Taxpayer To Insure Treasury's £400bn Toxic Loan Scheme

[lufc]

http://www.telegraph.co.uk/finance/newsbys...oan-scheme.html

The pounds recent revival even against the dollar will soon be put into reverse once the market gets it's head around this little lot.

UKplc RIP.

Edited to add ... nearly 30% of GDP !!!!!!!!!!!!

Edited February 8, 2009 by lufc

[HAMISH_MCTAVISH]

http://www.telegraph.co.uk/finance/newsbys...oan-scheme.html

The pounds recent revival even against the dollar will soon be put into reverse once the market gets it's head around this little lot.

UKplc RIP.

Edited to add ... nearly 30% of GDP !!!!!!!!!!!!

£400 bln is just a start.

Thats just the banks toxic asset scheme, and it will likely end up more like £600 bln for that alone.

Then add in the other stimuli, such as £350 bln already announced for mortgages due to hit between May and Sept, plus all the other sector bailouts.....

I expect we'll be looking at at least 100% of GDP this year alone, maybe 150%. At least 1/2 of which will be paid for through QE.

It will work too, to a large extent, although future generations will likely have a scandinavian level of tax burden to deal with, unless the Tories can absolutely gut, butcher and fillet the public sector, which would be no bad thing IMO......

As for the markets, the pound is oversold, and now rising, no matter how bad we get, the eurozone is infinitely more fecked, and even QE will not bring the pound to parity with the euro. As for the dollar, the USA will be doing exactly the same as we do, and probably a few months before us. I think we've reached a likely long term trading level against the dollar too.

Edited February 8, 2009 by HAMISH_MCTAVISH

[Guest BoomBoomCrash]

What future generations? The tax burden is going to be so high nobody will want to live here. What we are witnessing is how a 1st world economy becomes a failed state in 1 year, all thanks to that gormless jock.

[HAMISH_MCTAVISH]

What future generations? The tax burden is going to be so high nobody will want to live here. What we are witnessing is how a 1st world economy becomes a failed state in 1 year, all thanks to that gormless jock.

Rubbish.

The Tories can absolutely gut, butcher and fillet the public sector, which would be no bad thing IMO......

And STILL provide the basic social services that are a key component of a civilised society, whilst ensuring the budget defecit and national debt are brought back in line.

In fact, by radically reducing taxes, it is more than likely that the economy can be grown to a sufficient level that tax revenue will actually increase even based on lower nominal tax rates.

Of course, it is still very questionable that Cameron would have the balls to achieve this, given what a pandering lefty he has turned into.

[lufc]

£400 bln is just a start.

Thats just the banks toxic asset scheme, and it will likely end up more like £600 bln for that alone.

Then add in the other stimuli, such as £350 bln already announced for mortgages due to hit between May and Sept, plus all the other sector bailouts.....

I expect we'll be looking at at least 100% of GDP this year alone, maybe 150%. At least 1/2 of which will be paid for through QE.

It will work too, to a large extent, although future generations will likely have a scandinavian level of tax burden to deal with, unless the Tories can absolutely gut, butcher and fillet the public sector, which would be no bad thing IMO......

As for the markets, the pound is oversold, and now rising, no matter how bad we get, the eurozone is infinitely more fecked, and even QE will not bring the pound to parity with the euro. As for the dollar, the USA will be doing exactly the same as we do, and probably a few months before us. I think we've reached a likely long term trading level against the dollar too.

The £ vs the $ is like a minnow swimming against a great white shark.

Euroland (even though I think it will break up) doesn't have the great debt headache hanging over it.

UKplc is in deep shiiiit as Messr Sarcocky explained.

Give it a couple of months and what is left of the free (currency) markets will give their opinion.

[huw]

Of course, it is still very questionable that Cameron would have the balls to achieve this, given what a pandering lefty he has turned into.

If he had the balls for it, he wouldn't be elected. Things aren't bad enough yet.

Come the hour, come the man, come the mandate ... hopefully.

[HAMISH_MCTAVISH]

The £ vs the $ is like a minnow swimming against a great white shark.

Euroland (even though I think it will break up) doesn't have the great debt headache hanging over it.

UKplc is in deep shiiiit as Messr Sarcocky explained.

Give it a couple of months and what is left of the free (currency) markets will give their opinion.

B@llocks, eurozone politicians have a history of slamming us for local political gain and then doing exactly the same thing cause they are fecked worse.

Screw them.

GB is doing more or less the right thing ATM. (He should be cutting the public sector by 40% at least, which he wont cause he's a lefty loony, but borrowing and QE is exactly what the Tories would do, only on a bigger scale)

The Euro and Germanic/Franco centric policy will be the death of them all.

Works for me, as the UK will emerges stronger and victorious. Thus all the attacks from Euroland right now.

[spivT]

B@llocks, eurozone politicians have a history of slamming us for local political gain and then doing exactly the same thing cause they are fecked worse.

Screw them.

GB is doing more or less the right thing ATM. (He should be cutting the public sector by 40% at least, which he wont cause he's a lefty loony, but borrowing and QE is exactly what the Tories would do, only on a bigger scale)

The Euro and Germanic/Franco centric policy will be the death of them all.

Works for me, as the UK will emerges stronger and victorious. Thus all the attacks from Euroland right now.

You really are a dickwad aren't you, the UK's perceived wealth and success over the last 10 years has been a result of nulabours massive expansion of the public sector....note i said 'perceived' wealth, local govts. and public sector bodies previously able to provide the job security and consistent wage increases that the private sector in large parts cannot.

Your idea of gutting and fillleting the public sector is empty rhetoric, so-called business transformation schemes provide nothing of the efficiencies and cost savings that you and your narrow minded politics believes them to be able to achieve. You cannot in one breath hail GB as economic dynamo and then decry him as a lefty loony......that is nonsensical. And your 'it will work, it will work' jumping up and down is nonsense rhetoric.

Infact i'm starting to believe that it's you whos the one who lives under the bridge and not Sibley. Sibley atleast is clear in his views, you are muddled and all over the place.

[Bloo Loo]

there is no scheme in place.

toxic debts are already swapped for BoE assets on lending terms.

Speculation like this is damaging.

And, the loss in value on many toxic assets is nowhere near their face value.

Even if Half the MBS in the asset defaults, that still means that Half, PLUS INTEREST will not. indeed , the BoE assets are already haircut further reducing the possible liability.

and nowhere in the world has 50% defaults on its mortgages.