Ten reasons why it's all going to go horribly wrong (dated: 05/03/2006)

Telegraph ^ | 05/03/2006 | Jeff Randall

[TigerLikesRooster]

Ten reasons why it's all going to go horribly wrong

By Jeff Randall

Last Updated: 12:37AM BST 03 May 2006

In my first year as business editor of the BBC, 2001-02, I became known by Television Centre veterans, such as Michael Buerk and Peter Sissons, as a harbinger of gloom. Whenever I turned up at the Ten O'Clock News desk with a business update, it seemed always to presage a corporate disaster.

The implosion of dot.com dreamland, the subsequent shake-out in global stock markets, revelations of some heavy-duty corruption in America and the atrocities of 9/11 led to a remarkable spate of famous companies running into deep trouble, or worse.

Some of Britain's biggest businesses fell part. Cable & Wireless and Marconi blew a fuse. Jobs were slashed at British Airways and Rolls-Royce. Overseas, Swissair and several US airlines went bust.

One story, however, above all others seemed to attract the attention of BBC big-wigs: the unravelling of Equitable Life.

Having been warned by director-general Greg Dyke that too few of the BBC's programme editors and presenters were interested in business, it was gratifying to learn that so many were concerned about poor old Equitable and its hapless members. Then I discovered why: they were its hapless members.

In good faith, the BBC had promoted Equitable as a supplier of pensions and savings schemes to many of the corporation's biggest and best-paid names. Not surprisingly, they reacted with horror every time I appeared with yet another twist to the tale.

[TigerLikesRooster]

Something we all knew, but he wrote it on a major newspaper.

[GladesGuru]

WE HAVE A WINNER ! ! ! ! !

[ex-Texan]

Yeah, we agree. Did you listen to Coast to Coast AM last evening ________ ? Shocking commentary. Catherine Austin Fitts said, 'What's going on with the bailout is more than theft, it's a coup d’état" –-a "reengineering of government institutions," she declared. Guests and callers were 90% opposed to the bailout. Some people were outraged by the Senate vote.

[UCANSEE2]

Here is exactly what is going on.

http://www.dailymotion.com/video/k6KUDv1wzraWhwlBt1

[pointsal]

Didn’t Dingy Harry Reid make reference to an insurance company that was on the brink? Which outfit was that?

[TigerLikesRooster]

Right. Once reengineered, it will stay that way. The reengineered institution will not disappear. It won't be held accountable to general electorate, only to small number of folks with powerful vested interests.

[TigerLikesRooster]

I also want to find out, but haven't so far.

[stocksthatgoup]

Insurance Companies are likely the major holders of the subprime mortgages outstanding. AIG was the biggest, but I doubt if it was alone. (More to come)

[AndyJackson]

The ten reasons. Even though for UK, the US problems are the same:

1. Consumer confidence is evaporating

2. Small investors are piling into shares

3. Oil bills are burning a hole in our pockets

4. We’re choking on personal credit

5. House prices are detached from reality

6. UK public finances are out of control

7. US debt: over-borrowed, over there

8. Pensions: we’re getting older and poorer

9. Assets prices: they can’t all remain high

10. Cheap money: a vanishing luxury

[mrmargaritaville]

WOW!

[TigerLikesRooster]

That is a great video. The guy is really good.

[Travis McGee]

We’ve seen it coming for years.

[ovrtaxt]

The Hartford tanked on Reid’s comments.

[ovrtaxt]

Bump for that. great find!

[TigerLikesRooster]

So it was Hartford?

[ovrtaxt]

There was definitely a strong corrolation- but I haven’t heard anything definitive.