That’s some pretty big impairment provisions they’ve got there. Surprised at the size of their loan book. Didn’t realise they were that big.[/quote]
Big turnaround in profits but depends on what their impairment provision was last year really - if they’ve increased it by 40 odd million as is relatively likely then their actual trading performance is fine. No point in them recording a profit this year though - all that means is higher taxes to be paid and their actual performance is completely diluted by the world economy so there’s no favourable bounce to be had from releasing a set of healthy figures. This is the time to take the hit on anything you have lying around.
[quote=“therock67”]Pretty good explanation Danny. Just one question:
“This did not transpire as they thought, as a result banks worldwide are exposed to US trash mortgages and there balance sheet is heavily affected by this”
What sort of default rate and bad debt rate has been experienced in the States? In Ireland it’s certainly more about perceived risks at this stage - presumably they’ve much more experience of bad debts in the States but what sort of level are we talking about? Are the loans that are being repaid grossly insufficient to fund the repayments that have collapsed?[/quote]
This is an interesting article from fool.com.
Absolutely amazing stuff.
Could it happen here?
Can’t beat a good conspiracy theory though. My favourite is that man has never actually been on the moon and that all the footage comes from a film studio - the angles of the shadows in the photo of Neil Armstrong are all wrong apparently and the way the american flag is waving in the wind even though there is no wind on the moon.[/quote]what are you on about? you lads really owe it to yourselves to take a good look at this. It is very, very challenging to the most brilliant of discerning minds, and I believe you’ll find its conclusions compelling
More recently, YouTube was accused of leading high school students who typed “federal reserve” into its search box as they researched a homework assignment down a rabbit hole of “conspiratorial quackery” with increasingly paranoid videos.
