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Ecb Close To Liquidity Deal For Troubled Banks - Source

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http://uk.reuters.com/article/2011/03/26/uk-ecb-liquidity-idUKTRE72P0P320110326

The European Central Bank is putting the finishing touches on a new facility that will give troubled euro zone banks liquidity over a longer time frame, throwing a lifeline to Ireland's ailing banks.

A euro zone central banking source told Reuters on Saturday that the plan will initially be "tailor made for Irish banks" and was likely to be announced next week to dovetail with the results of fresh stress tests on the country's lenders.

"This will replace the ELA (Emergency Liquidity Assistance) that is currently being provided by the Irish central bank," the source said speaking on the condition of anonymity.

"It will probably be similar to the SMP (ECB bond buy programme) in the sense there will be no fixed time frame on it; if you had put a 5- or 10-year deadline on it these people may have been tempted to ignore the problem until the end date was approaching."

He added that although it would initially be tailored for Irish banks, it would subsequently be available euro zone wide.

Clearly having a end date allows people to ignore the problem right up until the end, whereas having no time frame allows people to permanently ignore the problem. Genius.

It would appear that the Irish banks are zombies and will never be off ECB life support.

Still at least it's contained and there will be no time frame to sort this mess out. Have to hope the bond markets agree.

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Its better to do t his than to have atime limit, and have market panic each time the deadline approaches.. and then gets extended anyway. Its probably better to bail everyone out, and put in place stricter rules for next time, and rules for staying within the bailout scheme. In time inflation and economic growth will make the bailouts go away. Inflation will erode savings over the next decade.. on the other hand simply allowing the banks to fail would have wiped most people's savings out. So they are very lucky to still have their savings anyway.

An advantage of being in a nation state with 400 million people and 15 trillion USD in GDP.. is small countries like Ireland, Portugal and Greece don't make any difference to the whole. It can absorbed and the bailouts maybe add 0.2% to inflation in the Eurozone.

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There is no bond market, its where we are going, the end game is no bond market, QE to eternity now, issuence, purchase, its called DEBT CONTROL.....

Yes we are in a post bond market world I think. In most states the rate of printing now about equals the national bond issuance. This fear of vigilante bond investors selling because of inflation is sort of funny.

The bond 'market' now is mainly QE.. and a bit of sovereign funds moving money around for accounting purposes related to trade and investment.. and some like pension funds and banks buying some bonds to meet regulatory requirements. Like 0.1% of the bond market is actually some retail investor who is weighing the odds of inflation versus return.

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on the other hand simply allowing the banks to fail would have wiped most people's savings out. So they are very lucky to still have their savings anyway.

You are not a lover of anyone with savings i guess?

Inflation will erode savings over the next decade..

Not just savings but the effort you put in to get savings, a wage.......................Inflation rates <6%..............Wage inflation and Savings rates after tax around 2.5%....

Should wage inflation get up to 4%+, then the BoE base rate will go north, so will savings rates.......

The value of money/wages is rebalancing down to match a global value, those who took their equity from their house cannot moan, they had 200% monetry value increase in their cash through house appreciation/equity withdrawal. The poor barstewards i feel sorry for are the ones who have saved and saved through hard work squirrelling away the spare cash after tax while working. This money/savings is being eroded by speculative cost inflation..............

P.

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http://uk.reuters.com/article/2011/03/26/uk-ecb-liquidity-idUKTRE72P0P320110326

Clearly having a end date allows people to ignore the problem right up until the end, whereas having no time frame allows people to permanently ignore the problem. Genius.

It would appear that the Irish banks are zombies and will never be off ECB life support.

Still at least it's contained and there will be no time frame to sort this mess out. Have to hope the bond markets agree.

...all hoping hyperinflation will evaporate debts in due course.... :rolleyes:

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...all hoping hyperinflation will evaporate debts in due course.... :rolleyes:

Anyone with cash/pension pot savings, stagnant wage, etc etc is being f00ked right up the jacksy.................

