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There's People On The Pitch, They Think Its All Over . . .

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More worrying is the explanation for why lenders are seizing the assets, which are US government agency AAA-rated residential mortgage-backed securities (RMBS).

Carlyle says: “negotiations deteriorated late on March 12 when, among other things, the pricing service utilized by certain lenders reported a drop in the value of RMBS collateral that is expected to result in additional margin calls”.

That statement will reverberate through global markets today.

Why?

Well, the point of Tuesday’s dramatic $200bn intervention by the Federal Reserve in mortgage-backed markets was to stabilise the price of US government agency AAA-rated residential mortgage-backed securities and – by implication – to encourage the big banks NOT to seize assets in the way they’ve been doing at Carlyle.

Right now, it’s not clear that the Fed’s medicine has worked.

In fact, it’s arguable that the banks’ seizure of Carlyle’s $20bn-odd in assets has actually been encouraged by the Fed's mortgages-for-Treasuries offer. Because the Fed’s new lending emergency lending facility allows the banks to swap mortgage-backed debt for Treasury Bills in a way that Carlyle could not do.

So it would be rational for the banks to take Carlyle’s assets and exchange them for top-quality, liquid US government bonds, rather than leave loans in place to a business, Carlyle, whose assets remained highly illiquid.

If that’s the case, there will be some very scared people in hedge-fund land today. Hedge funds that have borrowed from banks against the security of mortgage-backed debt could be about to see their assets sucked into the banking system and their businesses vanish.

It’s a process known as de-leveraging the global financial economy, yet another manifestation of the puncturing of the debt bubble.

It seems that the law of unintended consequences is busy at work again.

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Guest X-QUORK
Should we as a group book a survival training course with Ray Mears?

I think you'll find Hedge Fund managers have him booked out for the next two years.

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I think you'll find Hedge Fund managers have him booked out for the next two years.

Note the word "Hedge".

The truth was always there before our very eyes.

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Raquel has a better body today than many women in their late teens and 20s. No contest.

Anyhow, the BBC were just talking about Carlye. Declan likened their problems to someone who has bought lots of flats but then the bank suddenly asks for more equity, you can't pay it and you go bust. Good old Declan.

Alas, the numpty in the studio then asked him a silly question about what this had to do with the budget and Declan said it had nothing to do with the budget... but then they got sidelined on budget talk.

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Guest DissipatedYouthIsValuable
Should we as a group book a survival training course with Ray Mears?

If you look at Ray Mears it's obvious he doesn't live on nuts and berries.

And he gets choppered out to decent hotels after filming the shelter he's pretending to sleep in over night.

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Anyhow, the BBC were just talking about Carlye. Declan likened their problems to someone who has bought lots of flats but then the bank suddenly asks for more equity, you can't pay it and you go bust. Good old Declan.

But that doesn't make any sense. Someone who's bought loads of flats is rich! :P

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If you look at Ray Mears it's obvious he doesn't live on nuts and berries.
les03b.jpg

This guy is ten times better.

Edited by TDH270

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Raquel has a better body today than many women in their late teens and 20s. No contest.

Why do I get the impression that its been many a long year since you felt the delights of the firm body of a pretty young thing ? ;)

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If you look at Ray Mears it's obvious he doesn't live on nuts and berries.

And he gets choppered out to decent hotels after filming the shelter he's pretending to sleep in over night.

Its Bear Grills that gets choppered out, unless you have other information im not aware of.

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If you look at Ray Mears it's obvious he doesn't live on nuts and berries.

And he gets choppered out to decent hotels after filming the shelter he's pretending to sleep in over night.

You want a real adventurer like Russell Coight.

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  • 293 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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