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Government Denies Crisis Meeting Between Banks And Boe

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http://news.bbc.co.uk/1/hi/business/7306058.stm

Just as well there is no truth in the rumour. If it were true the stock market might panic.

Loved this bit..

Ralph Silva, a banking analyst at financial consultancy and research firm, Tower Group, told BBC Radio Five Live that those behind the false rumours "ought to be flogged".

"They're no worse than ordinary criminals, they're just basically stealing money from the market (that's my job, you bastards)," he said.

"They're putting out rumours, they're putting out lies, and they're taking advantage of the lies they put out, they're just criminals."

Edited by insidetrack

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The bosses of major UK banks will be meeting Bank of England governor Mervyn King later.

They are likely to tell Mr King that he needs to do more to reassure their creditors that the central bank will provide help if it is needed.

It comes a day after the Financial Services Authority launched an inquiry into whether false rumours were spread in the City to undermine bank shares.

The Bank of England reassured investors that the rumours were untrue.

'Strong confidence'

The banks are said to want Mr King to guarantee that if any UK lender suffered a cash shortage, it would provide whatever finance was needed.

There has been a series of completely unfounded rumours about UK financial institutions in the London market over the last few days, sometimes accompanied by short-selling

UK Financial Services Authority

Read Robert Peston's blog

Angela Knight, chief executive of the British Bankers Association, told the BBC's Today programme that she was confident the Bank would take action.

"The Bank of England is very keen to ensure that we have good strong confidence in our market - after all we've got good strong banks," she said.

"We're all facing as I say a particularly unusual situation in this credit crunch."

'No substance'

The banks' meeting with Mr King comes a day after the UK's financial watchdog, the Financial Services Authority (FSA), said it would "not tolerate" traders starting "false" rumours about firms to make cash from dealing in their shares.

WHAT IS SHORT-SELLING?

Trader borrows shares, then sells them

Repurchases shares later at a lower price

Trader returns shares to lender

Makes a profit on the difference

HBOS, whose shares fell as much as 17% at one stage on Wednesday, denied rumours of funding difficulties.

"There has been a series of rumours in the market today [Wednesday]," said a HBOS spokesman.

"A number of ill-founded and malicious rumours about the UK banking system in the markets.

"These rumours have not a shred of substance whatsoever. They are lies."

'Just criminals'

HBOS said it supported the "decisive action" of the FSA to investigate the alleged market abuse.

Those behind the rumours are no worse than ordinary criminals, they're just basically stealing money from the market

Banking analyst Ralph Silva

"There has been a series of completely unfounded rumours about UK financial institutions in the London market over the last few days, sometimes accompanied by short-selling," the FSA said in a statement.

In short-selling a trader borrows shares, sells them immediately and hopes to repurchase the shares in the future at a lower price.

The trader can then return them to the lender and make a profit on the difference.

Ralph Silva, a banking analyst at financial consultancy and research firm, Tower Group, told BBC Radio Five Live that those behind the false rumours "ought to be flogged".

"They're no worse than ordinary criminals, they're just basically stealing money from the market," he said.

"They're putting out rumours, they're putting out lies, and they're taking advantage of the lies they put out, they're just criminals."

The credit crunch started last summer following the revelation of multi-billion dollar bad debts in the US mortgage sector.

The knock-on impact has made banks around the world unwilling to lend to each other, making credit much harder to find and more expensive.

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Inflation is not 2.5%, it is around 6 to 10% anually.

Nope. The offical Government measure of inflation CPI (Consumer Price Index) is lower than the 'real world' RPI (all items Retail Price Index). Conveniently the CPI excludes real world costs like mortgage interest, council tax, buildings insurance, road fund licence, TV licence.

CPI was meant to be used to compare European economies (called HCIP), its use as a measure for domestic retail inflation is a distortion of the true situation.

Also RPI once published is never revised. Believe it or not the CPI can be revised post initial publication ! IMHO CPI is seriously manipulated to present a far lower inflation figure to the great unwashed public.

Onlyme was being sarcastic when he/she said 2.5%

Edited by Zadkiel

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Re making a profit from short selling.

The way to stop this is for banks etc not to lend out their shares to short sellers. But then they wouldn't make money off it then. Who is the greedy criminal again?

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http://news.bbc.co.uk/1/hi/business/7306058.stm

Just as well there is no truth in the rumour. If it were true the stock market might panic.

Loved this bit..

Ralph Silva, a banking analyst at financial consultancy and research firm, Tower Group, told BBC Radio Five Live that those behind the false rumours "ought to be flogged".

"They're no worse than ordinary criminals, they're just basically stealing money from the market (that's my job, you bastards)," he said.

"They're putting out rumours, they're putting out lies, and they're taking advantage of the lies they put out, they're just criminals."

There are quite a few HPI VIs that need birching for lying and false rumour mongering along the lines of: "there will be a plateau in prices in 2008" "the market will not go down due to too much demand" "house prices fell 0.3% last month (February)" "There is no subprime in the UK" "Our bank has plenty of money" Or Brown's 2 classics: "I will not allow house prices to get out of control" "No more boom and bust (I have eliminated the economic cycle)" And U-turn Ali's classic: "The miracle economy is well placed to avoid the troubles happening everywhere else (sic)"

Just how are such VI statements any different to the rumours that run the other way?

And another thing: there is never smoke without fire.

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  • 295 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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