Yves has a post about how Scotland's banks are asking for capital...
The media bites a certainly professional...
"On paper, Lloyds TSB, RBS and Barclays don't have a pressing need for additional capital.
But they have become concerned that they are being weakened significantly by investors' perception that they are short of capital and their balance sheets need to be strengthened. "
Well, if assets were marked to a fair value those balance sheet would probably look a lot different...
This one got my attention because it mentions the Royal Bank of Scotland. We have a Royal Bank of Canada and it made me realise I don't the history of these banks and how related they might be. I got most my friends out of banking stocks last year. I don't think this looks good for the RBC.
The graph posted on Yves post is truly cliff diving... Ugly!
And my goodness, downgraded to A-.
I would like to point out an important difference between the UK and North America. Already, well before the bubble popping, their standard of living was such that many people live in shared accommodations. There are many houses etc. that have as many unrelated adults in them as there are bedrooms, and sometimes more if there are couples. It means that Britain has already done a lot of increasing household size for affordability reasons. This hasn't happened much in the US yet and the implications of a reversal in the square feet of household living space per person will probably be huge in a down turning economy. And there is way, way, way more room to do this in the US then in Britain. It also means that price supports for housing in Britain is higher because there are more people with income in a household.