Thursday, Nov 29, 2007
LIBOR rate highest since Northern Crock broke
FT: New fears for UK housing in credit collapse
The LIBOR rate hit 6.59% and banks are now struggling to find money to lend for mortgages. CML states it is an illusion to think savers deposits can make up for shortfall in wholesale funding (shortfall is 3.5billion per month). Bankers say there is nothing they can do.
Posted by who stole my pension? @ 04:40 AM (777 views) Add Comment
8 Comments
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1. yorkshireman said...
Bankers say there is nothing they can do ? Yes there is. They can allow house prices to fall to levels which are in line with wages. Stop trying to prop the market up. Forget the 5,6,7 or 10 times multiples for funding a house. End the deceit about supply and demand. Start thinking about other people and talking some common sense.
It is the CML who are living in an illusion if they fail to realise this and act accordingly. They have no one to blame but themselves and their greed.
2. handle_it said...
With the greatest respect I think you’re over complicating the situation. All they have to do print more money and manipulate any unpopular statistics. Duh, Wake up silly !
3. yorkshireman said...
Blast ! I should have thought of that.
4. voiceofreason said...
handle_it, I agree, because remember interest rates are at historic lows and China and India will keep them there :-)
So 10x earnings is affordable now....
5. Urine Trouble said...
Thats really nice, now lets all move our savings into NSandI or Gold and watch it crumble like a dunked Hob Nob.
6. Hotairmail said...
"Jackie Bennet, head of policy at the CML, told a City audience it was an illusion to think banks’ retail deposits could cover any shortfall in wholesale funding for mortgage lending"
Well clearly they can...all that has to happen is for asset prices to fall.
7. alan said...
The institutions are hoarding cash. See earlier posts referencing Bloomberg. That's why 30bn Euros has been pumped into the system by the ECB.
The shortage of funds is artificially encouraged.
8. sold 2 rent 1 said...
"His comments, that the central bank would be “flexible and pragmatic” prompted a surge in global stock markets which sent the FTSE 100 up 2.7 per cent at 6306.2. The Eurofirst enjoyed its biggest one-day rise for more than four years while the S&P 500 was up 2.58 per cent at luncthime."
This is madness. Expect stocks to be crashing next week