Can this get any worse?
Astonishingly the list of failed banking establishments gets bigger by day, Robert Peston lists them on his blog (see link to the right). We have not seen the like before, Unfortunately I am old enough to have witnessed 3 previous recessions, but this is a different animal.
But hey what's Keith's latest (probably wrong) prediction I hear you say?
Well I am not a short seller, don't have the master of the universe credentials for that, but having seen some strikingly bad balance sheets very recently in the retail sector, I think two banks especially stand out for a BIG FALL.
Kaupthing and Landsbanki, heard of them? Well they own a lot of UK businesses and another investment company Baugur in particular is heavy on retail in the UK. Some of their investments have started to smell a bit recently. You know what I say, "if it smells it's usually off"!
Just how a small country a bit bigger the Isle of Wight, in the North Atlantic has banks that own half of the names on your street is beyond me coz I is thick. But these two banks have so many fingers in pies that they must have problems brewing.
Not that we want to see more failures in the banking sector, do we? But interestingly today the Icelandic central bank /Government rescued Glitnir its THIRD largest bank, which has failed today. Who is next?
PS got a LLP CVA approved today. No creditors turned up, 100% of creditors that voted, voted in favour. More of this when I get time.
PPS used to sell Masters of the Universe toys (made by Mattel), guess they were smarter than some of the numpties who came up with 125% mortgages based upon 6-8 times earnings?