Posts by frederickbloggs 7 publicly visible posts • joined 5 Apr 2013
12 years ago David Viner from the Met Office predicted that for children born at the time, snow would be a thing that they would never see.
Also, since global warming is mostly occuring in the northern latitudes in the summer and at night, it reduces the temperature gradient between the equator and the north. And it is these temperature differences which drive weather. So global warming will reduce the number of large storms.
Wrong. AIG was not doing casino banking. They are an insurance company. They were simply providing insurance on the senior tranches of CDOs. That is an insurance business. Like providing hurricane protection. In the end, these senior tranches all paid up in full and the government of the US made a load of money on AIG. What happened was the market panicked in 2008 after Lehman blew and all of a sudden people lost confidence in CDOs and their prices fell even though as I have already said, they were actually fine.,
B**ll*ock. How can you sell something twice. The bank took the loan which they owned and then sold it to someone else packaged in a CDO. In the end, the buyer of the CDO ended up with the mortgage and the bank ended up back where it started. Yes, fees were taken - I suppose you work for nothing.
Your facts are time-reversed. Northern Rock's bank run was in 2007 not in 2008.
Also, Lehman was not a bank in the traditional lending sense. It was a pure investment bank without investor deposits. Think of it as a large investment fund which provides financial services (trading, M&A advice, IPOs etc)
That debt which was securitised and sold on to funds, hedge funds, insurance companies would otherwise have stayed in the banking system. The housing bubble was caused by low interest rates and slack lending. Without securitisation it would have been worse as all of those weak mortgages would have remained in the banking system.
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