Jump to content
House Price Crash Forum
Sign in to follow this  
Losing Faith

New Bankruptcy

Recommended Posts

Making bankruptcy easier is going to p!ss off creditors, not least banks.

How brave is that ?

According to some of the stuff i've learnt since reading posts on here isn't it the case that measures to take / restrict the monopoly of money from banks has resulted in a rather sticky end for the politician involved.

Maybe our leaders have more balls than sense.

Share this post


Link to post
Share on other sites
Making bankruptcy easier is going to p!ss off creditors, not least banks.

How brave is that ?

According to some of the stuff i've learnt since reading posts on here isn't it the case that measures to take / restrict the monopoly of money from banks has resulted in a rather sticky end for the politician involved.

Maybe our leaders have more balls than sense.

perhaps, but don't forget that a large proportion of the debt has been securitized and flogged off to "investors" - many of whom I believe to be foreign. Don't have any specific figures, but it seems very plausible that this aggressive lending could only happen if the lenders were able to sell on a large portion of the risk

Share this post


Link to post
Share on other sites
perhaps, but don't forget that a large proportion of the debt has been securitized and flogged off to "investors" - many of whom I believe to be foreign. Don't have any specific figures, but it seems very plausible that this aggressive lending could only happen if the lenders were able to sell on a large portion of the risk

yes the Mortgage Backed Securities market has been booming for the past few years.

Unfortunately I suspect they have passed the risk to the general public by selling the mortgage backed bonds to the country's biggest investor - pension funds, which are for the benefit of the general public of the UK. Result? Banks are not carrying the risk, and will not lose out massively.

The pensioners of the future lose out as the bonds become worthless and lower the value of pension pots. :(

Share this post


Link to post
Share on other sites
yes the Mortgage Backed Securities market has been booming for the past few years.

Unfortunately I suspect they have passed the risk to the general public by selling the mortgage backed bonds to the country's biggest investor - pension funds, which are for the benefit of the general public of the UK. Result? Banks are not carrying the risk, and will not lose out massively.

The pensioners of the future lose out as the bonds become worthless and lower the value of pension pots. :(

that wouldn't surprise me at all. Nevertheless, I have also been told (on here) that the bulk of the bonds were bought by Asians - specifically the Chinese. They are undoubtedly the creditors in other respects; they hold a lot of US govt debt, which seems less than "gilt edged" these days.

This could be the downfall of the Chinese in a way - not only will they get dragged down by any crisis over here, they are trying to compete with the West by aping the oil-based economy that we have employed for over 50yrs. Sadly for them, they have chosen to make their sprint just at the moment that that particular racetrack is being de-commissioned

if you get my nebulous drift :blink:

Share this post


Link to post
Share on other sites
perhaps, but don't forget that a large proportion of the debt has been securitized and flogged off to "investors" - many of whom I believe to be foreign. Don't have any specific figures, but it seems very plausible that this aggressive lending could only happen if the lenders were able to sell on a large portion of the risk

Indeed, they use instruments that pass the debt on, that's why Lloyds etc don't really care when they give hand out £25k to some witless chav, as long as the payment insurance is bundled up with the debt they're covered, that's their profit sorted.

They slice the debt up and package it up along with other similair risk grades, these contracts then get bought up much like reinsurance. I suppose foreign investors bite since the yields cannot be any worse than US Tresury Bonds and investors have been taking on silly risks in the bond markets in search of any sort of return, in the junk bond arena there are very high risk bonds out there seriously unbecoming of their low yields.

Share this post


Link to post
Share on other sites

haven't there been one or two cases where financial institutions have bought these bundles of debt and found out they're not quite as described? and then came back to the vendor demanding a stumping up of cash compensation.

As to the Asian buyers...once bitten twice shy I would think. Western banks screw them over and they're unlikely to be quite so forthcoming in the future. And western investments in China may be in for nationalisation if the chinese feel ripped off.

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.

  • 301 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.