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Bank Margins At Record Highs

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http://moneyfacts.co.uk/news/banking/bank-margins-at-record-levels/

Bank margins at record levels

Category: Banking

Date: 21/07/2010

In a week when Vince Cable has blasted the UK's banks for ripping off customers, research conducted by Moneyfacts.co.uk has found that bank margins are at record levels.

Lenders have made a concerted effort to cut the rates on fixed rate mortgages in an attempt to prise borrowers from record low variable deals.

Recent figures from Moneyfacts.co.uk showed that consumers are currently enjoying the lowest rates seen in seven years.

However, rates on unsecured lending continue to rise, with lenders taking record margins. Currently, the average rate of interest charged on personal loans is 12.6%, meaning the margin it sits over the base rate of interest is 12.1% - an all time high.

The same is true for credit cards which, charging an average interest rate of 18.8%, sit 18.3% above the Bank of England's measure.

The margin between authorised overdraft rates and the base rate is also at a record high, with borrowers paying an average rate of 14.24%.

"Despite the UK economy moving out of recession, a number of market indicators and sentiments remain subdued for unsecured lending," said Michelle Slade, spokesperson for Moneyfacts.co.uk.

"Customers successfully applying for unsecured credit are paying a heavy price as the increased risk is passed on through increased margins.

"Until banks and building societies repair their balance sheets, it's highly likely these increased margins are here to stay

You're gonna pay for those bankster f**kups, one way or the other folks... :(

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Just imagine the profit that you could make if you could lend to an economy its means of exchange, and that no-one in that economy could conduct business legally unless they used your special brand of money-numbers!

Suppose that you could lend trillions of these money-numbers into existence, charging on average x% p.a. to the borrowers while giving back only y% p.a. to the depositors of those very same money-numbers, and that you could choose x and y!

This is obviously so profitable for any such money-number issuers that surely no nation in its right mind would permit such a system.

Would it? :unsure:

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The banks were told to earn there way back to profit and to pay back the loans.

For some reason the public assumed that would be at the expense of magic pixies, rather than the banks customers.

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Of course this is utter bilge.

Hi Alan. I agree that it is most undesirable, but I don't suppose that's what you meant. :)

Note however that HMRC do effectively support the proposition.

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Hi Alan. I agree that it is most undesirable, but I don't suppose that's what you meant. :)

Note however that HMRC do effectively support the proposition.

A million AR ledgers says you are wrong.

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The banks were told to earn there way back to profit and to pay back the loans.

For some reason the public assumed that would be at the expense of magic pixies, rather than the banks customers.

I think that there is widespread and misguided reliance on the magic pixies.

Banks, governments and the population at large seem to think that the cost of the excesses of the past can be avoided without pain.

However, I tend to agree that the intervention of the magic pixies is the most likely way of meeting such hopes.

p-o-p

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Trade credit is denominated in the enforced money-numbers.

The postponement of settlement is irrelevant.

Trade credit is denominated in whatever you agree to denominate it in.

AUD GBP USD EUR...pigs blood ....virgins. You name it.

Yes, you can even agree to exclude any legal tender from the contract.

Edited by Alan B'Stard MP

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Trade credit is denominated in whatever you agree to denominate it in.

AUD GBP USD EUR...pigs blood ....virgins. You name it.

Yes, you can even agree to exclude any legal tender from the contract.

Tax law enforces the (eventual) use of legal tender, effectively imposing the use of the banks' (costly) promises of legal tender.

However large scale commercial commodity bartering is reportedly on the increase, so there is tension building.

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Trade credit is denominated in whatever you agree to denominate it in.

AUD GBP USD EUR...pigs blood ....virgins. You name it.

Yes, you can even agree to exclude any legal tender from the contract.

What's your buy and sell rate on virgins versus GBP?

Do you do discounts for quantity?

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Tax law enforces the (eventual) use of legal tender, effectively imposing the use of the banks' (costly) promises of legal tender.

Yes - you are forced to forfeit some of your surplus. Somehow you choose to take an intellectual shortcut and say this means you are legally bound to use "money numbers". Wrong.

However large scale commercial commodity bartering is reportedly on the increase, so there is tension building.

I'm sure. If it works - use it.

Edited by Alan B'Stard MP

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Yes - you are forced to forfeit some of your surplus. Somehow you choose to take the intellectual shortcut and say this means you are legally bound to use "money numbers". Wrong.

HMRC demands payment in sterling, almost all of which they receive in bank-credit money numbers.

Try offering them pigs' blood.

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HMRC demands payment in sterling, almost all of which they receive in bank-credit money numbers.

Try offering them pigs' blood.

So.....swap some pigs blood on the open market.

The judiciary has directed HRMC to take property offered. Try it sometime - set a trend.

There are no legal tender laws in Scotland pertaining to anything but coinage. How do taxes get paid there?

Edited by Alan B'Stard MP

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There are no legal tender laws in Scotland pertaining to anything but coinage. How do taxes get paid there?

Same as in other places, with bank credit money-numbers.

Promises, promises.

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How many you got? I know a man in peckham who's on the lookout.

That makes two of us. I'm a buyer, not a seller. They must be near impossible to find in Peckham... Has he tried mail order?

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Same as in other places, with bank credit money-numbers.

Promises, promises.

And where is the legal bondage that qualifies this statement of yours?

and that no-one in that economy could conduct business legally unless they used your special brand of money-numbers

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That makes two of us. I'm a buyer, not a seller. They must be near impossible to find in Peckham... Has he tried mail order?

He's giving up I think. Talking about becoming a monk instead - bottling water from the local spring.

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And where is the legal bondage that qualifies this statement of yours?

The statement is part of the thought experiment in my OP, a hypothesis.

Scotland does not quite formally comply with this hypothesis, fair enough.

So try paying taxes on Scottish business in pigs' blood.

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The statement is part of the thought experiment in my OP, a hypothesis.

Scotland does not quite formally comply with this hypothesis, fair enough.

So try paying taxes on Scottish business in pigs' blood.

In Scotland you are obliged to take any thing reasonable in settlement.

This can include property. If the pigs blood has market value then it will be acceptable.

If not the judiciary will decide.

The judiciary apply those same criteria.

Very simple litmus test to your brazen throwaway statement:

if you do not fall into any tax levy profile because your turnover is not significant, first year of trading etc etc.... - are you still obliged legally to use "money numbers" to conduct business? Yes / No ?

Edited by Alan B'Stard MP

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Just imagine the profit that you could make if you could lend to an economy its means of exchange, and that no-one in that economy could conduct business legally unless they used your special brand of money-numbers!

Suppose that you could lend trillions of these money-numbers into existence, charging on average x% p.a. to the borrowers while giving back only y% p.a. to the depositors of those very same money-numbers, and that you could choose x and y!

This is obviously so profitable for any such money-number issuers that surely no nation in its right mind would permit such a system.

Would it? :unsure:

Yeh and still manage to go bust!

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  • 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% +
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