With British and American banks and financial institutions falling like dominoes, I have yet to hear of a European (and for that matter far east) bank going to the wall. Or am I missing something?
If this is the case why do you think this is so? Should we run our economy more like european countries run theres if this creates a more stable society?
What do you think?

I have yet to hear of a European (and for that matter far east) bank going to the wall.


Crunch. (http://news.bbc.co.uk/1/hi/business/7641132.stm)


Kinda puts a crimp in your argument, I'm afraid. :)

It has been pointed out that in France at least (and I thinkt his holds for some other European countries) people are not so desperately hooked on the idea that you MUST own your own home, you MUST get on the first rung of the ladder of house ownership. A higher proportion of the population lives in rented accommodation, in apartment blocks and the like, so there is not the call for unrestrained and unsupported mortgage lending.

I believe that French credit cards are more like debit cards, you can't run up a debt you can't pay because if you try to buy beyond a certain amount without bank authorisation the transaction is blocked.

Some other European countries are more rural, and they don't have the system of money chasing money in stock exchanges to the same extent, and their money is supported by real production, not by mere speculation. We should all remember that money in itself has no intrinsic value.

However, at least we aren't in the same position as Zimbabwe with it's rampant inflation as a result of a collapsed economy.

None of the stock markets in Europe are as big as the UK's. European countries are therefore less susceptible to the big financial swings we see as a result of the volatility of the stock market (and of the dependency of business on this market) in the UK.

None of the stock markets in Europe are as big as the UK's. European countries are therefore less susceptible to the big financial swings we see as a result of the volatility of the stock market (and of the dependency of business on this market) in the UK.

Quite--just my point above.

Another factor is that the UK is the largest global financial centre in Europe and therefore is more susceptible to volatility in the global financial system than elsewhere in Europe. Moreover, a smaller proportion of our trade is done with other EU members than tends to be the case in continental Europe, so again we are more susceptible to volatility in the global trading system.

Crunch. (http://news.bbc.co.uk/1/hi/business/7641132.stm)


Kinda puts a crimp in your argument, I'm afraid. :)

So, one european (pop. 350 million) bank in trouble as opposed to four in Britain (pop. 60 million).
Even then it's still made a profit;
'Last month, Fortis announced its profits for the first six months had fallen by 41% to 1.6bn euros (£1.2bn) against a year ago.'

To me it simply shows the weakness of having an economy that relies almost exclusively on the finance and service sectors with the only vibrant manufacturing sector being the building industry which relies so much on the financial institutions lending money.
The result of which we are now seeing.

Crunch. (http://news.bbc.co.uk/1/hi/business/7641132.stm)

Kinda puts a crimp in your argument, I'm afraid. :)

Kind of as an aside that article reminded me that British Energy is being taken over by EDF, the French State energy supplier.... effectively France is nationalising our nuclear power stations :hihi:

So, one european (pop. 350 million) bank in trouble....that we know of... as opposed to four in Britain (pop. 60 million).

....that we know of...

I'm sure there will be more as time goes by but the present weakness of the financial markets in this country could be rich pickings for european banks that survive the downturn meaning that our banking industry could end up like our car industry.......non existent!