Thursday, Jun 21, 2007
A BIT LATE!!!! THIS GUY HAS SLAMMED THE DOOR - BUT HORDE OF PIGS HAVE STAMPEDED OUT OF THE STYE!!
BBC: Governor issues 'toxic' debt warning
The Bank of England Governor has warned the City that an explosive rise in lax loans and complex debt instruments now represents a major threat to global financial stability. Mervyn King at the Mansion House last night
In a remarkable speech at the Mansion House last night, Mervyn King issued a caution to the corporate debt market, where banks have dramatically loosened their lending conditions and devised ever more advanced means of extending cash to customers.
Posted by eric pebble @ 02:43 AM (155 views) Add Comment
11 Comments
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1. uncle tom said...
I'm increasingly convinced that our Merv does not want to remembered as the governor who fiddled while Rome burned...
2. Tangara said...
I think he knew the facts since long, he only decided to unfold now and to "charge" the banks. Gordon brown linked ?
3. sovietuk said...
Problem is half of Merv's committee probably don't give a hoot about whether Rome burns or not.
4. sovietuk said...
Resignation(s) coming up????
5. Orwell said...
Exactly, now you tell us Swerve...
"Be cautious about how much you borrow is not a bad maxim for each and every one of us here tonight."
But not your puppeteer?....
The Office for National Statistics also reported that the public finances worsened in May, with public sector net borrowing widening to £8.2bn, compared with £7.7bn a year ago.
6. dohousescrashinthewoods said...
I seem to remember that in post-WW Germany's inflation period, companies specialising in debt did very well for a time (private equity anyone?). When the deflation hit, they vapourised and those companies who were in it for genuine business survived.
S2R1, this could be an indicator that we are heading in the direction you have been talking about - deflationary depression. If we discount official figures as propaganda, it would also indicate we are well into hyperinflation. With money supply / cheap credit being what it has been for the last few years, that really doesn't seem unreasonable.
In fact, just look at house prices - 200% increases and London still going at 20-25% a year, as compared to majority wages of 0-5% a year. If we close our eyes to the official line and just look at what is in front of us, it seems remarkably clear. In fact, post-WW Germany also appeared, from the inside, to be experiencing a boom in early stages of the inflation.
Could it be that so called "fat-cat" salaries are in fact just keeping up with inflation?
7. Shelock Homes said...
"hey gordon," what tony," can i have that fiver back i lent you last year,do you remember? when we are ascot" you were flush and i was short and i liked the name of the horse
what was it again, my memory fails me?" it was called 'big bucks' tony, i liked the name of it as well, but i put my money on 'galloping inflation' , odds on i knew it would win
my horse was an arabian stallion, and yours i think it was a shire horse tony" ,so what you going to do now in your retirement, tony?" think i might get into property speculation, got any good tips for me gordon? mmm grumpf mumble mumble, . buy one get one free, and soon two for the price of one,"
8. george monsoon said...
Taxi ! --> to the Airport please!!!
9. royston said...
No sh!t, Mherlock!
10. royston said...
Merv, mate!
If you want a heads up on where the economy / inflation / interest rates are going, read this site. We have been on-the-money and well ahead of the pack for well over a year now (I can't vouch for much longer than that - I wasn't a regular before then). The language can be a little bit emotionally charged and we can be downright rude about your sort, but none of that changes the fact that our economics is spot on! In addition, we can slice through VI spin like a laser.
11. Seenitallbefore said...
MPC fence sitting. How it works.
9 members. One month 5-4 against, next month 6-3 against, next month 7-2 against, next month 6-3 vote for 0.25% raise. Next month 5-4 against, next month 7-2 against etc. etc.
All the while the actual members shuffle around except for good old Blanch but the vote is nearly always to hold. It summary, shuffling the pack of members who vote one way and then the other to maintain a hold status quo produces a result of : SAME SHIT, DIFFERENT BUCKET.