How is all this financial craziness affecting you...

[sidewinder]

Iceland aside, the UK is probably the most exposed of Western European countries

Not correct. Ireland for one is much more exposed.

The UK had a serious recession in 1979-82 (as did the US) and although it was an ordeal, the country pulled through it. Unfortunately, lots of people (both in North America and in Europe) have yet to go through one of these events and it will be a learning experience for them. Most of us will grit our teeth, get on with our jobs and come through it. As we did last time. And the time before that.

Anti-US parties have traditionally never got anywhere in the UK as most people still view the US as our main ally. The lessons of the two World Wars of the 20th Century only reinforce this. The main trading links are in Europe - for sure - but the deep bond with North America remains. Having said that, I suspect that the influence of the US on business/banking over here will diminish considerably.

Edited October 25, 2008 by sidewinder

[Guy Berger]

Iceland aside, the UK is probably the most exposed of Western European countries

Not correct. Ireland for one is much more exposed.

I would guess Switzerland is heavily exposed as are some of the Benelux countries. It's not good to be a small country with huge banks.

Guy

[Free For All]

Of course, I am just an economist, not an investment expert.

But you did stay at a Holiday Inn Express last night..........

[Jazzmoose]

I just got my investment statement a few days ago and damn! Big losses with the bottom nowhere in sight.

It could be ugly... I am inclined to think that unless you absolutely need to tap into your savings in the next decade, it's best just to grit your teeth and sit tight with a well-diversified portfolio. The worst thing to do at this point is to engage in some panic selling. Of course, I am just an economist, not an investment expert.

Guy

Maybe you're not, but it's pretty obvious that the only reason to sell at this point is to lock in your losses.

[Guy Berger]

I just got my investment statement a few days ago and damn! Big losses with the bottom nowhere in sight.

It could be ugly... I am inclined to think that unless you absolutely need to tap into your savings in the next decade, it's best just to grit your teeth and sit tight with a well-diversified portfolio. The worst thing to do at this point is to engage in some panic selling. Of course, I am just an economist, not an investment expert.

Guy

Maybe you're not, but it's pretty obvious that the only reason to sell at this point is to lock in your losses.

On the other hand, if you are feeling frisky, you can go short in Yen and invest the proceeds in a basket of Rand, Lira, and Real and Kiwi Dollar.

Guy

[danasgoodstuff]

My public employee pension fund took a big hit but then I'm 54, have only been a public employee 11 years and have a six yr old child. I'm gonna work til i drop dead or win the lotto, that's the plan now and always has been, always will be.

[The Magnificent Goldberg]

I just got my investment statement a few days ago and damn! Big losses with the bottom nowhere in sight.

It could be ugly... I am inclined to think that unless you absolutely need to tap into your savings in the next decade, it's best just to grit your teeth and sit tight with a well-diversified portfolio. The worst thing to do at this point is to engage in some panic selling. Of course, I am just an economist, not an investment expert.

Guy

Maybe you're not, but it's pretty obvious that the only reason to sell at this point is to lock in your losses.

On the other hand, if you are feeling frisky, you can go short in Yen and invest the proceeds in a basket of Rand, Lira, and Real and Kiwi Dollar.

Guy

My Missus bought a big load of Rand the other day at a very good rate - she's not going on holiday until February. She'll be gutted if the rand goes down more in the next few months.

MG

[BillF]

I just got my investment statement a few days ago and damn! Big losses with the bottom nowhere in sight.

It could be ugly... I am inclined to think that unless you absolutely need to tap into your savings in the next decade, it's best just to grit your teeth and sit tight with a well-diversified portfolio. The worst thing to do at this point is to engage in some panic selling. Of course, I am just an economist, not an investment expert.

Guy

Maybe you're not, but it's pretty obvious that the only reason to sell at this point is to lock in your losses.

On the other hand, if you are feeling frisky, you can go short in Yen and invest the proceeds in a basket of Rand, Lira, and Real and Kiwi Dollar.

Guy

My Missus bought a big load of Rand the other day at a very good rate - she's not going on holiday until February. She'll be gutted if the rand goes down more in the next few months.

MG

Randissimo!

[The Magnificent Goldberg]

I just got my investment statement a few days ago and damn! Big losses with the bottom nowhere in sight.

It could be ugly... I am inclined to think that unless you absolutely need to tap into your savings in the next decade, it's best just to grit your teeth and sit tight with a well-diversified portfolio. The worst thing to do at this point is to engage in some panic selling. Of course, I am just an economist, not an investment expert.

Guy

Maybe you're not, but it's pretty obvious that the only reason to sell at this point is to lock in your losses.

On the other hand, if you are feeling frisky, you can go short in Yen and invest the proceeds in a basket of Rand, Lira, and Real and Kiwi Dollar.

Guy

My Missus bought a big load of Rand the other day at a very good rate - she's not going on holiday until February. She'll be gutted if the rand goes down more in the next few months.

MG

Randissimo!

MG

[Jazzmoose]

Or, if things get really bad, Randissinomo...

[Larry Kart]

From an e-mail a friend sent to me back on Feb. 2, 2007:

"Also, the derivatives market will bring down civilization when it collapses. You heard it here first."

Too bad he couldn't have been in touch with Paulson and Bernanke.

[Niko]

From an e-mail a friend sent to me back on Feb. 2, 2007:

"Also, the derivatives market will bring down civilization when it collapses. You heard it here first."

Too bad he couldn't have been in touch with Paulson and Bernanke.

a friend told me yesterday derivatives and banking will be back the way we know them 10 years from now but consulting firms like mckinsey will collapse next and never come back

(and late last week i spoke to a guy who had graduated in financial engineering that day... he said he had always thought anybody trying to use the stuff he learned in practice must be completely crazy... )

[sidewinder]

graduated in financial engineering

Now there's an oxymoron !

[BeBop]

I haven't been around/posted for about six weeks now, so I've missed out on people's reactions to market gyrations and financial institution news "as they happened". (So much for context.)

But I'll weigh in on the question now: no effect on me.