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lufc

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About lufc

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  1. BUMP Times might become interesting again Lots of talk of money exiting bonds in favour of equities and I assume strengthening commodity prices. Your thoughts and commentary over the next few months would be much appreciated FT.
  2. From the Boe's website The FLS will open for drawings on 1 August. For 18 months thereafter, banks and building societies will be able to borrow UK Treasury Bills from the Bank for a period of up to 4 years against DWF-eligible collateral, for a fee. Participating banks and building societies will be able to borrow up to 5% of their stock of existing lending to the real economy, plus any net expansion of lending during a reference period (from end-June 2012 to end-December 2013). I read this as meaning the FLS ends December 2013 and will be reversed in 4 years time, in which case any uptick in lending will be very short term. Any ideas ??
  3. Spot on. In terms of debt servicing what savings have been made by ultra loose monetary policy have been eaten up by non discretionary inflation.As you point out this isn't the 1970s, the UK has the rest of the world to compete against now and as the rat Sir Mervyn says he can't control global commodity demand/prices can he !!!
  4. Best buy 5 year fixed rate bond 4.6% Theoretically cash buyer on £250k house purchase borrows 60% of purchase price @ 3% with HSBC - ignoring repayments this would be £24k including arrangement costs Compounded interest net of tax from the fixed rate bond would be approx £29.7k. Nice little bit of beer money or have i got my sums wrong ???
  5. Its not relevant until the point where UK banks are forbidden buying gilts with newly created BOE monopoly money.
  6. Why is it nowadays HPC seems to miss the most relevant news ??? http://www.telegraph.co.uk/finance/economics/9415638/Chancellor-seen-at-risk-of-public-sector-borrowing-overshoot.html
  7. A gloomy report but will it be outweighed by seemingly limitless amounts of stimulus being conjured up by the Boe and Government. Meanwhile : BIS voices concerns over the same Central Bank stimulus Government borrowing came in at £18 bn The Eurozone gets another sticking plaster City tainted by Libor scandal All most frustrating.
  8. Even though this plays out as a slow motion train wreck and it seems that each Central Bank is as inept as each other, I wonder how long before we start to see a proper run on a currency. In as bad shape as Europe is in, if I were the BOE I wouldn't get too cocky.
  9. It will be difficult for them to get away with more QE in the near term with CPI likely to break through 5% in the next few months. If the FED go on a printing spree with resultant commodity price increases before the BOE, then I think it would be even more difficult.
  10. Clueless Tossers sometime soon hopefuly these w@nkers will be held to account,
  11. Does this not apply to Sovereign default ... I should well imagine that UK bank/insurance involvement is significant.
  12. FWIW I can't see how UK banks are going to come up with £500 bn to lend without ye olde securitization markets some how miraculously coming back to life. Unless of course the Government are going to "create it" whilst hoping that no one else notices.
  13. Negligable wage growth, High inflation, just borrow more ..... http://budgetresponsibility.independent.gov.uk/wordpress/docs/household%20debt%20paper%20formatted.doc1.pdf .... oh dear.
  14. For what its worth I think the Western sovereign/bank debt monetization process is very close to hitting the tipping point. Been said many times before but Central bank monetary policy will count for little once the BRICS/East start to dump Western debt & currencies. Then the sh!t will hit the fan in one way or another, rising food prices and resulting troubles in the Middle East could be the precursor to an awful lot worse.
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