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Anyone with cash/pension pot savings, stagnant wage, etc etc is being f00ked right up the jacksy.................

well yes, that is essential in rebalancing, you cant rebalance and unwind the debt cycle be it through inflation or deflation without the other side of the equation losing a large proportion of their false wealth, savings,assets,pensions accrued. What did you think would happen,magic?

Edited by Tamara De Lempicka

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Anyone with cash/pension pot savings, stagnant wage, etc etc is being f00ked right up the jacksy.................

..that is the fear ....only redeeming nature / feature is it will reduce costs in the West compared to the East where wages are rising....

Edited by South Lorne

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Wage inflation forecasts in the budget red book....

5.1 2013/14

5.3 2014/15

5.4 2015/16

I did not know this............If these figures ring true, well the BoE base rate will be around 5.5% at a guess, so they presume money supply will be hitting double figures come 2013...

If wage inflation in 2013 hits 5%, then we will have are housing collapse, because you can bet the mortgage rates will be north of 7%, and so will savings fixed rate bonds. In 2007, money supply was in double figures, wages were at 4.8% rising, you could fix for 2 years, your savings at 6.5%.....

In teresting, i can see this as the outcome

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I did not know this............If these figures ring true, well the BoE base rate will be around 5.5% at a guess, so they presume money supply will be hitting double figures come 2013...

If wage inflation in 2013 hits 5%, then we will have are housing collapse, because you can bet the mortgage rates will be north of 7%, and so will savings fixed rate bonds. In 2007, money supply was in double figures, wages were at 4.8% rising, you could fix for 2 years, your savings at 6.5%.....

In teresting, i can see this as the outcome

So you think....

Wage inflation + banks awash with liquidity to lend due to money returning to savings

=

House price crash

Am I right?

I can only see one problem with that - aren't those the conditions that led to HPI upto 2007?

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So you think....

Wage inflation + banks awash with liquidity to lend due to money returning to savings

=

House price crash

Am I right?

I can only see one problem with that - aren't those the conditions that led to HPI upto 2007?

Lending criteria changed, MBS gone, things tighter, otherwise no rebalancing?

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Lending criteria changed, MBS gone, things tighter, otherwise no rebalancing?

You are having me on aren't you? :)

Either that or I must be living in a parallel universe.

Lending is tighter for FTB so that BTL landlords/institutions can buy more properties to rent out at the bottom end. They don't want competition from FTBs. The First Buy scheme is to pretend to help a small portion of them as people are complaining. Lending has not changed for anyone with a house to sell. The FSA have not come out with any new lending criteria and don't intend to.

MBS has not gonel!! It went but is back. Even NR are at it again!!

http://www.mortgagefinancegazette.com/article/Leeds-reopens-sterling-Covered-Bond-market-230522.html

http://uk.reuters.com/article/2010/09/14/uk-rbs-idUKTRE68D19620100914

http://www.businessinsider.com/here-comes-a-wave-of-european-mbs-offerings-from-rbs-lloyds-and-sns-2010-3

http://www.guardian.co.uk/business/2011/mar/22/northern-rock-returns-securitisation-market

http://www.euroinvestor.co.uk/news/story.aspx?id=10946948&bw=20100318006064

"Rebalancing" is a word used to cover the fact that people in the UK are being robbed blind. Large firms are upping prices on everthing under the guise of "inflation" to cover salary excesses while the public are told to expect low wages and savers are being completely shafted.

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You are having me on aren't you? :)

Either that or I must be living in a parallel universe.

Lending is tighter for FTB so that BTL landlords/institutions can buy more properties to rent out at the bottom end. They don't want competition from FTBs. The First Buy scheme is to pretend to help a small portion of them as people are complaining. Lending has not changed for anyone with a house to sell. The FSA have not come out with any new lending criteria and don't intend to.

