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F S A: Banks Back At Pre-Peak Irresponsible Lending

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8389388/Low-interest-rates-are-storing-up-trouble-for-lenders.html

Banks and Finance
Low interest rates 'are storing up trouble for lenders'
Low interest rates are storing up future problems for British banks as homeowners
revert to pre-crisis behaviour
, according to the Financial Services Authority.../
Research from Arbuthnot shows that the real UK base rates "should be" about 6pc, compared with a current level of around -4pc, based on their average level between 1993 and 2002 of 3.5 percentage points above RPI.

Hardly surprising. Unless the banksters feed on debt they do not make commissions and the top Banksters don't get big bonuses based o the amount of casino-like borrowing they have funded. Trying to reign in debt-creation is much like asking a starving dog not to eat the piece of steak that had just been dropped into its feeding bowl.

The problem grows and it will soon have to stop. But in the meantime the banksters have to keep momentum going and skim enough bonuses off the top before the second round of bailouts becomes necessary. I doubt they will be given as much freedom Post Bailout II.

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Notice how 'all mouth and no trousers' Turner is blaming 'homeowners' rather than himself and his bankster chums.

What's he done about it? Errrr....that would be nothing same as they did all along and will continue to do into the future.

According to the 'Taylor Rule' FED rates ought to have bottomed around -5% and be rising now to around -4% (Gavyn Davies has adjusted that by +2% to account for US QE).

Not sure what the equivalent numbers would throw up for UK rates, but 8-9% as implied by the article would clearly be insane. :blink:

http://blogs.ft.com/gavyndavies/2011/03/15/the-timing-of-the-feds-exit/

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Notice how 'all mouth and no trousers' Turner is blaming 'homeowners' rather than himself and his bankster chums.

What's he done about it? Errrr....that would be nothing same as they did all along and will continue to do into the future.

According to the 'Taylor Rule' FED rates ought to have bottomed around -5% and be rising now to around -4% (Gavyn Davies has adjusted that by +2% to account for US QE).

Not sure what the equivalent numbers would throw up for UK rates, but 8-9% as implied by the article would clearly be insane. :blink:

http://blogs.ft.com/...-the-feds-exit/

Yeah, odd that the regulator blames the third party making the request, rather than the entity he is supposed to be controlling...

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Yeah, odd that the regulator blames the third party making the request, rather than the entity he is supposed to be controlling...

The bankster cartel and their puppets in government are quite brazen now in their statements: its the borrowers fault.

Regulation is a myth and bailout 2 is probably a done deal as the banksters know they are too big to fail. However, a mega HPC might cause enough damage to the cartel that the government will be persuaded to actually introduce regulations and break up the top banking families to prevent them from weilding the power that they currently enjoy.

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Hardly surprising. The Sheeple are fed constant tripe from TPTB and media with regards to house prices, and most things for that matter.

They rode the one of the biggest booms we've ever seen, averted the crash we should have had, wrecked the currency in doing so, put interest rates at ridiculous levels, and now are bitching about the outcome. Once you put the camels nose in the tent...

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This is quality bearfood.

I suppose this can be seen in the BoE monthly figures for 'other' ie MEW, it's disappearing as people's equity does likewise.

The market is aligning itself for a major disaster, despite all the hot air about responsible lending. It's going to get messy pretty soon.

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The bankster cartel and their puppets in government are quite brazen now in their statements: its the borrowers fault.

Regulation is a myth and bailout 2 is probably a done deal as the banksters know they are too big to fail. However, a mega HPC might cause enough damage to the cartel that the government will be persuaded to actually introduce regulations and break up the top banking families to prevent them from weilding the power that they currently enjoy.

I wonder. I don't think the public would wear a second bailout and it would be very difficult politically so I don't think it is a done deal personally. However, like you I think regulation is largely ineffective and I don't see much prospect of any change here under current circumstances.

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According to the 'Taylor Rule' FED rates ought to have bottomed around -5% and be rising now to around -4% (Gavyn Davies has adjusted that by +2% to account for US

Let us start with the basic Taylor Rule. Using data from 1988-2008, the rule states that the Fed will set interest rates such that they are equal to a constant of 2.1 per cent, plus 1.5 times the core inflation rate minus 1.8 times the cyclical unemployment rate. This may seem somewhat arcane, but it is close to what most economists have estimated from past data and it does have the virtue of being a direct estimate of the revealed past behaviour of the FOMC.

Arcane - it's a joke!

The best thing is they get to make the numbers up in the first place.

Gavyn Davies - wasn't he one of Gordons closest economic chums - things haven't turned out well really have they?

But it's good some people are still listening - good for Gavyn anyway.

Wasn't his wife Gordons press secretary as well!!

Good to know just who and what we are talking about!

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Notice how 'all mouth and no trousers' Turner is blaming 'homeowners' rather than himself and his bankster chums.

What's he done about it? Errrr....that would be nothing same as they did all along and will continue to do into the future.

