Today (October 7th, 2008) has been another bad day for the UK bank stocks with some of the major banks denying that they asked the British Treasury for money. It looks like there is going to be some recapitalisation although opponents of nationalisation or partial nationalisation say the banks should look for merger/sale deals with stronger partners. Anyone for Abu Dhabi? I wonder what the government would think if the Qataris swallowed up Barclays.
Looking back at an old copy of moneymarketing.co.uk for July, there is an interesting article by Mark Dampier, head of research at Hargreaves Lansdown. He notes then that bank stocks were already down 44.9 pct for the year. Dampier also emphasises the importance of the housing market, since it employs directly and indirectly millions of people. However, the housing market will continue to fall.
Dampier says "In the future, people will look back on 2008/10 as the Great Deleverage."
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