First it was Ireland, which gave 100 percent guarantees to deposits held in Irish Banks. It was castigated by EEC countries including Germany. Over the weekend the Germans followed suit, quickly followed by the Danes, the Austrians, the Greeks and the Swedes.
Landsbanki has been taken over by the Icelandic Govt. 300,000 people in the U.K. had money with them totalling £4.5 billion. The first £16,000 is guaranteed by the Icelandic Govt. who are skint. the next £34,000 will be met by the Financial authorities in the U.K. Now there is a catch the first £16,000 will be paid in Icelandic Krona which is going down the tubes, 30 percent down today alone. At least if the Indian Banks suffer in the U.K. we shall get precious Rupees to have a wonderful retirement in Goa! By the end of this year the Rupee could well depreciate to 50 Rs per USD. Now you ask me why is the USD getting stronger. We have a whole raft of Banks in Europe including U.K. that have bought packaged U.S. mortgages, they need to borrow USD to fund this - there are no lenders, so they have to sell their home Currency to buy USD to fund their costly adventures. AIG is paying 8 percent plus the FED lending rate - this will surely kill AIG sooner if not later. The whole system stinks - looks like we could be in the doldrums for a long, long time, perhaps 5 - 6 years. No one knows what the bottom line really is. Britains biggest local Bank, R.B.S. lost 39 percent today, Britains biggest mortgage lender H.BoS lost 42 percent today. There is just one bright spot - HSBC which is actually moving higher, so high that it is today's biggest Bank in the World by Capitalisation. Buy to Let property experts, yesterday's stars are in dire straits, some think they can hang in there, two years of pain, even if interest rates come down, the Banks will not lend, on the basis of once bitten twice shy, our experts will surely capitulate and die. Our man from Ohio can have his fill and expand his portfolio, buy up all the property he wants at below USD5,000 a go, yes you really have to believe what he says! after all he knows everything, most intelligent man to ever grace Goanet. Experts say, if Gold can break above 967 and take out 1,000 then we are surely headed to 1500 in a short time. This is a good investment for Indians, shucks, if you get caught out you can pass it on as your daughter's dowry. If you don't have a daughter, make a nice heavy chain and put it around your wife's belly. No wife? then start spending money while you are still around! Citi Bank watch it carefully - Prince Waleed bin Talal bought in the early 1990's at 15 bucks a share - it then went down to 12 bucks. This time if it goes to 12 bucks fill up your stockings; The USA cannot afford to let Citi sink. I am watching and waiting. Take care and be good. -- DEV BOREM KORUM. Gabe Menezes. London.
