This BBC Video summarises the financial situation to date:

http://www.bbc.co.uk/news/business-13991135

The debts of the Western World are staggering; including individual, company, government and country debts.
This has really hit the main news over the last couple of months but it is quite clear that this is just the start.
Individuals, companies and governments have to realise that they are going to have to live within their means and as a result there are going to be some major life style changes for the middle and lower class.

Which of course they are going to accept just like that, isn't it, given that "we're all in this together" (c) The Conservative Party 2010

I feel that this shocking outburst by the ben bernank gives a better idea:

Drunken Ben Bernanke Tells Everyone At Neighborhood Bar How Screwed U.S. Economy Really Is

[or just look at the price of gold]

edit: oops, Zuger beat me to it in OT: Drunken Ben Bernanke Tells Everyone

Less money for the middle classes = less money for those living off other people's money

Some people must be worried.

You didn't believe this story did you Carver?

That is the daftest question I've ever seen on the interweb. Congratulations.

http://www.bloomberg.com/news/2011-0...on-accord.html

Wow. Will funds mandated to hold only AAA investments dump treasuries, or just change their investment criteria?

shedding large numbers of IT contractors in Zurich maybe.

This is in fact the path to success...

The US of AA+ responds to the downgrade: http://www.zerohedge.com/news/joint-...-fdic-ncua-occ

Mandating the bankers to keep propping up treasuries may only work for US organisations. One would have thought that a black monday is ahead, but this downgrade must have already been priced in through the usual insider leaks.

Someone made out like a bandit last week. Bet they've got friends at S&P: http://etfdailynews.com/2011/07/25/investors-the-1-billion-armageddon-trade-placed-against-the-united-states/

Why do you say that? Must've been the best telegraphed downgrade in history.

Ah, you did believe it then

The people who matter will stick with the US because they have nowhere else to go. The lowering of the US credit rating amounts to a downgrade of the sovereign bond market as a whole.

In general, Insider trading is rife in the city, and almost always goes unpunished.

That someone made a massive bet on the downgrade 1 or 2 days before it happened is an indicator, and that they apparently made the trade in such a rush (when you claim that it was well telegraphed, thus giving them plenty of time to organise the trade had they not been relying on insider info) is another.

anyone who longs long dated US Treasuries is a sucker and i suspect a few of them will start realising that pretty soon...

US announced today they are investigating 5 more Swiss banks & one from Lichtenstein (spelling?) - no names as yet

Buried amongst all the other news today was a statement that Germany & Switzerland have reached an agreement on taxes.
Swiss banks will pay an advance payment of 2bn to Germany which it is hoped will be recovered from their German customers according to some complex scheme.

It is expected this will be a model for other agreements to be completed to soon pay some billions to other countries.

BTW, for the brave and/or foolish - CS shares are at a 5 year low today

Gullible or what. Feeling embarrassed about posting this tripe?
You really have to stop believing what you read on the outer limits of internet blogs.
I've said this before Carver. You should start your own thread instead of peppering what used to be a good one with conspiracy rubbish.

Fair point Marton. Even accounting for today's rebound, bank stocks are low. The question is how long before you make money and what is the opportunity cost vs investing in alternatives. Obviously if you're day trading and you call it right on any given day, you can make a mint trading bank stocks, as this week shows. But I reckon most of us aren't that lucky.
Bigger picture, performance of banks are tied to the sovereign debt problem. As long as sovereign debt remains an issue, banks stocks will be volatile because they're exposed to a lot of sovereign debt. Some more than others, but markets aren't in a mood to pick and choose. Financials are gapping around as a group. It has little to do with specifics. Macro determines direction.
On top of that, stocks in general aren't flavour of the month, and economic growth is weak (important to bank profits) so that's another two things working against you.
The danger is, even if banks don't go bankrupt, this could lead to another credit crunch.
I haven't held a financial stock since 2007. I'm not planning to change that now.

PS if you're a non Swiss franc investor in it for the long term and were considering CS, you'd also have to have a view on the Swissie if you were to buy CS or any Swiss stock now. Save haven FX moves could have a real impact on CS's profits and on your own portfolio returns.