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Cost Of Borrowing To Be Permanently Higher

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Gettting trailed on radio 4 Today programme. Interview at 8:10 this morning with the head of the FSA - where he apparently says costs of borrowing to rise permanently, banks will no longer be able to securitise - will have to hold loans on their own books and get to know their customers

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Gettting trailed on radio 4 Today programme. Interview at 8:10 this morning with the head of the FSA - where he apparently says costs of borrowing to rise permanently, banks will no longer be able to securitise - will have to hold loans on their own books and get to know their customers

Marvellous, the debtor is brought onto a more even surface with the saver. About time.

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What I found breathtaking (in fact I nearly crashed my car) was Angela Knight's claim in the follow-up interview that cheap credit had helped people with the housing market. I could have accepted it as VI spin, but much more worryingly she sounded like she actually believed that it had been the solution and not the problem.

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I did note that Angela Knight didn't dispute the claim that much of this situation has been caused by the greed of people in the banking industry. I liked the way the interviewer also got in the point about the taxpayer having to pick up the tab for greedy bankers at Northern Rock. The whole tone of both the Hector Sans and Angela Knight was rather contrite and both realised there has been a fundamental shift in the financial landscape. They know the game's up. They don't want to be held responsible. Too late for that I'm afraid. :angry:

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What I found breathtaking (in fact I nearly crashed my car) was Angela Knight's claim in the follow-up interview that cheap credit had helped people with the housing market. I could have accepted it as VI spin, but much more worryingly she sounded like she actually believed that it had been the solution and not the problem.

You beat me to it!

Her point was not even challenged - I thought the Today Programme was supposed to be respected?

Today, sometimes referred to as the Today programme to avoid ambiguity, is BBC Radio 4's long-running early morning news and current affairs programme, which is now broadcast from 6am to 9am from Monday to Friday and from 7am to 9am on Saturdays. It is also the most popular programme on Radio 4 and one of the BBC's most popular programmes across its radio networks.[1] It consists of regular news bulletins, serious but often confrontational political interviews and in-depth reports. It is generally considered to be the most influential news programme in Britain

Source

:blink:

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What I found breathtaking (in fact I nearly crashed my car) was Angela Knight's claim in the follow-up interview that cheap credit had helped people with the housing market. I could have accepted it as VI spin, but much more worryingly she sounded like she actually believed that it had been the solution and not the problem.

Apologies to any relatives/colleagues etc. of hers, and I'm sure that she's only doing her job - spinning for the banks - but I really wish that they wouldn't interview her. She really grates with me,

Peter.

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Guest X-QUORK

Good interviews I thought. The FSA guy was quite bearish about future lending and seemed reasonably chastened by their failure to intervene earlier during the NR crisis.

On the other hand, the woman from the Banking sector seemed in denial about her colleagues' responsibility for the current financial turmoil. Funny old thing that.

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What I found breathtaking (in fact I nearly crashed my car) was Angela Knight's claim in the follow-up interview that cheap credit had helped people with the housing market. I could have accepted it as VI spin, but much more worryingly she sounded like she actually believed that it had been the solution and not the problem.

erm...and expensive credit would be better? Come on chaps I'm no fan of Ms. Knight being interviewed, but some 'puuurspective pleeease' :) Interesting how 'we on 'ere' have been talking about a reversal to old school balance sheet lending ...well that was the turning point this morning, drawbridge must be almost up, just one or two 'plebs' stll left clinging on to the ropes and ramparts... :D

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questions:

1. will the FSA formalise this into regulation? how- wind down existing SIVs and not allow new? surely it cant all come back on balance sheet immediately.

2. have they discussed with other territories? presumably otherwise they have no control. [non regualted siv can lend to onshore bank providing capital to make regualted loans]

3. when?

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Have you ever been in that position when you wake up in the morning with a mouth that feels and tastes like the bottom of a parrot's cage and the top of your head hurts so much it feels like it wants to fall off?

It's called a nasty hangover. And what do you say? NEVER AGAIN.

Until another Brown comes along and promises another miracle based on credit binging........

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Have you ever been in that position when you wake up in the morning with a mouth that feels and tastes like the bottom of a parrot's cage and the top of your head hurts so much it feels like it wants to fall off?

It's called a nasty hangover. And what do you say? NEVER AGAIN.

Until another Brown comes along and promises another miracle based on credit binging........