MBS has not gonel!! It went but is back. Even NR are at it again!!

http://www.mortgagefinancegazette.com/article/Leeds-reopens-sterling-Covered-Bond-market-230522.html

http://uk.reuters.com/article/2010/09/14/uk-rbs-idUKTRE68D19620100914

http://www.businessinsider.com/here-comes-a-wave-of-european-mbs-offerings-from-rbs-lloyds-and-sns-2010-3

http://www.guardian.co.uk/business/2011/mar/22/northern-rock-returns-securitisation-market

http://www.euroinvestor.co.uk/news/story.aspx?id=10946948&bw=20100318006064

"Rebalancing" is a word used to cover the fact that people in the UK are being robbed blind. Large firms are upping prices on everthing under the guise of "inflation" to cover salary excesses while the public are told to expect low wages and savers are being completely shafted.

Its why i wrote this.....................

I am not disagreeing with you, but i am talking average Joe, not a HPC veteran..........Out of a sample of 100 friends of mine, only a small percentage would know what you are talking about. Better to live debt free/mortgage free, work to live, not live to work, and be happy and content with life.

Once you hit forty, and if you are mortgage free, debt free, are working to live. you have your health, your friends, your family, time, what else do you need, you can only eat and drink so much, live in one house, sleep in one bed, drive one car etc?

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Its why i wrote this.....................

I am not disagreeing with you, but i am talking average Joe, not a HPC veteran..........Out of a sample of 100 friends of mine, only a small percentage would know what you are talking about. Better to live debt free/mortgage free, work to live, not live to work, and be happy and content with life.

Once you hit forty, and if you are mortgage free, debt free, are working to live. you have your health, your friends, your family, time, what else do you need, you can only eat and drink so much, live in one house, sleep in one bed, drive one car etc?

So you think....

People should forget about being ****ed over by the financial sector helped by our corrupt politicians and just enjoy life in their mortgage free homes which they can all have when they are 40?

The only problem I can see with that is Inequality is growing by the day, people will have to work longer for less, with 50 year mortgages and if they are lucky might become mortgage free just before they die.

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So you think....

People should forget about being ****ed over by the financial sector helped by our corrupt politicians and just enjoy life in their mortgage free homes which they can all have when they are 40?

The only problem I can see with that is Inequality is growing by the day, people will have to work longer for less, with 50 year mortgages and if they are lucky might become mortgage free just before they die.

Unless you are going to organise a round robin, then yes we are f00ked, you can demand higher wages, but hey, no one moaned when the music was playing, its only when we all start to realise, we were wrong, they ripped up the rule book and bought a HP. I see the liitle Japanese working longer for little or less, they set the precedent.

Wealth destruction hello, or fake wealth? The best scenario is want for little and expect less?

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You are not a lover of anyone with savings i guess?

About 90% of the population has essentially zero savings. So protecting depositors was not for them.

Not just savings but the effort you put in to get savings, a wage.......................Inflation rates <6%..............Wage inflation and Savings rates after tax around 2.5%....

Should wage inflation get up to 4%+, then the BoE base rate will go north, so will savings rates.......

The value of money/wages is rebalancing down to match a global value, those who took their equity from their house cannot moan, they had 200% monetry value increase in their cash through house appreciation/equity withdrawal. The poor barstewards i feel sorry for are the ones who have saved and saved through hard work squirrelling away the spare cash after tax while working. This money/savings is being eroded by speculative cost inflation..............

P.

Saved money is a claim on future production. If it turns out future production is a lot less than anticipated.. then the value of savings in real terms must decline.

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About 90% of the population has essentially zero savings. So protecting depositors was not for them.

Just shows you who are in control?

Saved money is a claim on future production. If it turns out future production is a lot less than anticipated.. then the value of savings in real terms must decline.

Savings in real terms must fall, as asset values fall, so will the median of exchange fall but not in line, its which ever falls fastest for longer?

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  • 285 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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