**Fortis Bank Predicts U.S. Financial Market Meltdown Within Weeks**

DriftingByTheStormDriftingByTheStorm Posts: 8,684
edited August 2008 in A Moving Train
Fortis Bank Predicts U.S. Financial Market Meltdown Within Weeks

De Telegraaf | June 30, 2008

BRUSSELS/AMSTERDAM - Fortis expects a complete collapse of the US financial markets within a few days to weeks. That explains, according to Fortis, the series of interventions of last Thursday to retrieve € 8 billion. “We have been saved just in time. The situation in the US is much worse than we thought”, says Fortis chairman Maurice Lippens. Fortis expects bankruptcies amongst 6000 American banks which have a small coverage currently. But also Citigroup, General Motors, there is starting a complete meltdown in the US”

This fits in the picture, with the other press releases last week, like the short advise of Goldman Sachs and some other of the same messages last week.
If I was to smile and I held out my hand
If I opened it now would you not understand?
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Comments

  • blackredyellowblackredyellow Posts: 5,889
    Thanks Chicken Little.
    My whole life
    was like a picture
    of a sunny day
    “We can complain because rose bushes have thorns, or rejoice because thorn bushes have roses.”
    ― Abraham Lincoln
  • Thanks Chicken Little.

    what do you fucking want from me?

    i mean,
    even when it is in a legitimate news source,
    you people give me shit.

    sometimes bad things happen.
    you may have to deal with it some day.

    god forbid, i try and give someone some warning.

    guess it is unwanted.

    :(
    If I was to smile and I held out my hand
    If I opened it now would you not understand?
  • spiral outspiral out Posts: 1,052
    Cheers drifting.

    This is an interesting article.

    http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/06/27/cnbarclays127.xml

    Barclays warns of a financial storm as Federal Reserve's credibility crumbles.

    Barclays Capital has advised clients to batten down the hatches for a worldwide financial storm, warning that the US Federal Reserve has allowed the inflation genie out of the bottle and let its credibility fall "below zero".

    "We're in a nasty environment," said Tim Bond, the bank's chief equity strategist. "There is an inflation shock underway. This is going to be very negative for financial assets. We are going into tortoise mood and are retreating into our shell. Investors will do well if they can preserve their wealth."

    Barclays Capital said in its closely-watched Global Outlook that US headline inflation would hit 5.5pc by August and the Fed will have to raise interest rates six times by the end of next year to prevent a wage-spiral. If it hesitates, the bond markets will take matters into their own hands. "This is the first test for central banks in 30 years and they have fluffed it. They have zero credibility, and the Fed is negative if that's possible. It has lost all credibility," said Mr Bond.
    Keep on rockin in the free world!!!!

    The economy has polarized to the point where the wealthiest 10% now own 85% of the nation’s wealth. Never before have the bottom 90% been so highly indebted, so dependent on the wealthy.
  • we need a reset button.
  • what do you fucking want from me?

    i mean,
    even when it is in a legitimate news source,
    you people give me shit.

    sometimes bad things happen.
    you may have to deal with it some day.

    god forbid, i try and give someone some warning.

    guess it is unwanted.

    :(


    Change the world to perfect already , and only post happy stories.

    You can do that can't you?
    Progress is not made by everyone joining some new fad,
    and reveling in it's loyalty. It's made by forming coalitions
    over specific principles, goals, and policies.

    http://i36.tinypic.com/66j31x.jpg

    (\__/)
    ( o.O)
    (")_(")
  • KannKann Posts: 1,146
    what do you fucking want from me?

    i mean,
    even when it is in a legitimate news source,
    you people give me shit.

    sometimes bad things happen.
    you may have to deal with it some day.

    god forbid, i try and give someone some warning.

    guess it is unwanted.

    :(
    What did you expect. People who are used to see america as the n°1 economic superpower, and this for most (if not all) of their liftetimes have a total (and blind) confidance in this economic system. So if you come by with such an enormous thing as a market meltdown, well don't expect them to change so easily their point of view.
  • Well good thing there is an election in November. Just think if this happened right after Bush got reelected. ::rolls eyes::
    whoever wins is inheriting a shit storm, that's for sure. maybe the republicans really don't want to win. let the democrat come in and deal with the mess and then blame them for it on the next election cycle.
    "An investment in knowledge pays the best interest."

    "Beer is living proof that God loves us and wants us to be happy."

    - Ben Franklin
  • yokeyoke Posts: 1,440
    I think that we are going to start hearing more and more of this in the coming weeks. Right now all I hear on the news is that people are staying close to home this weekend because of gas prices.
    Thats a lovely accent you have. New Jersey?

    www.seanbrady.net
  • what does this all mean for the average shmuck like me, who doesn't have anything invested, other than a 403b? does big banks collapsing affect fixed rate mortgages? i'm not much if a financial expert to say the least. but i am getting worried.
    "An investment in knowledge pays the best interest."

