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Banks Write Off Record Level Of Corporate Debts

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8887631/Banks-write-off-record-level-of-corporate-debts.html

In the three months to June, "write-offs of loans to non-financial corporations" almost tripled to £2.94bn, according to the Bank of England.

The only time the level of losses had ever come close was in the fourth quarter of 2009, as Britain was emerging from recession, when write-offs were £2.5bn.

The sudden increase in loan losses was at odds with what was then a period of relatively benign economic conditions.

And this is before the 2nd recession begins....

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I love this misuse of figures.

The write-offs are contributing to a decline in household debt. Total household debt has dropped by £8bn to £1.45 trillion in the past year, roughly in line with the amount of personal debt lenders have cancelled.

£1,45 trillion = £1,450 billion (+- 5 billion)

so a drop of just £8bn can still mean £1.45 trillion. Hardly worth mentioning. But they do. They say it dropped to £1.45 trillion, perhaps from £1.45 trillion .... wtf. You get the idea.

And they mix up household debt with corporate debt throughout the article. The whole piece is confusing and meaningless. Take this example:

The rate of mortgage losses may be about to rise. Last week, Lloyds Banking Group revealed a four-fold increase in mortgage loan impairments for the nine months to September of £416m and that £38bn of loans are to borrowers who are in negative equity.

Do they mean commercial mortgages only? Or is it residential too?

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We left the depression? Maybe on paper but sure as heck not in real life. Real drop in take home, increased unemployment, increased inflation, countries about to fail. Leaving a recession infers a growth period.

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If banks are forced to lend more money to businesses the B of E think it will all be OK. They are going to be vigilant....

Bank's Haldane calls for easing of lending rules

The deleveraging risk is something the Bank takes very seriously. This, for me, is one of the risks we must be most vigilant about

http://uk.reuters.com/article/2011/11/14/uk-boe-haldane-idUKTRE7AD02720111114

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If banks are forced to lend more money to businesses the B of E think it will all be OK. They are going to be vigilant....

ah the old deleveraging fear....or what they really mean is the deflation of real assets if they stop the ponzi?

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So limited liability corporations can just have their debt written off and it is all part of the risk taking, red in blood and claw capitalism that makes the world great.

After all it is half the lenders fault as they had to assess the risk of these loans and got it wrong.

However lend to a country and if it can't afford to pay it back you get to put your man in charge and start slashing benefits and raising retirement ages. After all borrowers should always repay what they borrow - the idea of not doing so is terrible.

Have I got this right?

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I wonder if my bank would care to write of my loan?

That would be nice! :D

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  • 284 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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