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Realistbear

The Banks Are Now Turning Off The Credit Tap

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http://www.telegraph.co.uk/money/main.jhtm.../cnloans101.xml

Nervous City turns off high-risk loans tap

By Helen Power and Iain Dey
Last Updated: 1:02am BST 01/07/2007
City Bankers are reining in lending as the credit crunch bites with a moratorium on risky loans pioneered by private equity houses.
A number of London's most influential investment banks have temporarily stopped taking on the controversial covenant-lite loans criticised by Mervyn King, the Bank of England governor. They say investor appetite has dropped in the wake of the sub-prime lending crisis in America.

No greater trigger for the introduction of Great Crash 2 in all its mighty power and awesome destruction exists than the turning off of the credit tap. The miracle was born of loose credit. It will die of tight credit.

Looks like Merv is aping Gentle Ben with his too little too late warnings. He should have resigned in August 2005 when the other muppets out-voted him on the IR cut in the face of mounting inflation in houses prices which everyone knows spills over into the economy at large given housing's huge share of overall GDP.

Edited by Realistbear

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"There are the first signs that liquidity is beginning to dry up," said one major investor in syndicated bank loans.

Rumours abound about where the next problems will emerge. A number of German regional banks are thought to have been serious buyers of AAA and AA-rated US mortgage debt. There have also been suggestions that the Chinese central bank has a large exposure.

"A lot of the less intelligent money in the market has been among the biggest buyers of this stuff," said one major credit investor.

hmm, let's wait and see...

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http://www.telegraph.co.uk/money/main.jhtm.../cnloans101.xml

Nervous City turns off high-risk loans tap

By Helen Power and Iain Dey
Last Updated: 1:02am BST 01/07/2007
City Bankers are reining in lending as the credit crunch bites with a moratorium on risky loans pioneered by private equity houses.
A number of London's most influential investment banks have temporarily stopped taking on the controversial covenant-lite loans criticised by Mervyn King, the Bank of England governor. They say investor appetite has dropped in the wake of the sub-prime lending crisis in America.

No greater trigger for the introduction of Great Crash 2 in all its mighty power and awesome destruction exists that the turning off of the credit tap. The miracle was born of loose credit. It will die of tight credit.

Looks like Merv is aping Gentle Ben with his too little too late warnings. He should have resigned in August 2005 when the other muppets out-voted him on the IR cut in the face of mounting inflation in houses prices which everyone knows spills over into the economy at large given housing's huge share of overall GDP.

To be fair to Merv, he did at least make the right decision in Aug 2005. It should have been some of the other morons who resigned.

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so what will this mean. Higher rates, higher deposits, what|???

If I'm not mistaken I think this will more effect the highly leveraged private equity financing, rather than mortgages.

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Rumours abound about where the next problems will emerge. A number of German regional banks are thought to have been serious buyers of AAA and AA-rated US mortgage debt. There have also been suggestions that the Chinese central bank has a large exposure.

"A lot of the less intelligent money in the market has been among the biggest buyers of this stuff," said one major credit investor.

hmm, let's wait and see...

"German regional banks" - if they mean a body like the Sparkassen, then, yes, they are regional, but the whole organization is one of

the biggest retail banks in Germany. Therefore, any fallout might have a severe impact.

It's usually the unexpected that hits markets the worst. So, if suddenly a problem arose in the Eurozone - banking crisis in Spain and

even in parts of Germany, that could become very interesting. Some money would flow into the US and the UK, but most likely, within

short, it would find its way back to Japan. Oh, oh.

Edited by Goldfinger

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Looks like Merv is aping Gentle Ben with his too little too late warnings. He should have resigned in August 2005 when the other muppets out-voted him on the IR cut in the face of mounting inflation in houses prices which everyone knows spills over into the economy at large given housing's huge share of overall GDP.

The deputy did just that, he was responsible for financial stability.

http://www.viploan.co.uk/article/Banking-1426.shtml

Posted on : Tue, 18 Oct 2005 05:45 GMT | Banking News

By : Rob Davis

Large resigns as Deputy Governor at BoE, Gieve to replace him

<< Home

LONDON - Bank of England Deputy Governor Sir Andrew Large will retire from the central bank in January next year, it was announced here today.

Sir Andrew announced his intentions to retire in a letter to Chancellor Gordon Brown in which he wrote, "When I accepted the appointment as deputy governor in 2002, I indicated to you that I might not wish to serve a full term. I have now decided that I would like to retire from the Bank at the end of 2005, after almost 3-1/2 years, to return to the private sector."

City analysts are speculating that Large is moving to Lloyd's of London where another reshuffle is taking place as chief executive Nick Prettejohn has indicated that he is moving to the Prudential. Sir Andrew was viewed as a 'hawkish' member of the Monetary Policy Committee and had voted against the rate cut in August.

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To be fair to Merv, he did at least make the right decision in Aug 2005. It should have been some of the other morons who resigned.

it's about time that people knew this little cabal acts in concert.

merv is part of the plan.

think along the lines of arable crop rotation,when it comes to the global economy.

.....we've just been harvested.....so guess what,we have to lie fallow for a few years.Not good news for the BTL's who planted their seeds in exhausted pastures.

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Read this stuff:

S&P, Moody's Mask $200 Billion of Subprime Bond Risk (Update2)

By Mark Pittman

"une 29 (Bloomberg) -- Standard & Poor's, Moody's Investors Service and Fitch Ratings are masking burgeoning losses in the market for subprime mortgage bonds by failing to cut the credit ratings on about $200 billion of securities backed by home loans.

The highest default rates on home loans in a decade have reduced prices of some bonds backed by mortgages to people with poor or limited credit by more than 50 cents on the dollar and forced New York-based Bear Stearns Cos. to offer $3.2 billion to bail out a money-losing hedge fund. Almost 65 percent of the bonds in indexes that track subprime mortgage debt don't meet the ratings criteria in place when they were sold, according to data compiled by Bloomberg.

That may just be the beginning. Downgrades by S&P, Moody's and Fitch would force hundreds of investors to sell holdings, roiling the $800 billion market for securities backed by subprime mortgages and $1 trillion of collateralized debt obligations, the fastest growing part of the financial markets.

``You'll see massive losses from banks, insurance companies and pension managers,'' said Joshua Rosner, a managing director at investment research firm Graham Fisher & Co. in New York and co-author of a study last month that said S&P, Moody's and Fitch understate the risks of subprime mortgage bonds. ``The longer they wait, the worse it's going to be.''

Much more:

http://www.bloomberg.com/apps/news?pid=206...refer=worldwide

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well as this is coming to these shores, i think the advice is to get your pension very very safe.or you will be one of them moaning to the government in a few years about how little its worth and demanding action.

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Bump - good and incisive post

masons are just a bunch of utter twits.

by all means join a club and by all means bond together for the greater good.But the cultish symbolisim and religious undertones of masonary is pathetic in the extreme.

the architect of the universe and all that hocous pocus is beyond comprehension, luckly most masons just got through the rituals with a yawn and are onlyt there for the beer and companionship.Others get right into the religious fervour and you can actually see that look come over them that the cult followers all have.

Masonary was created for a select few and has now become for the masses which gives it no credence at all, whats the point of a secret society ...oops sorry a society of secrets if everyone knows the secrets. and when they do they realise there no real secrets at all just a load of spiritual mumbo jumbo.

You may be on the square looking at the all seeing eye but your still a misguided member of a cult.

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