Jump to content
House Price Crash Forum

Osborne: " We Were On The Brink Of Bankruptcy "


Tired of Waiting
 Share

Recommended Posts

You would help your cause if you didn't confuse bank shareholders with bankers themselves. Yes, real bankers did lose virtually everything. Poor them. City bankers to receive £7bn bonuses this year.

And we're having to pay for it*. Read it and weap.

*Well, you might be, I don't live in the UK.

Thanks You made my point. The total amount of bonuses for the UK financial sector (thousands of employees) was £7bn. The Gov. deficit this year will be around £160bn.

Got it now? Finally?

Hopefully.

Besides, back to the credit bubble issue: it was the responsibility of the monetary authorities to control the aggregate (total) amount of credit in the economy.

Link to comment
Share on other sites

:lol:

Good post.

They really don't have many options.

Even Labour would have to do basically the same, if they had won the election.

BTW, in 5 years our debt to GDP will be around 100%. This will mean: no more borrowing, whoever wins it.

That is a way to put a cap gov. borrowing: max it out. :)

Debt = 100% GDP simply means that the debt is one year's worth of GDP, I thought. There is no reason why it shouldn't be two years' worth, i.e 200%, in theory at least. I think Japan's debt is about 200% GDP, or forecast to be so, as I read on another source today. Correct me if I'm wrong. :blink:
Link to comment
Share on other sites

Debt = 100% GDP simply means that the debt is one year's worth of GDP, I thought. There is no reason why it shouldn't be two years' worth, i.e 200%, in theory at least. I think Japan's debt is about 200% GDP, or forecast to be so, as I read on another source today. Correct me if I'm wrong. :blink:

The higher the debt to GDP, less confidence lenders have = higher interest they demand (bonds market). Same as with an individual.

In Japan the population has demonstrated a very high trust on their government, and saved/invested in bonds at very low interest rates. A very singular case. Nobody thinks that UK gov. bonds would be so lucky.

Besides, there is an ethical issue here: Should we pass this bill to the next generation? And with compounded interests?! Mean.

Link to comment
Share on other sites

Thanks You made my point. The total amount of bonuses for the UK financial sector (thousands of employees) was £7bn. The Gov. deficit this year will be around £160bn.

Got it now? Finally?

Hopefully.

Besides, back to the credit bubble issue: it was the responsibility of the monetary authorities to control the aggregate (total) amount of credit in the economy.

You're now comparing apples with oranges. Give it up.

Link to comment
Share on other sites

The higher the debt to GDP, less confidence lenders have = higher interest they demand (bonds market). Same as with an individual.

In Japan the population has demonstrated a very high trust on their government, and saved/invested in bonds at very low interest rates. A very singular case. Nobody thinks that UK gov. bonds would be so lucky.

Besides, there is an ethical issue here: Should we pass this bill to the next generation? And with compounded interests?! Mean.

I agree with you. I just got the impression that ToW thought that 100% GDP was the maximum the debt could be. Apologies to ToW if I misunderstood.
Link to comment
Share on other sites

Besides, back to the credit bubble issue: it was the responsibility of the monetary authorities to control the aggregate (total) amount of credit in the economy.

I don't think they could have. The credit bubble was partly driven by unregulated institutions using highly leveraged financial instruments. When TSHTF the phantom credit created had to be converted into real money. The real question is was the level of regulation correct and the simple answer is we know it wasn't. There was no way the total level of credit in the economy could have been centrally controlled with the regulation that was in place.

Link to comment
Share on other sites

So what did you mean by: "those most responsible for pushing the UK to the edge of the economic precipice it now teeters on?" ?

If you still think that the MOST responsible was not Gordon Brown, then FGS, WAKE UP DS !

And I am talking not only about over-spending, but the BUBBLE TOO!

.

Please explain how Gordon Brown caused the collapse of Lehman Brothers. The guy was a doughnut but he did not single handedly sell every CDO nor every dodgy mortgage nor, in fact, any of the things that caused the crash. Like a lot of other daft people he believed Blair.

The banks have bled the UK dry. But keep giving them your money and blaming Brown. They love every minute of it. Got your mortgage application in yet?

Link to comment
Share on other sites

The banks have bled the UK dry. But keep giving them your money and blaming Brown. They love every minute of it. Got your mortgage application in yet?

