credit crunch

[ramesh046]

Why is that only US and Uk banks are in trouble.? Why not other european banks? Or have I missed something

[dasherman]

1) British and US banks are the only ones stupid enough to lend to people who can't pay the money back.

2) Home ownership isn't the national pastime of many other Euro countries - lots of people rent.

3) Banks in France only let people buy things when they have the money - their credit cards are effectively only debit cards and French banks often only lend upto a third of a persons salary.In UK we have/had 'self certs',where potentially you can borrow stupid multiples of salary.

[Ethel]

Read the news:

http://www.iht.com/articles/2008/08/28/busines s/28fbank.php

French banks have lost about $28.5 billion so far this year in the global financial crisis
http://www.businessweek.com/ap/financialnews/D 93BOPVG1.htm

German State-Owned Banks on Verge of Collapse
http://www.spiegel.de/international/business/0 ,1518,536635,00.html

Belgian banking authorities held talks with Fortis NV officials Saturday to try to restore confidence in the embattled bank after its shares slumped amid fears of insolvency.

http://www.iht.com/articles/ap/2008/09/27/busi ness/EU-Belgium-Fortis.php

Australia hit as crisis grows
http://business.theage.com.au/business/austral ia-hit-as-crisis-grows-20080916-4hy6.html

[ramesh046]

Now I know! Thanks both of you

Ethel- who are YOU? You have answers for everything!