Looks like HSBC have made too many bad loans and will be the next ‘Northern Rock’.
Overlending is a serious problem – in the 90s a fair chunk of money was lost to emerging nations and the Eastern block. Banks re-focused on domestic customers as business loans ended in tears.
Sadly it’s a boom – bust principal. Put the steak out and the dogs will run and eat it – without looking at the cost of their meal.
Governments try to easy the situation but it’s all to slow mass panic stock market selling.
Sit tight people, this is the beginning of the end (of free and easy lending).