Indeed, the precedents for bailouts of hyper-leveraged institutions was already laid down. Take the Federal Reserve-sponsored bailout of 'Long-Term Capital Management' in '98, a hedge fund whose failure threatened to destabilise the financial sector a full 9 years before 2007. Lehman Bros helped bail them out :)

The banks already knew how governments would respond to over-leveraged institutions in difficulty. If they would bail out an unregulated shadow banking institution in that way then............

Link to comment
Share on other sites

I don't think they could have. The credit bubble was partly driven by unregulated institutions using highly leveraged financial instruments. When TSHTF the phantom credit created had to be converted into real money. The real question is was the level of regulation correct and the simple answer is we know it wasn't. There was no way the total level of credit in the economy could have been centrally controlled with the regulation that was in place.

(Sorry I can't write much now. I have to log off in a minute.)

Summary: Via base rate and mortgage regulation, restriction.

More info here: http://www.housepricecrash.co.uk/forum/index.php?showtopic=137438&view=findpost&p=2401345

Link to comment
Share on other sites

(Sorry I can't write much now. I have to log off in a minute.)

Summary: Via base rate and mortgage regulation, restriction.

More info here: http://www.housepricecrash.co.uk/forum/index.php?showtopic=137438&view=findpost&p=2401345

Control globally-focused unregulated financial instituations dealing all manner of highly leveraged financial instruments by adjusting the BoE base rate. I can see now why it's all Gordon's fault. If only he'd changed the BoE base rate. If only. He could have really saved the World. :lol::lol:

Edited by needsleep
Link to comment
Share on other sites

And how are you going to change the rules to stop this avoidance?

If you try and take money from these people they will work out a way to not pay it, even if that means not entering the UK at all and conducting their business by phone

tim

So all that stuff about how giving all the money to rich people would be good for everyone turns out to be bullshite?

I think most avoidence could be stopped if the political will were there- but it's easier to target benefit cheats and they have a lot less political clout.

Edited by wonderpup
Link to comment
Share on other sites

Oh what a load of BS from Osbourne. Let's go after the benefit cheats. What does that cost the nation? 5 billion, really?

What about the tax avoidance cheats? Lord Ashcroft? Sir Philip Green?

God, if we made a few of these dodgy fellows pay their fair share of tax, I suspect we could wipe out the deficit pretty easily.

I believe that Vodaphone just got a deal whereby they got off £6 billion in tax, i.e. slightly more than this entire 'fraud/mistake' witch-hunt, in one go.

Link to comment
Share on other sites

The higher the debt to GDP, less confidence lenders have = higher interest they demand (bonds market). Same as with an individual.

In Japan the population has demonstrated a very high trust on their government, and saved/invested in bonds at very low interest rates. A very singular case. Nobody thinks that UK gov. bonds would be so lucky.

Besides, there is an ethical issue here: Should we pass this bill to the next generation? And with compounded interests?! Mean.

Quick question: Why was the National Debt invented and what was the result?

Link to comment
Share on other sites

Control globally-focused unregulated financial instituations dealing all manner of highly leveraged financial instruments by adjusting the BoE base rate. I can see now why it's all Gordon's fault. If only he'd changed the BoE base rate. If only. He could have really saved the World. :lol::lol:

Yes, there was cheap credit available in the international market. But look below who "accepted the offer" the most:

The biggest credit bubble/GDP was the British. The biggest in absolute terms was America's. No other major economy took so much credit. Only a few small economies also took it, like Iceland and Ireland.

How? Mainstream monetary policy, over their national currencies, and domestic market. Basic economics really. Settled issue. To blame "international forces" was Brown spin. Sorry.

Look at the data:

debt-sovereign.png

Please read this post, critically, OK, but with an open mind. See the data and logic in it. LINK: http://www.housepricecrash.co.uk/forum/index.php?showtopic=137438&view=findpost&p=2401345

.

Edited by Tired of Waiting
Link to comment
Share on other sites

Please explain how Gordon Brown caused the collapse of Lehman Brothers. The guy was a doughnut but he did not single handedly sell every CDO nor every dodgy mortgage nor, in fact, any of the things that caused the crash. Like a lot of other daft people he believed Blair.

The banks have bled the UK dry. But keep giving them your money and blaming Brown. They love every minute of it. Got your mortgage application in yet?

International credit was available: http://www.housepricecrash.co.uk/forum/index.php?showtopic=152971&view=findpost&p=2751654

"Bankers": http://www.housepricecrash.co.uk/forum/index.php?showtopic=152971&view=findpost&p=2750773

Link to comment
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...
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • 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.