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Alistair darlings mole

Banks/badger And Repo's.

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Linky Darling?

I'm no Darling :Pbut 1/2 minute googling brought up this

On the topic, BoE just re-primed the pump to shower banks with another £50B from our future tax money, dontchaknow?

The rest is very simple: banks sell guilts to BoE, get loadsa cash, write 10x "pretend" mortgage and bid high on own repos creating a "sold for XYZ" record in LR database. Banks end up with properties on their balance sheets and pretend their newly minted "pretend" mortgages are performing. Whether the property is occupied or not and whether previous owner owes/pays any outstanding mortgage balance is not important in this scheme.

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I'm no Darling :Pbut 1/2 minute googling brought up this

On the topic, BoE just re-primed the pump to shower banks with another £50B from our future tax money, dontchaknow?

The rest is very simple: banks sell guilts to BoE, get loadsa cash, write 10x "pretend" mortgage and bid high on own repos creating a "sold for XYZ" record in LR database. Banks end up with properties on their balance sheets and pretend their newly minted "pretend" mortgages are performing. Whether the property is occupied or not and whether previous owner owes/pays any outstanding mortgage balance is not important in this scheme.

er no, the gilts are as good as cash for the lending machine. so no improvement there. Gilts are highly liquid and can be sold on very easily.

bit like CDOS were.

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er no, the gilts are as good as cash for the lending machine. so no improvement there. Gilts are highly liquid and can be sold on very easily.

bit like CDOS were.

Check out the price of guilts, I think they've risen today just like in spring and this means more cash for the same paper=>more "pretend" mortgages. Also auctioneers require 10% cash deposit and don't take guilts last time I checked.

Heads banks win, tails taxpayer loses :lol:

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