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Central Banks Offer Fresh £35bn Emergency Credit

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Can any company apply for the cheap emergency credit of taxpayers money, or is it just banks.

My mate Wayne has a double glazing company and could do with £25bn of emergency funding as its nearly time for the annual bonus.

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Is it not the case that the Bank of England is "The lender of last resort"

If so that would imply that any bank that has used them is in deep financial sh1t, and from what I gather that would account for nearly all UK Banks.

Surely the public have a right to know from the Bank of England, and the FSA which Banks need to use the method of last resort ?

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Surely the public have a right to know from the Bank of England, and the FSA which Banks need to use the method of last resort ?

AGREED! otherwise they get unsubstantiated rumours causing runs... ha!

Edited by chris c-t

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How about individuals? I'd like a bachelor pad in Monte Carlo, a big yacht, a Rolls Royce Phantom and enough spare cash to be able to hook myself Keira Knightley or someone similar. A relatively modest £100m should cover it. I'm 33 now and I'm no closer to my dream life than I was when I was 13, so I reckon it's starting to qualify as an emergency, therefore 'emergency funding' would be an accurate description of the cash I require. Where do I apply?

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AGREED! otherwise they get unsubstantiated rumours causing runs... ha!

The problem with secrecy is that while it is meant to protect banks from runs by hiding who has borrowed what, all it really does is add to the climate of uncertainty and fear, leading to more market volatility and an increased chance of a rumour starting off another bank run.

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How about individuals? I'd like a bachelor pad in Monte Carlo, a big yacht, a Rolls Royce Phantom and enough spare cash to be able to hook myself Keira Knightley or someone similar. A relatively modest £100m should cover it. I'm 33 now and I'm no closer to my dream life than I was when I was 13, so I reckon it's starting to qualify as an emergency, therefore 'emergency funding' would be an accurate description of the cash I require. Where do I apply?

In most instances that come before me I am unable to help, however so tragic is your story that I am going to offer to pay off your entire mortgage, pay for all your furniture, allow you to use the services of prostitutes at my expense, and if you ever marry allow your wife to travel first class and have all taxi fares for free.

Yes, I am going to make you an MP.

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How about individuals? I'd like a bachelor pad in Monte Carlo, a big yacht, a Rolls Royce Phantom and enough spare cash to be able to hook myself Keira Knightley or someone similar. A relatively modest £100m should cover it. I'm 33 now and I'm no closer to my dream life than I was when I was 13, so I reckon it's starting to qualify as an emergency, therefore 'emergency funding' would be an accurate description of the cash I require. Where do I apply?

This is classic bubble thinking. To begin with, a few people might be able to borrow enough money to buy a Rolls Royce, Keira Kinghtley etc. but this would rapidly drive up the price of Rolls Royces and Keira Knightleys meaning that pretty soon nobody would be able to afford them no matter how much money they borrowed. The only way out would be to let Rolls Royces and Keira Knightleys crash in price but if the government was determined to prevent this happening then we might get insane solutions like being able to buy half a Rolls Royce or a Keira Knightley and then a quarter and so on. People could start trading promises to buy Rolls Royces and Keira Knightleys driving up their price even further but eventually there is still no way out but for the whole thing to come crashing down.

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so tragic is your story that I am going to offer to pay off your entire mortgage

That would be lovely but I haven't got one 'cause I'm priced-out of the market. If you'd made me this offer a couple of years ago I could have taken advantage by quickly arranging myself a mortgage of a million or so, but these days they'll only let me have £55k!

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I thought it was us, the Uk taxpayers, that were the lenders of last resort.

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That would be lovely but I haven't got one 'cause I'm priced-out of the market. If you'd made me this offer a couple of years ago I could have taken advantage by quickly arranging myself a mortgage of a million or so, but these days they'll only let me have £55k!

I could get you a nighthood for that, or maybe you would prefer four passports and a guide dog that keeps sh1tting on my lounge floor ?

Edited by laurejon

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How can it count as "emergency" when they keep having to do it over and over again?

Ever had really, really bad diahorea?

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Ever had really, really bad diahorea?

Actually the liquidity crisis is a lack of liquid (constipation), the BOE/FED is frantically trying to force feed the UK/USA more water in an attempt to get things moving. We have had diarrhea running at a 'healthy' 14% flow PA for a couple of years and things have grinding up since 2007. The USA is being considerably more liberal with the water, and has recently resorted to laxatives. The question is will the extra liquid going in at the top (central banks) make things more liquid down below where we are, the uk population needs solid stream to buy houses/pay wages and taxes, but will the banks pass the constipation (credit crunch), or will the effects of drinking water for 6 months (taking laxatives) in an attempt to speed things up cause massive flood of money when the economy passes the congealed stuff...

Edited by moosetea

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  • 297 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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