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Everything posted by leicestersq

  1. Yes, full agreement here. Even those that were in banks that were not bailed out are receiving excessive pay because they control the shareholder votes of others, at the expense of those shareholders.
  2. It gets a bit complicated when debt is subordinated, as the ecb has achieved here. Even though some may not have failed to receive a payment yet, I would still classify that as default.
  3. These are fraudsters too. Stop trying to excuse criminality by referring to the criminality of others. It should all be punished and ill gotten gains seized, plus punitive fines.
  4. Wake me up when they seize the assets to make good on the losses.
  5. I suspect that the strength of gold isnt going to go away anytime soon. Has the Bank of England been buying at all? Need to make up the for gap left when someone sold it all off on the cheap.
  6. http://www.zerohedge.com/news/isda-unanimous-no-payout-greek-cds Now I dont pretend to know the intricacies of all this, and they might declare a default at a later point in time. But if they dont declare a default when people dont get paid, what will the regulators make of all this? There must be huge amounts of assets sitting on the books of banks and other institutions, that are now worthless. Up until now, you could mark a CDS at a pretty high value for Greece, as it goes up in value the more likely said borrower is going to default. The insurers though, have decided that they arent going to pay. So are any of these things worth anything? Have they just tipped one set of financial institutions into insolvency?
  7. Great article from the Telegraph http://www.telegraph.co.uk/news/politics/9113581/Extraordinary-tales-of-fraud-and-failure-in-Whitehall.html £500 cost for every person in the UK for fraud against the taxpayer. I reckon that they are underestimating the scale of the thing. And this doesnt take into account those who game the system, ie those who act to the letter of the rules but not the spirit of it. The best way to address this of course, is to end the schemes that allow the frauds to be perpetrated.
  8. It's a case of the immovable force meeting the irresistible object.
  9. Yes, but the houses will become free for people in rented at the moment to buy. All that will happen is that people will swap houses, with those having saved getting better houses, and the taxpayer no longer having to finance this.
  10. Banks get subsidised, but the real gainers are those who get a free house.
  11. So what. The taxpayer gains. The new home owner gains. Society gains from the application of moral hazard. The losers are those that deserve to lose.
  12. If you own an asset outright, by borrowing money unsecured, they can still get your house if you don't repay. It would cost you less if you formally secured the loan against the house.
  13. These figures are huge. Massive frauds are being committed against the banks here, the numbers are too large for any other explanation. With little in the way of government support for the law, the banks are going to have to do something about it. Whilst the losses are falling, they still need to think very carefully about who they lend money to. Anyone without a house or some other securable asset would be someone I wouldnt give a card to.
  14. Gosh, so if you stop giving people other people's money so that they can get a free house at the expense of others, it causes hardship on those getting a free house. No concern from the Guardian for those having to work to give someone else a free house. I bet these slave drivers at the Guardian in ancient times would have been horrified at the hardship enjoyed by the Pyramid Building Pharoah who had to pay for workers out of his own pocket after the slaves had escaped.
  15. They have been trying to cool a boom, and it looks like they are succeeding. Not many governments are sage enough to do that, most let the boom rip away. Got to give the Indian lawmakers full credit for their policies on this.
  16. Interesting blog from the BBC. http://www.bbc.co.uk/blogs/adamcurtis/2011/12/the_bitch_the_stud_and_the_pra.html Like Guy Hands, Michael Spencer too has found an innovative way of making money out of the best intentions of the government. He is one of a select group of City brokers who make Quantitative Easing work. Their job is to buy up bonds using government cash - taking a tidy cut for themselves for every bond purchased. At the last count the government had pumped in £275bn. Spencer has been quoted as saying "the crisis is good for business." A quote from the article. So it is recognised that the way the state is doing QE is wrong. If you are going to carry out this policy, it should be via direct financing of state expenditure through money printing, or else you give bankers money for free. Anyone see "The Calamari Wrestler"?
  17. What they need to do is set up a UK call centre.
  18. All the parallels are with poker. With Greece though, their cards are fully on show. Their one power is the carnage they could unleash through default. The one weakness with their power of default is that we all know that they cannot do anything other than default anyway.
  19. Going nuclear signifies to me that you reach a point where in order to get what you want, you are willing to destroy yourself and your third party in order to get what you want at the negotiating table. Greece could do that, and ask for a grant or a big cheap loan or something, with the threat of a complete default if they dont get it. They havent played that card though, at least I dont think that they have.
  20. When the state borrows lots of money and raises public sector wages and benefits, it crowds out the productive private sector. Why work there when you can get more working for the state? Private sector companies cannot compete for labour without raising pay, which means that profit margins get squeezed and many go out of business. When the whole bubble collapses, it is difficult for those private sector companies to come back as the skills they need have been lost. The only way you get them back is to make the supply of labour so cheap, that even a fool of a businessman can use said labour profitably. The Greeks have a long way to go to reach this nadir. This lesson will come to the UK soon.
  21. So will the ISDA people have to confirm this default for the mayhem to start?
  22. 10% deposit seems like a risky bet to me. Even 15% is pushing it a bit. Perhaps the authorities are forcing high ltv mortgages to take a much lower mark on their books.
  23. The south of England is an urban area, with a few parks.
  24. I thought that the German offer to go and show them how to collect tax was pretty reasonable on the whole.
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