The Mudcat Café TM
Thread #114937   Message #2460967
Posted By: Mr Red
09-Oct-08 - 08:07 AM
Thread Name: BS: So it has come to this - Iceland
Subject: RE: BS: So it has come to this - Iceland
I think there will be a lot of caution in investing with intstitutions that don't have answer to a government YOU can elect.

It was always part of the risk, and hind-sight is confirming it.

I don't have large amounts to invest, what I do have is in a building society, and not connected with ex-building societies (though they did try pushing such products, they no longer counter my arguements about the market being overheated).

For those not familiar with the British Building Soc system, they are mutual societies (we are members) with regulatories constraints on how they use your money (mostly mortgages with individuals).

The British banks that are causing all the problems here are the ex-building societies that demutualised, and got clever. Too clever.

Reagan and Thatcher can be seen now as the start and prime movers in the slippery slope. Before that, caution was based on the experience of those that saw the Great Depression first hand. Like my mother. Her ethos was: don't borrow money and if you have to (eg housing) pay it back before term. It makes for a slower economy, but an even slower, shallower downturn. We may very well see less global trade, because of the money markets' nervousness and the price of fuel.