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House Price Crash Forum


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Everything posted by Police

  1. They had revenue of a billion I believe. Whatever their operating margin is determines what profit they made. Probably half that. As it wasn't a public company it wasn't obliged to report to that standard - so I doubt many people know the true figure. A $100B dollar market capitalized company making 0.5B a year? What yield is that?
  2. Big players want yield, because yield equals income and income equals bonus.
  3. That which can be asserted without evidence, can be dismissed without evidence. Any why not? The euro notes are on the balance sheet of the Greek central bank and can be identified as being so. If the liabilities of the bank are to be re-denominated - this will include its note issuance.
  4. Don't you think people could eat 35% less with the other 5% coming from wastage savings?
  5. The ECB and the Bundesbank / any other surplus target 2 country.
  6. That's a wonderful solution. Maybe just the default will be enough, hey.
  7. Spanish exploitation of their silver finds destroyed their economy. Balls is an idiot. What is needed is a redistribution of income - not more money.
  8. Spurs supporters don't vote. Chronically grazed knuckles prevents them from grasping a pen.
  9. Any youtube links for those of us living in leper colonies?
  10. This monetary reforum is starting to get dull.
  11. You've obviously missed the last twenty years then. We are were we are because of a crisis of income and a pooling of wealth to holders of capital. Labour has not been reaping the gains of productivity. Instead they've had non-jobs made for them in an attempt to hold of the denouement.
  12. This is getting boring now.
  13. There have been a few threads on this already. UK doesn't have exposure to target2. The Bundesbank on other hand - $500 Billion at the last count.
  14. I don't have a clue what you are talking about. Here is the interim income statement for RBS for 2012 http://www.reuters.com/finance/stocks/incomeStatement?symbol=RBS Interest Income, Bank: 5,017.0 Total Interest Expense: 2,018.0 2/5 of RBSs interest revenue is being used to service its creditors. Even with low interest rates, the current environment, and not including loss provisions this is nowhere near the extortion you claim it is. You are suggesting that non-clearing banks borrow via LIBOR all the money it needs to fund their loan books. Clearly, this is nonsense too given that clearing banks like RBS cannot fund its own creditors with investments made solely into LIBOR. More nonsensical is the fact the monetary base and central bank balance sheet does not equal the size of the combined balance sheets of these institutions. Here's the funding profile of RBS in 2010. They certainly don't service this with loans made into LIBOR, ergo non-clearing institutions are cannot be entirely funded at its rates. The truth is I believe non-clearing financial institutions will have similar funding profiles to RBS and will be taking not too dissimilar spreads net. Maybe you'd like to name such a financial institution so we can put this to bed?
  15. Incorrect. Assets = liabilities. Hsbc owes as much to shareholders, depositors, central bank, money markets etc etc , as borrowers, central bank, other debtors owe to it. It's called a balance sheet because it always balances.
  16. How on earth would I know without looking at their books?
  17. How long have you been on this site? You still don't seem able to grasp the basics. If a bank lends a million it has to owe a million too. The interest profit would not be 90k. I find it hard to take your diatribes seriously when this has been explained meticulously many times before.
  18. This is slightly different since the Swiss will be buying foreign currency and not selling it.
  19. Nothing like the good old days when we were on the brink of economic collapse and sure that a house was going to be bought for pennies on the pound.
  20. Not at all. You are saying that liquidity can disappear abroad. It cannot - evidenced by the fact that money doesn't move. If a bank obtains funding from markets denominated in foreign currency - then it can have a problem if those markets freeze up and it needs to roll over its foreign denominated liabilities - but this has nothing to do with a trade deficit. Can happen to a bank which has funded itself in such a way - in a trade surplus country. The location of the bank is irrelevant.
  21. No. Money doesn't move. It never does. It stays in the same place it was created. In the central bank. You cannot send money down copper wires. Can't be done. What moves - or appears to move - is capital. Public capital in the banking system is the debt of the banking system. One bank says they no longer owe you - The other bank says that they now owe you instead. This is the "movement".
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