    "Beer is living proof that God loves us and wants us to be happy."

    - Ben Franklin
  • yokeyoke Posts: 1,440
    what does this all mean for the average shmuck like me, who doesn't have anything invested, other than a 403b? does big banks collapsing affect fixed rate mortgages? i'm not much if a financial expert to say the least. but i am getting worried.


    I was thinking the same thing myself. Yeah I think its def a worriesome time. What will the average person do?
    Thats a lovely accent you have. New Jersey?

    www.seanbrady.net
  • yoke wrote:
    I was thinking the same thing myself. Yeah I think its def a worriesome time. What will the average person do?
    during the great depression there was about 25% unemployment. I happen to work at a school and those types of jobs tend to be safer but nothing is certain. but if you work for the govt. or some such basic societal necessity, then you might be able to make it through. but it seems logical that people in retail sales, people who are nail technicians, people who make their living on the financial markets, stuff like that, are going to seee major unemployment.

    someone who knows about this stuff should correct me if i'm wrong. I'm just thinking. i'm just worried that the 5.5% fixed rate I have on my home mortgage will shoot up if the bank goes under and my mortgage gets taken over by another bank.
    "An investment in knowledge pays the best interest."

    "Beer is living proof that God loves us and wants us to be happy."

    - Ben Franklin
  • LikeAnOceanLikeAnOcean Posts: 7,718
    someone who knows about this stuff should correct me if i'm wrong. I'm just thinking. i'm just worried that the 5.5% fixed rate I have on my home mortgage will shoot up if the bank goes under and my mortgage gets taken over by another bank.
    Would that be good for someone like me who has their money invested into a Money Market account? When I put my money in last year I was earning 4.25% interest.. as the fed kept lowering interest rates on housing, my earnings dropped to only about 2% now. :(
  • yokeyoke Posts: 1,440
    during the great depression there was about 25% unemployment. I happen to work at a school and those types of jobs tend to be safer but nothing is certain. but if you work for the govt. or some such basic societal necessity, then you might be able to make it through. but it seems logical that people in retail sales, people who are nail technicians, people who make their living on the financial markets, stuff like that, are going to seee major unemployment.
    .


    Thats what I was thinking as well. I am a garbage man and that is one of those jobs that has to be done regardless I think. I actually got out of Telecom(I was an Engineer) because I was sick of the constent bankrupties and takeovers I went through for 12 years. I actually have the chance to get back into now but I am not sure if I want to. I mean my wife is a real estate agent and she does okay(not as good as a few years ago). I mean is this the time for me to switch jobs and maybe end up getting laid off? I don't know if its worth the risk at this point. The job I have is stable and its never going away.
    Thats a lovely accent you have. New Jersey?

    www.seanbrady.net
  • blackredyellowblackredyellow Posts: 5,889
    what do you fucking want from me?

    i mean,
    even when it is in a legitimate news source,
    you people give me shit.

    sometimes bad things happen.
    you may have to deal with it some day.

    god forbid, i try and give someone some warning.

    guess it is unwanted.

    :(

    Post what you want, but my problem is every week you seem to post about an impending meltdown, crash, implosion, etc., of the banking system or the stock market, but we never see it actually happening.
    My whole life
    was like a picture
    of a sunny day
    “We can complain because rose bushes have thorns, or rejoice because thorn bushes have roses.”
    ― Abraham Lincoln
  • yoke wrote:
    The job I have is stable and its never going away.
    that's something to consider. many people don't have that kind of job security. it would take a couple of years for everytihng to bottom out and for the economy to reset itself. I'm certainly no expert but i have a friend who is a financial planner and he thinks it won't be as bad as the crash of 29 and that the result will be some type of modern "New deal" where we will end up with a goverment that is closer to the more socialist governments in europe. More taxation and more govt services. Who knows.

    i know one thing, the green economy will be what brigns us out of it. we have to bring manufacturing jobs back to the US. we need to produce the materials ans services that will take us into a greener world. solar panels. fule cell technology, smart buildings, expanding mass transit and transitioning it to zero emissions, rebuildign the country's crumbling infrastructure with an eye toward efficiency. all of this stuff wil put people back to work. We could lead the way on this stuff but we need a government that is serious about it, not big oil cronies.
    "An investment in knowledge pays the best interest."

    "Beer is living proof that God loves us and wants us to be happy."

    - Ben Franklin
  • whoever wins is inheriting a shit storm, that's for sure. maybe the republicans really don't want to win. let the democrat come in and deal with the mess and then blame them for it on the next election cycle.
    thats the plan.
  • LeilaMoonTurtleLeilaMoonTurtle Posts: 1,418
    advise?


