Thursday, Apr 17, 2008
UK Tax Payer is now bailing out the whole UK banking sector
Market Oracle: Bank of England Prepares to Ramp Up the Money Printing Presses
"Banking stocks soared on the news, which is not surprising given the fact that the UK Tax payer is now providing the banks with billions in as good as cash securities in exchange for illiquid junk securities. Perhaps Gordon Browns next election winning 'bright idea' will be to make up the difference for all home owners that go into negative equity during 2008 ? "
Posted by sold 2 rent 1 @ 12:01 PM (1581 views) Add Comment
20 Comments
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1. sold 2 rent 1 said...
We really are in the sh*t.
GBP will collapse.
Food and energy will rocket.
And finally we plunge into a deflationary depression.
If you think only homeowners will lose in this mess, you are so wrong.
We all lose together.
Are you mad enough yet?
2. mark wadsworth said...
"Perhaps Gordon Browns next election winning 'bright idea' will be to make up the difference for all home owners that go into negative equity during 2008 ? "
A bit like the Redrow Re:assure House price promise?
3. Dc said...
can't anything be done to stop this stupidity, Gordon Brown has destroyed this country!!!
4. planning4acrash said...
S2r, With an ethical mind, you get mad and see this as wrong. With a creative mind, you see this as a typical non-linear system with unstable positive feedback loops. With a creative mind you seek a self balancing system and achieve co-creation.
5. planning4acrash said...
S2r, you are already there, so you seek stability in gold. Society will too when a critical mass of individuals see the truth. The run up 2 2011 is about system failure and a critical mass of people getting mad about it. Solutions come later.
6. renting2 said...
This looks like it will force a decade (only one?) of real hurt on us all, just to bail out some corrupt bankers, and keep the rollercoaster of profiteering on the move.
Now try saving, or keeping savings - GB/AD will have their eyes fixed firmly on that!! Those who save or who have saved will be the saviour of us all, as long as they are not allowed to keep them.
Savings will be stripped away by a mix of inflation and tax. (Or is that already happening stealthily?)
This rollercoaster needs derailing and fast!
7. mark said...
what will this do to houseprices? push them up again?
8. malct said...
Gordon Brown: Statist or Fascist?
Taken from Gordon Is A Moron by Vernon Coleman
Gordon Brown is sometimes described as a `statist'. I doubt if even his closest admirers could disagree with that description.
Statism is described in the dictionary as a political system in which the state has substantial central control over social and economic affairs. The word `statism' accurately summarises the sort of policy favoured by New Labour for if ever there was a nation which could be described as statist it is Britain as it has been moulded by Brown. I cannot think of a significant British politician who has been more of a statist than Brown.
But the word `statist' doesn't go quite far enough.
And the important question is: what, if anything, is the difference between statism, communism and fascism?
But what about fascism?
There is much confusion about precisely what fascism entails and the word is thrown around rather wildly as a term of abuse. Those who oppose the EU are dismissed as fascists. (Though the EU is probably the most perfectly fascist organisation in history). And politicians and commentators sometimes seem to suggest that fascism and racism are the same thing. (This simply isn't true. Fascism isn't racism. Mussolini's Italy was not racist).
It is, however, fairly simple to find a definition.
The official Oxford English Dictionary definition of a fascist is: `One of a body of Italian nationalists organised in 1919 under Benito Mussolini to oppose Bolshevism.'
So, in order to find out what a fascist really is, all we need to do is find out what Mussolini meant by fascism. Mussolini defined fascism as a political system in which the rights of the state expressed the real essence of the individual. And he went on to say that: `We were the first to assert that the more complicated the forms of civilisation, the more restricted the freedom of the individual must become.'
It is, incidentally, assumed that fascism always comes from the right. But fascism can also come from the left. Indeed, today most fascism comes from the left. And there is absolutely no difference between the two varieties. To the victims it doesn't matter whether the fascism is created by right wingers or left wingers.
9. japanese uncle said...
To: Mr. Gordon Brown
Prime Minister
and
Mr. Mervyn King
Governor of the Bank of England
Dear Sirs:
To make the long story short, I bought half a dozen of tulip bulbs in my local a couple of years ago at 100,000 pounds each. A guy called David pushed them to me, saying they were of an extremely rare kind and would soon fetch at least half a million each. He also said to me that the quality of those bulbs was guaranteed by a botanic laboratory called Bustard & Poo. Regulars in the pub, I mean Tom, Dick and Harry told me that they also had bought a few bulbs and looked forward to be millionaires very soon, telling me that only a fool would not grab such a chance of a lifetime. I instantly decided to invest, but of course I did not have such a big money, so I went to the local bank. Surprisingly they offered me 700,000 pounds, not even having a look at the bulbs nor asking about my income, saying I could buy Mercedes or go on a cruise trip to the Bahamas or whatever, using the extra 100,000. Of course I spent to the last penny, why not?
