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Si1

Zombie Banks?

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Do the likes of LloydsTSB-HBOS, RBS-Natwest, count as a clear present danger to the UK economy thru' their sheer existence?

Will they be gradually be wiped out, or will the undeserving barstewards represent a drag on the economy for the next decade?

Edited by Si1

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Do the likes of LloydsTSB-HBOS, RBS-Natwest, count as a clear present danger to the UK economy thru' their sheer existence?

Will they be gradually be wiped out, or will the undeserving barstewards represent a drag on the economy for the next decade?

Or will they be wiped out in one big panic that can't be underwritten by a bankrupt government and broken taxpayer?

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Or will they be wiped out in one big panic that can't be underwritten by a bankrupt government and broken taxpayer?

Apparently the taxpayer can cover everything, especially when you start throwing in taxpayers who haven't even been born yet :unsure:

My faith in the whole house of cards isn't very strong at all, certainly not as strong as my faith in a shotgun plus ammo, a pile of gold and silver and 6 months of supplies.

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Or will they be wiped out in one big panic that can't be underwritten by a bankrupt government and broken taxpayer?

As long as the debts are denominated in Sterling, which the government/BoE can print, then any amount can be underwritten. It's just that it will have consequences for everyone, particularly those in credit.

Either we have a deflationary wipeout of the entire financial sector and Western governments OR those selfsame governments simply debase/inflate the debts away by printing money.

Not too hard to figure out which choice they will take.

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Do the likes of LloydsTSB-HBOS, RBS-Natwest, count as a clear present danger to the UK economy thru' their sheer existence?

Will they be gradually be wiped out, or will the undeserving barstewards represent a drag on the economy for the next decade?

From Bloomberg

Stephen Hester, chief executive officer of Royal Bank of Scotland Group Plc, said a sale of the government’s shareholding would be “positive” and “a symbol of Britain’s recovery.”

The money currently invested in RBS would be better spent on schools and hospitals, he told parliamentarians at the House of Commons Treasury Committee in London today. Hester, 49, said he has not discussed the government’s 83 percent shareholding in his company with Chancellor of the Exchequer George Osborne.

“There hasn’t been a specific agenda item that had any depth in terms of what the government should do with its shareholding in a meeting I’ve had with the chancellor,” Hester said. A sale “would be a symbol of Britain’s recovery and help with that, and a symbol of RBS’s recovery,” Hester said.

Hester is part way through a plan to shrink the Edinburgh- based bank by selling assets and cutting jobs, a process he described in May as the most complicated restructuring of any company in history. RBS received the biggest taxpayer-funded bailout in the world in 2008.

Lloyds Banking Group Plc Chief Executive Officer Eric Daniels said he had no opinion on when or whether the government should sell its 41 percent stake in his bank.

“That’s very much up to UKFI and the government” Daniels told parliamentarians at an earlier hearing at the House of Commons in London today. “The price currently is above the breakeven point for the government so the taxpayer is in the money.”

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As long as the debts are denominated in Sterling, which the government/BoE can print, then any amount can be underwritten. It's just that it will have consequences for everyone, particularly those in credit.

Either we have a deflationary wipeout of the entire financial sector and Western governments OR those selfsame governments simply debase/inflate the debts away by printing money.

Not too hard to figure out which choice they will take.

A deflationary wipeout is preferable as there is a clear bottom, an inflationary wipeout is worse as the ultimately deflationary collapse is many times worse than a simple deflationary collapse.

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  • 312 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%



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