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cypher007

Britain's Banks: Too Big To Save?

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http://www.bbc.co.uk...oo_Big_to_Save/

just watched this on iplayer. it was the usual "we need to do xyz", and tell the public we are, "but in fact we'll do bugger all to the banks".

http://www.housepricecrash.co.uk/forum/index.php?showtopic=157939&st=75

:)

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http://www.bbc.co.uk/iplayer/episode/b00xwsl5/Britains_Banks_Too_Big_to_Save/

just watched this on iplayer. it was the usual "we need to do xyz", and tell the public we are, "but in fact we'll do bugger all to the banks".

Yea, we did this yesterday.

However, you think this was 'usual' broadcasting for the BBC, do you.

I beg to differ, I think peston did a brilliant job of cramming at least 5/6 fundamental issues, that have been discussed on this forum through various threads, at brain numbing length, into an 1 hour TV programme, at a level that could be understood.

You are part of this forum and therefore, if you pay attention, are informed of these issues, believe me, many are not.

Hopefully a percentage of those who are not members watched last night and learned something.

I know I'm the eternal optimist, but you never know ;)

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I know I'm the eternal optimist, but you never know ;)

I was less impressed.

I thought the explanation of derivatives to be 'plain wrong' (equating it to a -binary- bet on a horse... rather than as a contract for difference... The former can be risk managed by taking stakes from the punters - while this is not possible with financial derivatives as the maximum loss is unbounded... hence requiring (half the) punts to allocate infinite capital in order to eliminate risk for margin traded derivatives - entirely different to the situation at a bookmakers' where maximum risk is definable and finite.

I was also unhappy at the lack of a distinction drawn between cash, money and capital... with the distinction between the concepts blurred in order to suggest that our banks use fractional reserve - when, in fact, while the model used bears some resemblance - we do not operate a fractional reserve system because there is no minimum reserve.

Finally, I was unimpressed because the program ended not only having failed to answer the question it posed, but without having really explored the relevant issues. "Too big to fail" denands we show that the banks are not keeping sufficient records to establish if their assets are real or imaginary. We didn't even touch the question about whether we wanted to adopt a de facto fascist state. The hard questions weren't asked.

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I like the idea of just taking our money out of the banks and storing it in other ways.

Problem is people think it is safer in the bank!

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I like the idea of just taking our money out of the banks and storing it in other ways.

Problem is people think it is safer in the bank!

It is, in a banks safety deposit box. :P;)

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just watching this on iplayer,

I am so annoyed by Cable now, rather like Clegg, I just can't stand hearing his voice. What ever they say is irrelevant, it gives you absolutely no indication of what they think.

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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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