Commission (SEC) to look at Deutsche Bank's role in financial crisis fraud."

- "(Reuters) Deutsche faces a U.S. class-action lawsuit over mortgage-related securities it helped arrange, Germany's biggest lender said in its Q1 report."



Germany had far more banks involved in the subprime mess than any other European country, although not more funds. So let's all take a little blame hey

SJ

[Khundon1975]

I think you never got my point SJ and Korkenzieher.
I never said that Germany wasn't having problems but they can solve it because it is a huge production hub. The Deutsche Bank was simply a bad example you brought up because they are not having trouble.
The thing is: Why does the UK doesn't turn back to production and only believe in their banking system?
Why is the new Audi A1 produced in Belgium and not in Mancester?
We all just have to be very careful with banks and their products!
Many products must be forbidden. Trading shares is ok but options and obligations on shares and country securities should belong to a casino and not to a bank.
It's that far that speculators can stirr how much a bond costs a country.
Just a rumour makes them huge profits.

LB
Maybe what is needed, is to split the banking system into two parts.

One part to deal with daily banking issues that most people like you and I use and the other for the vultures and iffy speculators in derivatives, options etc.

Then when part two goes tits up, the ordinary man in the street does not lose their shirts and we don't get another Northern Rock, Lloyd's etc. where tax payers of many countries, have to bale out the banks.
As it stands at the moment, there is not much that has been put in place to stop this happening again.

Who cares if the investment banking sector gets shafted and these banking sectors go to the wall, along with the tw+ts that did all those risky investment deals. I don't.

[PET]

Khundon

You are right but it is not easy to achieve. However both Conservative and Liberal Democrats, pre-election, mentioned having, shall we call them ''High Street Banks'' and doing the business which perhaps 90% of walk in clients need - just like it was in the 60's & 70's I suspect.

The Merchant and Investment types will need to be heavily regulated so that there is real transparency in future, and those working there actually understand what they are doing and the real risks involved.

Sorry, somewhat off thread.

[redzonerocker]

Then when part two goes tits up, the ordinary man in the street does not lose their shirts and we don't get another Northern Rock, Lloyd's etc. where tax payers of many countries, have to bale out the banks.
As it stands at the moment, there is not much that has been put in place to stop this happening again.

& there isn't much in place to stop awarding themselves inflated bonuses again
despite what happened previously, some actually believe they have earned them for the past years performance

Who cares if the investment banking sector gets shafted and these banking sectors go to the wall, along with the tw+ts that did all those risky investment deals. I don't.

[/quote][/quote]

me neither
they should have let them all go to the wall & seized all their properties & assets, just like they've done to homeowners & small businesses over the past 18 months

it's pretty farcical that the main cause of the recessions are now the ones raking it in

[Khundon1975]

47.78 Baht to the GBP on Forex today.

[loverboy44]

Sorry but what i didn't want was a discussion about banks generally.
Banks are important to the industry. The dicussion was about the method of them!

[redzonerocker]

Sorry but what i didn't want was a discussion about banks generally.
Banks are important to the industry. The dicussion was about the method of them!

actually the original thread was about the GBP v THB

with all the recent turmoil & upheavals, plus a pretty uncertain future, the baht has hardly wavered
would suggest a bit of manipulation is going on somewhere