Tuesday, Apr 22, 2008
"It is pretty small beer," said Simon Rubinsohn, chief economist for the Royal Institution of Chartered Surveyors.
BBC: Darling backs £50bn bank bailout
Bail-out?
The BBC's business editor Robert Peston said the primary purpose of the scheme was to prevent another Northern Rock, not to try and bring down mortgage rates.
"Or to put it another way, taxpayer support is being provided to minimise the risk of huge future losses for taxpayers from another banking collapse."
Posted by malct @ 08:11 AM (343 views) Add Comment
6 Comments
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1. malct said...
It will only apply to mortgage debts on banks' books at the end of 2007 and the swaps cannot be used to finance new lending.
The central bank anticipates that initial take-up of the scheme will total £50bn but there is no cap on lending.
2. tyrellcorporation said...
"but there is no cap on lending." This is unbelievable. Surely this contravenes all sorts of EU laws into State support for private companies???
3. renting2 said...
IMHO only if someone takes UK to court TC. Suspect there is a lot of smoke-filled room talks taking place now between member states.
4. Orwell said...
It is small beer. The banks according to Vince Cable on PM (Radio 4) last night are going to have to fess up to £750 billion. Now that is a lot of money.
5. tyrellcorporation said...
The EU always loves to have a go at the UK government so I'm sure they're looking at what's going on with intense interest.
6. bystander said...
Why is no-one taking the ECB to court, when they have and still are flooding the financials with liquidity on the same toxic mess that Merv has now, eventually, after a lot of prodding by GB and AD, decided to lend on? I do not get this BoE bashing rhetoric when the ECB have caused massive inflationary pressure in the eurozone through their liquidity policy, and yet they are allowed to spout about controling inflation expectations, and not dropping rates, while feedingt the inflation. The ECB is putting itself in a position to have to raise interest rates, while the BoE is currently hell bent on lowering interest rates, with the blessing of the fiddled CPI figures. Euro goes up, sterling goes down, parity, united europe under one currency, an impoverished UK. When house prices, food, oil, everything infact, have been converted into euro on parity, then the sheeple will truly see the cost of GB's miss-management. Inflation will then run at 30% and the BoE will have no power to raise rates, as the ECB will become omnipotent. I hope I am wrong