Doomed! We’re all Doomed !

At least, that is what it feels like every time I look at the latest news from the financial sector. Which multinational banking behemoth will fail first? seems to be the unasked question bouncing around the world. And how many innocent depositors will it bring down with it? is the next one.

For my professional life, I closely follow what is going on in the financial services sector as a way of gauging where property prices are going. The morons at the Royal Bank of Scotland recently divulged the amount of money they managed to lose in 2008 - £28 billion. £28 billion? How on earth do you lose that much money in such a short space of time? Easy - these lying sacks of shit were basing their last ten years "banking profit" almost solely on over-inflated asset valuations. If you were wondering where property prices in the UK are going, just look at the banking losses and see how much of the "profits" from the past this wipes out - that will give you a good idea.

For starters, prices are going to return to 1997 levels minimum based on the fact that 10 years profits have effectively been wiped out over the last quarter. And we haven't even begun to incorporate the "loss in value" of the commercial property crash - we will start to get that this year.

If you thought there was a lot of risk in trading forex, these guys in the banking sector have taken risk to a whole new level. One thing I learned playing poker for a living was "never put all your eggs in one basket." Guess it doesn't matter if the eggs belong to some one else.

You could actually say that the banks have done more damage to America than any terrorist organization. They have certainly done more damage to the UK. How about a few bankers locked up in Gitmo and tortured for a while. Any objections? No? Then let's do it.

Meanwhile, the luxury market along with all other markets is feeling the pain of unrealistic over-valuation. Burberry just fired some staff along with goodness knows how many other "luxury" makers.

On a brighter note, my good friend Avi Abrahams over at Dark Roasted Blend has decided to beat the "credit crunch" by offering a new range of T-shirts and Mugs with the DRB logo and some fantastic artwork.

"Support your friendly neighborhood blogger," is my this year's motto. Pay him a visit and waste hours of time looking through his collection of weird and wonderful stuff. And if you feel the need for a decent coffee mug, spend  a few bucks. Let's face it - we will all be making coffee at home this year......