Thats the nature of the cycle another 10+ Years and it will start again!!

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Thats the nature of the cycle another 10+ Years and it will start again!!

in ten years? phew, not so sure ...20? :blink: There was IMHO a blunt message there today, iirc they both stated that this type of lending - MBS etc., will never happen again NEVER :huh:

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in ten years? phew, not so sure ...20? :blink: There was IMHO a blunt message there today, iirc they both stated that this type of lending - MBS etc., will never happen again NEVER :huh:

I hope not its wrecked this country but you never know it could be like a movie horror series you think its all over then something comes back to life to haunt you!!!

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What I found breathtaking (in fact I nearly crashed my car) was Angela Knight's claim in the follow-up interview that cheap credit had helped people with the housing market. I could have accepted it as VI spin, but much more worryingly she sounded like she actually believed that it had been the solution and not the problem.

but now these people are going to face the pain as their huge debts become more difficult to service thanks to higher rates and inability to change lenders.

Its soooo over

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in ten years? phew, not so sure ...20? :blink: There was IMHO a blunt message there today, iirc they both stated that this type of lending - MBS etc., will never happen again NEVER :huh:

I agree. I suspect that the scale of the bust will be so monumental as to scar the collective psyche for at least a generation. Will we actually see profound changes to society as a result IMO, mass lusting for the petit bourgeois lifestyle of home ownership will disappear at the same rate it became reality in the first place.

... and that's the problem with the idea that cheap credit helps people get on the housing ladder. That it may well do, but it certainly does not help them complete their ascension to full home ownership.

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What I found breathtaking (in fact I nearly crashed my car) was Angela Knight's claim in the follow-up interview that cheap credit had helped people with the housing market. I could have accepted it as VI spin, but much more worryingly she sounded like she actually believed that it had been the solution and not the problem.

Yeh -- No mention of the LIAR LOAN scandal -- the "Self-Cert" scandal ----- They dare not utter the words "FRAUD", "MORTGAGE FRAUD", "LIAR LOANS," "PREDATORY LENDING," "LIE-TO-BUY,"...... It's TABOO to USE THESE WORDS --- i.e. Cut the shit and tell it as it REALLY IS..........

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Guest Bart of Darkness
and get to know their customers

Back to having an interview with the bank manager? Tea and biscuits and going over your finances with a fine tooth-comb? Bring it on.

Of course, never is a very final way of putting it. Give it a generation, maybe 2, and the crazy carousel will start up again.

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Guest X-QUORK

Maybe we should instigate a financial Rememberance Sunday.

The Queen and her Government could stand in sombre silence outside the Bank Of England and spend 2 minutes reflecting on Great Crash II and all those who lost everything because of stupidity and greed.

Everyone could wear a Northern Rock badge a la red poppies.

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Maybe we should instigate a financial Rememberance Sunday.

The Queen and her Government could stand in sombre silence outside the Bank Of England and spend 2 minutes reflecting on Great Crash II and all those who lost everything because of stupidity and greed.

Everyone could wear a Northern Rock badge a la red poppies.

In the mall will stand a grim, imposing monument to the folly.

The 'debt-is-daft' epitaph, standing 50 foot tall, with an outer casing made of hundreds of crushed Foxtons minis' entombing hundreds of thousands of pulped repo notices, shaped into a phallus form with a gordon brown head on it....

...Never again

:P

Edited by Saving For a Space Ship

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erm...and expensive credit would be better? Come on chaps I'm no fan of Ms. Knight being interviewed, but some 'puuurspective pleeease' :) Interesting how 'we on 'ere' have been talking about a reversal to old school balance sheet lending ...well that was the turning point this morning, drawbridge must be almost up, just one or two 'plebs' stll left clinging on to the ropes and ramparts... :D

Actually, yes. Money does have some kind of fair time-value, and recently it has been far below long-term sustainable levels especially when you allow for (real) inflation. And I partly interpret "cheap" as "easy", not just as a reference to cost. You do have a point 'though, in that moving to expensive credit now is clearly going to be a problem - it should have been more expensive all along.

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in ten years? phew, not so sure ...20? :blink: There was IMHO a blunt message there today, iirc they both stated that this type of lending - MBS etc., will never happen again NEVER :huh:

Yes! I heard them say twice that the new system for lending would now be in place 'FOREVER'. Just incase anyone out there thinks this will all be over by Christmas.

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  • 298 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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