Jump to content
House Price Crash Forum
Sign in to follow this  
Mikhail Liebenstein

Ratings Scam

Recommended Posts

http://gregpytel.blogspot.com/2010/06/prime-minister-sort-out-this-mess.html

The above link is taken from the blog, but I thought it deserved a thread as it seems a very plausible argument.

In essence the banks still hold lots of toxic rubbish and without public sector cuts, the bankers know there is no chance of getting another bailout. So they threaten the credit rating of the UK, to force the UK to free up more cash to lend to the banks.

The banking scam seems to have been well and truly rumbled.  Split up the UK banks and ban Goldman Sachs et al from the UK, arresting their executives as we go.

Share this post


Link to post
Share on other sites

http://gregpytel.blogspot.com/2010/06/prime-minister-sort-out-this-mess.html

The above link is taken from the blog, but I thought it deserved a thread as it seems a very plausible argument.

In essence the banks still hold lots of toxic rubbish and without public sector cuts, the bankers know there is no chance of getting another bailout. So they threaten the credit rating of the UK, to force the UK to free up more cash to lend to the banks.

The banking scam seems to have been well and truly rumbled.  Split up the UK banks and ban Goldman Sachs et al from the UK, arresting their executives as we go.

I absolutely agree with Pytel. I have said here before the scale of cuts to come is so large that governments will only hold social cohesion together if the banks, who in the public perception are the root cause of current economic problems, are also seen to

bear part of the pain: banks have become a state within a state, they have been making the rules and pulling the strings for years now. If capitalism and a reasonable life for ordinary people are to saved the banks have to be broken up and individuals within the banking and finance industry have to be prosecuted and taxed into bankruptcy. It does seem that once again governments are being manipulated/are complicit with a plan for spending cuts that is going to do nothing more than free up funds for more bank bailouts. I am very pessimistic that any government is ever going to challenge the criminality of the financial sector (actually I think they are complicit in it) and I find the future a very depressing place.

"Behind the ostensible government sits enthroned an invisible government owing no allegiance and acknowledging no responsibility to the people." Theodore Roosevelt

Share this post


Link to post
Share on other sites

Good post - I saw this and thought it should have its own thread.

Greg Pytel's analysis is staggering - that the ratings agencies a threatening to downgrade Govn ratings if they don't cut the deficit by a substantial amount. With the main aim of freeing up Govn cash for more bank bailouts. *!**?!!!$&!! Lost for words - if this is true its staggeringly cynical, if not criminal.

What we are about to see is thousands of job loses, no infrastructure spending, no investment and no growth for years to come - so that the banks can get their hands on more money to rebuild their balance sheets. Unfortunately it has the ring of truth about it. The whole of the Tories strategy is based on the premise that if they don't cut then the UK may get downrated by Fitch et al. But that means that in effect the ratings agencies are running the agenda! What right does a small, unelected, company have to influenece a national govnment - none.

If this is even remotely true then there should be an enquiry immediately! It amounts to the banking sector holding the Govn and electorate to ransom.

More squid anybody?

Share this post


Link to post
Share on other sites

Good post - I saw this and thought it should have its own thread.

Greg Pytel's analysis is staggering - that the ratings agencies a threatening to downgrade Govn ratings if they don't cut the deficit by a substantial amount. With the main aim of freeing up Govn cash for more bank bailouts. *!**?!!!$&!! Lost for words - if this is true its staggeringly cynical, if not criminal.

What we are about to see is thousands of job loses, no infrastructure spending, no investment and no growth for years to come - so that the banks can get their hands on more money to rebuild their balance sheets. Unfortunately it has the ring of truth about it. The whole of the Tories strategy is based on the premise that if they don't cut then the UK may get downrated by Fitch et al. But that means that in effect the ratings agencies are running the agenda! What right does a small, unelected, company have to influenece a national govnment - none.

If this is even remotely true then there should be an enquiry immediately! It amounts to the banking sector holding the Govn and electorate to ransom.

More squid anybody?

You're right. it is staggeringly cynical, probably criminal and it is probably what is going to happen. We are sooo F*cked.

Share this post


Link to post
Share on other sites

You're right. it is staggeringly cynical, probably criminal and it is probably what is going to happen. We are sooo F*cked.

And for some reason the UK is the nation most defensive of the banks. At least in the US the kill a bank from time to time.

Share this post


Link to post
Share on other sites

This is the worst bit - it's 5x worse than any of us could imagine previously!

We thought they were on £1/£11

They are actually on £1/£50!

Their managers and directors should be jailed immediately under the UK terrorist laws!

Mr Will Hutton observed on the Dispatches programme last Monday, the banks leverage is around 50.

I.e. around £50 of banks liabilities are covered by £1 real cash. Such leverage is unsustainable. A typical sustainable leverage is 5 – 10, 10 only in times of good market confidence.

Therefore between 80% - 90% of so called assets are simply toxic waste. The financial assets must be ring-fenced and the proper orderly process of write downs must be done. The aim of this process is to reduce the leverage to a sustainable level between 5 – 10.

No wonder Gordon et al has been propping up the housing market with everything they can throw at it.

The banks are bust if only a tiny minority of people default on their mortgages/loans at these leverage rates (which is why the banks are using PUBLIC FUNDS to buy up repos using covert 'shell' companies right at this moment!

Share this post


Link to post
Share on other sites

And for some reason the UK is the nation most defensive of the banks. At least in the US the kill a bank from time to time.

Its our golden goose (supposedly)

http://www.thisislondon.co.uk/standard/article-23845639-reform-must-not-kill-citys-golden-goose.do

More like an albatross IMO.

Tories wont kill the parasite because 'thatcher was right'

Labour wont because the ghost of Gordon (gushing at the innovation and dynamism of the city) lives on in Mandelsohn - i dont care what they say - the next Liebour leader, be it Bliars protege Miliband© or Snot Gobblers underling Balls will be hardcore Nulab. Unless by some freak they elect Diane Abbott, in which case it wont matter as if your one of the 90%+ of the white population she'll probably imprison you anyway.

Its all up to Vince.

Share this post


Link to post
Share on other sites

The days of "Ecom-engineering" or Fraud are coming to an end, bubble poped. The "City" will become a shadow of its former self............this MASSIVE reduction in income (Tax) together with the loss of Northsea oil/Gas exports & the need to import almost ALL our needs.

We are done, finished,cooked.

Mike

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.