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South Lorne

Nobel Prize Winner Could Teach Osborne?

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In the Times Money Section Sunday this is the chap who was surpised that securitisation went belly up.

He also bought a flat in Cyprus for investment in what appeared to be 'off plan' in 2006 and sold in 2008 for a 25% loss. When asked what is best pension or property he opted for pension because his is a final salary pension from the LSE. (i.e. the taxpayer)

Are these the traits of a Noble Prize Winner or even a lecturer at LSE?........... :lol:

Chancellor 'exaggerated sovereign risk' says Nobel laureate

http://www.independent.co.uk/news/uk/politics/chancellor-exaggerated-sovereign-risk-says-nobel-laureate-2115271.html

Edited by South Lorne

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He also bought a flat in Cyprus for investment in what appeared to be 'off plan' in 2006 and sold in 2008 for a 25% loss. When asked what is best pension or property he opted for pension because his is final salary pension is from the LSE. (i.e. the taxpayer)

I understand the universities' superannuation scheme is well funded and not in need of taxpayer top-ups, AFAIK

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I understand the universities' superannuation scheme is well funded and not in need of taxpayer top-ups, AFAIK

...he stated his most lucrative work was with Lehmans between '96 and 99 when he was paid £50,000 pa for working Monday afternoons while at his main job at the LSE....it was in the same answer he stated "there was no sense that the securitisation of mortgage debt would become such a big problem back then"....it was from 2000 it accelerated .... :rolleyes:

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...he stated his most lucrative work was with Lehmans between '96 and 99 when he was paid £50,000 pa for working Monday afternoons while at his main job at the LSE....it was in the same answer he stated "there was no sense that the securitisation of mortgage debt would become such a big problem back then"....it was from 2000 it accelerated .... :rolleyes:

"securitisation of mortgage debt" works whilst you are selling to people who don't offer mortages as you are introducing new money into the system

But as soon as the banks started selling CDOs to other banks the system was bound to fail.

tim

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"securitisation of mortgage debt" works whilst you are selling to people who don't offer mortages as you are introducing new money into the system

But as soon as the banks started selling CDOs to other banks the system was bound to fail.

tim

Securitisation multiplied lenders capability to provide mortgages and it's growth between 1997 to 2007

created a house price boom in the UK never seen before. It was seen as a way of diluting and minimising

risk.... a mirage which would prove costly. With BTL as a product introduced to the UK in 1995 the swelling

OO demand combined with this new entrant drove the desire for increased market share by all lenders. It

was a volume business.

This was the boom. To Economists and Investment Bankers this looked like a sure thing. One problem

was the quality of risk assessment fell and when the inter bank market ceased in 2007 the tipping point had

been reached. Once the crash set-in the downward momentum created further bad debts and enhanced

risk on those considered viable at the beginning of the period.

Gordon Brown was demanding 30 year fixed mortgages using the capital market structures as late as

July 2007 and by October was struggling to save Northern Rock one of the more gung ho lenders with it's

SPVs.

Securitisation had proved to be the achilles heel of the finance industry.

Pissarides stated in the Times about securitisation of mortgage debt "I was very surprised when it collapsed".

If he had been reading this forum at the time he would not have been surprised. ...... :rolleyes:

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I understand the universities' superannuation scheme is well funded and not in need of taxpayer top-ups, AFAIK

sshhh, theyre all going private now.

Only a mattter of time before Private equity gets wind of this, nicks the pensions, loads them up with debt, and sells them back to the govt for twice the price.

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In the Times Money Section Sunday this is the chap who was surpised that securitisation went belly up.

He also bought a flat in Cyprus for investment in what appeared to be 'off plan' in 2006 and sold in 2008 for a 25% loss. When asked what is best pension or property he opted for pension because his is a final salary pension from the LSE. (i.e. the taxpayer)

Are these the traits of a Noble Prize Winner or even a lecturer at LSE?........... :lol:

http://www.independent.co.uk/news/uk/politics/chancellor-exaggerated-sovereign-risk-says-nobel-laureate-2115271.html

Some (most?) scientists Nobel prize winners are specialists in very narrow fields of research. It sounds like he is one of them.

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