    OK yes we know things are bad


    I just want links to your news
  • LeilaMoonTurtleLeilaMoonTurtle Posts: 1,418
    haha

    really?


    I thought when gas prices are super high and the US dollar loses value left and right that meant slow meltdown


    Post what you want, but my problem is every week you seem to post about an impending meltdown, crash, implosion, etc., of the banking system or the stock market, but we never see it actually happening.
  • LizardLizard So Cal Posts: 12,091
    yoke wrote:
    I was thinking the same thing myself. Yeah I think its def a worriesome time. What will the average person do?

    My concern too. My husband is a teacher in CA, a state whose budget sucks big time, and have 1 kid in college and another will be there in a year. Very Scary stuff.
    So I'll just lie down and wait for the dream
    Where I'm not ugly and you're lookin' at me
  • mammasanmammasan Posts: 5,656
    yoke wrote:
    Thats what I was thinking as well. I am a garbage man and that is one of those jobs that has to be done regardless I think. I actually got out of Telecom(I was an Engineer) because I was sick of the constent bankrupties and takeovers I went through for 12 years. I actually have the chance to get back into now but I am not sure if I want to. I mean my wife is a real estate agent and she does okay(not as good as a few years ago). I mean is this the time for me to switch jobs and maybe end up getting laid off? I don't know if its worth the risk at this point. The job I have is stable and its never going away.

    I'm in the opposite situation as you. I work in advertising, most of our clients are financial firms, and I'm looking to leave. I'm still going to stay in advertising but I'm looking to get back into pharmaceutical advertising. It is one of those industries where economic downturns do not affect as much as other areas of advertising. I'm scared shitless of what might happen. I have a pretty decent amount of money tied up in stocks and mutual funds. I have taken a bit of a beating lately but I'm still up from when I first got into the market. I ponder daily wether I should get my money out now or ride this shit storm out.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • I don't know, but my wife's dad owns land in Colorado. my last resort would be to go out there and literally live off the land. they have cows and chickens and a big garden. if I lose my job, i'll go there and ride it out.
    "An investment in knowledge pays the best interest."

    "Beer is living proof that God loves us and wants us to be happy."

    - Ben Franklin
  • mammasan wrote:
    I'm in the opposite situation as you. I work in advertising, most of our clients are financial firms, and I'm looking to leave. I'm still going to stay in advertising but I'm looking to get back into pharmaceutical advertising. It is one of those industries where economic downturns do not affect as much as other areas of advertising. I'm scared shitless of what might happen. I have a pretty decent amount of money tied up in stocks and mutual funds. I have taken a bit of a beating lately but I'm still up from when I first got into the market. I ponder daily wether I should get my money out now or ride this shit storm out.
    I can't really control what my 403b invests in, it's either high yield or low yield. but if you can manage your money, you should be buying gold. gold will retain it's value and actually go up while the dollar is in a free fall. If i had any expendable income, i would be buying gold and silver...
    "An investment in knowledge pays the best interest."

    "Beer is living proof that God loves us and wants us to be happy."

    - Ben Franklin
  • mammasanmammasan Posts: 5,656
    I can't really control what my 403b invests in, it's either high yield or low yield. but if you can manage your money, you should be buying gold. gold will retain it's value and actually go up while the dollar is in a free fall. If i had any expendable income, i would be buying gold and silver...

    Well expendable income is something I do not have loads of right now. I"m trying to put as much as possible away in case the agency I work for does have to start laying off. I have been on a few interviews in the past two weeks with pharma firms so hopefully I can land a job with one of them and use some of that saving to start purchasing gold as an investment. That still doesn't ease my concern over my stocks. I currently have about 50K tied up in the market and my good friend, who is also my broker, is telling me to sit tight but my gut intuition is to sell and buy gold.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • I'll tell you one thing. the super rich will be fine. the poor and destitute are way ahead of the curve when the shit hits the fan. when you've got nothing, you've got nothing to lose. but they know how to live with next to nothing, they've been doing it for years. It's us that are facing a major culture shock and lifestyle adjustment.
    "An investment in knowledge pays the best interest."

    "Beer is living proof that God loves us and wants us to be happy."

    - Ben Franklin
  • LikeAnOceanLikeAnOcean Posts: 7,718
    I'll tell you one thing. the super rich will be fine. the poor and destitute are way ahead of the curve when the shit hits the fan. when you've got nothing, you've got nothing to lose. but they know how to live with next to nothing, they've been doing it for years. It's us that are facing a major culture shock and lifestyle adjustment.
    I don't think so. The super rich are rich because they've learned to exploit cheap labor. If the don't have the support of the poor to make their businesses run efficiently, they are fucked. What are they going to do with all their money when it won't buy them anything.
  • I don't think so. The super rich are rich because they've learned to exploit cheap labor. If the don't have the support of the poor to make their businesses run efficiently, they are fucked. What are they going to do with all their money when it won't buy them anything.
    i have to restate that. considerign how global the economy is now, you're probably right. but I would bet they can still take their money, invest in in gold, silver, oil, things that will continue to do well, foreign markets to a point, although a collapse of our economy will affect them as well. basically i think they can just shift their investments into things not tied to the dollar. but I admit i'm no financial expert.
    "An investment in knowledge pays the best interest."

