I am facing a credit squeeze – liquidity crisis rather but it is not because of the current capital market crisis or even because of my lack of confidence with the Bank of England. I am just plain broke that’s all and that’s life. Everything seems to be kind of crumbling for Barclays if we are to believe what they are telling us is true. For the second time in a fortnight there has been a hint that the liquidity position of the banking group is not very good after it was forced to borrow BOE emergency lending facility. As expected such antics spread around like wild fire especially for a bank.
Anyway the bank still has a lot of explaining to make – it still has a pending take over bid over ABN AMRO that has yet to be settled – the longer it takes in my opinion the more painful it will be for Barclays.
Even as the bank appeals for calm senior mangers have departed of late – of course that only fuels speculation which is irritating to the bank (what else are we supposed to think?)
Could it be that other banks are enjoying this? This lending happen as a last resort I’m made to understand – it is cheaper to borrow from other banks and it can also be more secretive.
Like Barclays my liquidity position is because of a technical glitch – paying the rent this weekend. The only advantage since I am credit worthy – got collateral – I think someone will bail me out and no need to fear that others will know about it.
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