Tuesday, Dec 18, 2007
It will be March next year before banks declare the extent of their losses
Telegraph: BoE's King says sense of 'fear' needs dispelling
BoE says it will be March next year before the banks declare the extent of their losses. In addition, they are now awash with cash - well thats a surprise after being given 500billion today! Finally, BoE does not think that bankers understand the sub-prime market!! Is somebody going to tell us something we don't know?
Posted by who stole my pension? @ 09:08 PM (393 views) Add Comment
6 Comments
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1. crash bandicoot said...
"He criticised those who dealt with the sub-prime market without understanding it"
Yes traditionally sub-prime lenders turn up on your doorstep every Friday evening looking to collect their payment with a little gentle persuasion. Imagine the brain storming session that ended up with the theory that it would be a cracking idea to lend hundreds of thousands of pounds to people who had already displayed an inability to meet their borrowing obligations! Next up we'll be leaving cases of whisky with the tramps down the park for safe keeping. Unforseeable circumstances?
2. The_harder_they_come said...
"There is a big pressure to focus on short-termism. It is a collective madness, the idea that everyone can always have an above average return."
Oh dear, so the investment strategy of 95% of the world over the last 5 years, (give me super-returns but it must be AAA), is intrinsically flawed. There is no super-returning AAA, just CCC dressed up. If the emperor really had no clothes, why didn't Merv and the BoE tell us? Why did we have to depend on the used-to-be-extremists from HPC for the truth? Is the fundamental problem very close to home i.e. central bankers acquiesced in systemic deceit?
Or, put it another way, if the central bankers are running for cover, pretending to be the voice of reason when they fiddled while Rome burnt, that means we are in the last days. It's every man for himself, because "I can't hold them any longer, the lithium crystals are going to blow Jim"!!
3. European-bear said...
Sub prime is easy to understand. Bank finds someone willing to sign up to a big mortgage (anyone will do....no need to be able to prove income, assets, financial solvency etc). Give them all the cash they want secured on anything the punter wants to buy. Take a fee from the loan. Sell the mortgage security on to the financial markets and instantly get back all the money just loaned out. Pocket the fee......The bad risk is no longer the banks problem....
That was easy, anyone want to give me a big city bonus as I clearly understand sub prime, then I can buy a pad in Chelsea....
4. inbreda said...
And here we all are forking out £2,000 each on average (probably a lot more for most readers of this site) to bail these dumb fuggers out. I can't help thinking that they are the clever ones.
5. Moley20 said...
If Northern Rock is Nationalised and the loan from the Treasury is not repaid. I am going to issue a summons in the small claims court to recoup my £2000 from the treasury
Anyone want to join me?
6. renting2 said...
I have the nasty feeling that the eventual bill will be a lot more than £2,000 each. Redundancy and unemployment benefit etc all cost the remaining taxpayers money. I also wonder who else will call for the taxpayers help in the near future, those in negative equity, landlords providing accommodation? And they might get it just to keep the ship afloat a bit longer!