    "Beer is living proof that God loves us and wants us to be happy."

    - Ben Franklin
  • FYI, to underscore this.
    Fortis is the 20th largest business in the world, by revenue, it's not some bullshit pissant bank.

    Translation: they would be in a position to know.

    FYI 2: The DOW dropped 166 points today. S&P dropped 23.

    New lows.

    More to come.
    If I was to smile and I held out my hand
    If I opened it now would you not understand?
  • unsungunsung I stopped by on March 7 2024. First time in many years, had to update payment info. Hope all is well. Politicians suck. Bye. Posts: 9,487
    I firmly believe that if you shop at places like Wal-Mart and buy Made in China/Mexico to save a couple of bucks over buying Made in USA you are directly to blame for the poor economy.

    Stop shopping at Wal-Mart and have some pride in your country and yourself.
  • bingerbinger Posts: 179
    http://www.fortis.com

    Not sure if this has anything to do with the post. !st page of a PDF file

    Press release
    Brussels / Utrecht, 26 June 2008
    THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR
    DISTRIBUTION DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED
    STATES, CANADA, AUSTRALIA OR JAPAN.
    Fortis accelerates the execution of its solvency plan
    Equity raising of EUR 1.5 billion launched today; proposal for full-year dividend paid
    in shares based on full-year profit and no interim dividend
    Fortis announces today its intention to accelerate its solvency plan. Fortis confirms that its
    current solvency is strong and that the commercial momentum of its businesses remains
    resilient. The decision to accelerate the plan is based on the expected outcome in the coming
    weeks of the imposed sale of some of the Dutch commercial banking activities under the
    European Commission (EC) remedies ruling, the planned acquisition of the remaining 51%
    stake in the Dutch insurance joint venture with Delta Lloyd, and anticipates a continued
    challenging market environment as well as taking a prudent stance on required capital in the
    current environment.
    To achieve this acceleration, the Fortis Board of Directors has decided to take additional
    measures, some of which will have an immediate impact. These measures include:
    • an equity raising of approximately EUR 1.5 billion by means of an accelerated
    bookbuilding offering, starting today. This increase is well within the mandate given by
    shareholders to the Board to issue new shares
    • the decision not to pay an interim 2008 dividend. This will preserve solvency as the
    interim dividend was expected to impact second quarter solvency by EUR 1.3 billion. A
    proposal to pay the full-year 2008 dividend in shares will be made to the Annual General
    Meetings of Shareholders in March 2009.
    Current exceptional circumstances necessitate these exceptional measures. The Board of
    Directors of Fortis has decided that under the current circumstances it is more prudent to
    strengthen the capital base and not pay an interim dividend. Fortis intends to resume its
    practice of paying dividend in cash, probably as early as the interim 2009 dividend.
    In addition, the updated solvency plan now includes:
    • a capital relief programme and a sale and lease-back transaction of real estate, for around
    EUR 1.5 billion
    • the issuance of non-dilutive capital instruments up to EUR 2 billion
    • additional disposals of mature non-core assets, which are expected to lead to a total
    solvency uplift of around EUR 2 billion
    The updated solvency plan is expected to result in more than EUR 8 billion of additional
    solvency in total in the short to medium term. The capital raising of approximately EUR 1.5
    billion will broadly offset the future impact on solvency of the EC remedies and the intended
    acquisition of the Dutch insurance joint venture. These measures will increase the core Tier 1
    ratio of Fortis Bank, which at the end of the first quarter stood at 8.5%, and will –
    considering full consolidation of the acquired ABN AMRO assets – enable Fortis to keep the
    core Tier 1 ratio well above 6% by year-end 2009 (under Basel I).
    I want to point out that people who seem to have no power, whether working people, people of color, or women -- once they organize and protest and create movements -- have a voice no government can suppress. Howard Zinn
  • mammasanmammasan Posts: 5,656
    unsung wrote:
    I firmly believe that if you shop at places like Wal-Mart and buy Made in China/Mexico to save a couple of bucks over buying Made in USA you are directly to blame for the poor economy.

    Stop shopping at Wal-Mart and have some pride in your country and yourself.


    Point me to a store that sells any products made in the US. In fact point me to any product, besides cars, motorcycles, or other motorized vehicles, that are made in the US.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
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