According to the 'Taylor Rule' FED rates ought to have bottomed around -5% and be rising now to around -4% (Gavyn Davies has adjusted that by +2% to account for US QE).

Not sure what the equivalent numbers would throw up for UK rates, but 8-9% as implied by the article would clearly be insane. :blink:

http://blogs.ft.com/gavyndavies/2011/03/15/the-timing-of-the-feds-exit/

As well as being our top financial "regulator" 'all mouth and no trousers' is also on the court of the Bank of England

http://www.bankofengland.co.uk/about/people/court.htm

Edited by Redhat Sly

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As well as being our top financial "regulator" 'all mouth and no trousers' is also on the court of the Bank of England

http://www.bankofeng...eople/court.htm

:lol::ph34r:

That explains the no trousers.

It's like a weird real life version of Godfather III. The word 'cartel' doesn't even begin to do justice to what the 'Court' gets up to. It would be much simpler to just roll with it..........

Edit: It needs a top quality investigative journo to do a mutlipart series on the Court of the Bank of England, the members, their history and the relationships to the banks they control. how about it Paul Mason if you're reading?

Edited by Red Karma

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:lol::ph34r:

That explains the no trousers.

It's like a weird real life version of Godfather III. The word 'cartel' doesn't even begin to do justice to what the 'Court' gets up to. It would be much simpler to just roll with it..........

Edit: It needs a top quality investigative journo to do a mutlipart series on the Court of the Bank of England, the members, their history and the relationships to the banks they control. how about it Paul Mason if you're reading?

Can the investigative journo also look into this one?:

Following his appointment as Chief Executive of Lloyds Banking Group with effect from 1 March 2011, it has been mutually agreed by Mr Horta-Osório and the Court of the Bank of England that, because of possible conflicts of interest, it would be inappropriate for him to remain as a Non-executive Director of the Bank of England from that date. He will therefore cease to be a Non-executive Director of the Bank on 28 February 2011.

Sir David Lees, Chairman of the Court of the Bank, said, “António Horta-Osório has contributed strongly to the workings of the Court of the Bank of England since his appointment on 1 June 2009. I would like to take this opportunity on behalf of his colleagues and myself of thanking him for his considerable efforts and wishing him every success in his new role.”

Mr Horta-Osório said, “It was an honour to be appointed to the Court of the Bank of England. I have been privileged to work with such a high-calibre group of colleagues and to be able to contribute to the significant work done by the Court. During this time, I have been very impressed by the culture of the Bank’s different teams, their dedication, hard work, professionalism and strong ethics.”

Note for Editors

Appointments of non-executive directors to the Court of the Bank of England are made by Her Majesty the Queen on the advice of the Prime Minister and the Chancellor of the Exchequer.

http://www.bankofengland.co.uk/publications/news/2010/086.htm

How come Lady (Susan) Rice, CBE Managing Director of Lloyds Banking Group Scotland is still on the court if it presented a conflict of interest for Osorio?

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Can the investigative journo also look into this one?:

How come Lady (Susan) Rice, CBE Managing Director of Lloyds Banking Group Scotland is still on the court if it presented a conflict of interest for Osorio?

And how come he was on it already ? Was he not in charge of Santander ? And, unless I have missed something, don't they have a ******ing HUGE UK Banking operation....

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This one as well

Kate Barker, a former member of the Bank of England's monetary policy committee, is to join the board of Taylor Wimpey.

Barker, who served on the MPC from 2001 to 2010 and was a housing advisor to the Government, will join the housebuilder as a non-executive director in April.

She is expected to earn £60,000 a year in the part-time role — just the latest she has taken up since she left Threadneedle Street.

Barker is a non-executive director of Electra Private Equity and Yorkshire Building Society as well as a senior advisor to investment bank Credit Suisse.

She will stand down from her board position at the Homes and Communities Agency before joining Taylor Wimpey

http://www.thisismoney.co.uk/markets/article.html?in_article_id=522355&in_page_id=3

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:lol::ph34r:

That explains the no trousers.

It's like a weird real life version of Godfather III. The word 'cartel' doesn't even begin to do justice to what the 'Court' gets up to. It would be much simpler to just roll with it..........

Edit: It needs a top quality investigative journo to do a mutlipart series on the Court of the Bank of England, the members, their history and the relationships to the banks they control. how about it Paul Mason if you're reading?

They've made such a hash of everything even the government could have done a better job than the Cartel of the (discredited) BoE. The job should be taken away from them.

At least when the government did it they were only trying to buy votes, ingratiate a job after politics and trouser some expenses and suchlike. Small change comparatively - of course they made a hash of things as well but as nothing compared to the hash the Cartel of the BoE have got the country into.

Edited by billybong

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Perhaps the investigative journo could find out who the person is in the Treasury who is actually in control of UK economic policy? A person obviously very closely tied to banks. Our politicians are puppets that this person has on strings.

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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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