Last year, as we all know, bulbs prices dropped like a stone and my bulbs are worth 30 p each now. (Between you and me, I forgot to keep them in a fridge, so they went bad and started to stink now). Yesterday, I heard a rumor that the government and the Bank of England are extending a warm hand to poor souls like me and buying the tulips at the original prices. How generous! I have never been so grateful as now for the fact that I was born in this land of hope and glory. Thank you so very much for such prudent and thoughtful handling of this matter. God bless you all!!
Yours sincerely,
John Stupid Bull
10. malct said...
more brown bashing from VC - except! see footnote
Gordon Brown: The Architect Of Britain's Housing Crisis (Taken from Gordon Is A Moron by Vernon Coleman
Third, Labour has done everything it can to destroy the family. There are now real financial incentives for people to live alone. The obvious result has been an increase in the demand for housing.
. . . Fourth, by constantly printing more and more money to pay for its expensive expansion of the State, the Labour Government has dramatically decreased the value of the British pound. When the pound goes down in value everything else goes up. That's what inflation is.
When interest rates are kept low while the amount of money produced is dramatically increased the consequences are inevitable: house price inflation.
Fifth, lenders have become absurdly aggressive - almost forcing barrowloads of money on borrowers, and in so doing have laid the foundations for a serious crash.
Before Brown destroyed pensions, the buy-to-let market was about 1% of the whole housing market. After Brown destroyed pensions, the buy-to-let market shot up to 10% of the whole market.
A tenfold increase in the number of people buying houses and flats as an investment (rather than to live in themselves) has inevitably had a dramatic influence on house prices. Indeed, there is proof of this in that rental prices have remained stable throughout this price whereas house prices have soared and are, compared to rental prices, now at least 50% overvalued.
When house prices start to collapse they will go down much further than seems sensible or logical. House prices have gone up too far. They will go down too far. They will go down too far because people will panic and they will sell at any price. And just as they lost touch with reality when prices were going up, so they will lose touch with reality as prices come down.
Greed took house prices up. (Though there was also the fear that if they didn't buy now then they would never be able to buy). Fear, and nothing but fear, will take prices down.
"It isn't growth, of course. It's debt. And it has partly explained the apparent boom that has taken place under Labour."
"This hasn't just happened in the UK. It's been a global phenomenon."
So - as brown doesn't rule the globe how can we blame him?
11. sold 2 rent 1 said...
malct,
"To the victims it doesn't matter whether the fascism is created by right wingers or left wingers."
Here. Here.
How much more corruption needs to be found before we demand change?
12. harold said...
JU, LOL
13. mark wadsworth said...
What happened to the bonus-rich bankers who were going to ride to the rescue two short months ago?
14. malct said...
"By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some....The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million can diagnose." - John Maynard Keynes Economic Consequences of the Peace, 1920
15. sold 2 rent 1 said...
planning4acrash,
Glad your on board too.
16. malct said...
“The issue which has swept down the centuries and which will have to be fought sooner or later is The People vs. The Banks.” - Lord Acton, Historian, 1834 - 1902
FOR IMMEDIATE RELEASEClassA.doc
Vancouver, British Columbia, January 21, 2005. A lawsuit was filed pursuant to the Class Proceedings Act by Pavel N. Darmantchev of Kelowna, BC and Ian D. Gravlin of Calgary, Alberta at the Supreme Court of BC. The lawsuit which could involve millions of Canadians claims that the Canadian Imperial Bank of Commerce (CIBC) has been engaged in illegal creation of money, where money is being created out of nothing by CIBC. The money which is created out of nothing is then entered into the bank clients’ accounts as “loans.” These loans are not backed by currency or any real tangible asset. Essentially, the bank never loaned any money of their own, neither risk any money of their own, nor do they stand to lose any money of their own at any time.
A POSSIBLE WAY OUT
The Plaintiffs further claim that all loan contracts are void or voidable for non-disclosure of material fact that the bank never intended to loan its clients with real, legal tender money. All monies advanced by the bank to its borrowers are simply IOUs where money is digitally created by computer entry. No cash or any valuable or legal consideration is received by the debtors. The cheques or credits received by the debtors are simply entered into their accounts by CIBC. These transactions are automatically cleared by the Canadian Payments Association regardless of whether or not these transactions are backed by real currency.
http://www.theclassactionsuit.com/classaction1.htm
17. 51ck-6-51x said...
They put their money somewhere with better prospects (maybe they bought a few Banksey's)
18. 51ck-6-51x said...
I mean - can you imagine how much housing Paulson (or Lagrange, Gottesman, etc) could afford with their 2007 incomes alone?
19. 51ck-6-51x said...
(I worked with Lagrange before. He's actually quite a nice guy, outside of business)
20. denzil said...
Mark said:
>>what will this do to houseprices? push them up again?
No, it won't push them up but it would probably impact the amount they fall.