The Dow continued to decline at Monday’s opening (November 5, 2007) and the trend in London is to get rid of investments in banks. It is 9 AM in the U.S. and 3 PM in London as the trend continues. We are on central standard time, and we learned that Alliance & Leicester led the sector’s decliners, followed by HBOS, Northern Rock, Royal Bank of Scotland, and Barclays. US-based Citigroup CEO Chuck Prince resigned which spooked the market.
As banks feel the pinch one must ask if their credit card markets will also fail. Banks threaten to raise interest rates ast the first sign of troubles or late payments. If the banks also hold troubled mortgages will the mortgages prompt higher interest rates for the customer, or will higher interest rates cause the customer to walk away from the mortgage? Perhaps they will walk away from both? Yes, banks do indeed have a problem.
The decline in London’s benchmark large-cap index today came after it fell 1.96% last week, in spite of closing twice above the 6,700 level, as worse-than-expected write downs at Merrill Lynch and Citigroup in the US hit investor confidence. On Friday the dollar touched a new lows against the euro, and crude oil is nearing $100 (USD) per barrel. Will investors dump banks shares in the United States? Perhaps they should if predictions of a pending credit card crisis prove to be true.
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[...] unknown wrote an interesting post today onHere’s a quick excerptThe Dow continued to decline at Monday’s opening (November 5, 2007) and the trend in London is to get rid of investments in banks. It is 9 AM in the US and 3 PM in London as the trend… — for brevity this is a summary only. … [...]
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[...] Nancy placed an observative post today on Investors dump bank shares, credit card crisis to follow.Here’s a quick excerpt:The Dow continued to decline at Monday’s opening (November 5, 2007) and the trend in London is to get rid of investments in banks. It is 9 AM in the US and 3 PM in London as the trend… — for brevity this is a summary only. … [...]
[...] Nancy placed an observative post today on Investors dump bank shares, credit card crisis to follow.Here’s a quick excerpt:The Dow continued to decline at Monday’s opening (November 5, 2007) and the trend in London is to get rid of investments in banks. It is 9 AM in the US and 3 PM in London as the trend… — for brevity this is a summary only. … [...]
[...] Nancy placed an interesting blog post on Investors dump bank shares, credit card crisis to follow.Here’s a brief overview:The Dow continued to decline at Monday’s opening (November 5, 2007) and the trend in London is to get rid of investments in banks. It is 9 AM in the US and 3 PM in London as the trend… — for brevity this is a summary only. … [...]
[...] Read the rest of this great post here [...]