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Mervyn King Attacked For 'failing' To Support Banks

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http://business.timesonline.co.uk/tol/busi...icle3599532.ece

“If we don't get through this crisis without the economy imploding, then there won't be another crisis, we'll be looking at something like a depression. Sort it now and worry about how you fix it afterwards.”

The banks caused the problems now they are crying Mervs not helping them enough and if it all goes tits up it will be Mervs fault. SOme bankers need rounding up and questioned about liar loans and other dodgy lending practices that lead to the crisis

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Predictable really, still these bailout ideas are being discussed as if all Merv needs to do is simply chill out a bit and cut the banks some slack- just this once- take on a few mortgages and presto! No more crunch. Absolutely no discussion of the consequences for the real economy at all, as if there were none. I mean, if its all so easy, why have private banking at all? Nevertheless I see some very big numbers leaving the BOE soon.

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http://business.timesonline.co.uk/tol/busi...icle3599532.ece

“If we don't get through this crisis without the economy imploding, then there won't be another crisis, we'll be looking at something like a depression. Sort it now and worry about how you fix it afterwards.”

The banks caused the problems now they are crying Mervs not helping them enough and if it all goes tits up it will be Mervs fault. SOme bankers need rounding up and questioned about liar loans and other dodgy lending practices that lead to the crisis

Translation - The Banks want to the British taxpayer to hand over their hard earned cash in return for all that crappy mortgage backed paper they are holding. The slight problem is that there is not enough public money to cover the huge liabilities that the financial institutions have generated. Even pledging the entire UK tax take of about £ 450 billion would not cover all the bets.

Edited by up2nogood

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This is unreal. These people really think they have a right to making billions for doing bugger all, and now that the party is over they want the government to steal from the public to find the continuance of their greed.

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I heard that interview yesterday. It was a real case of "if you don't save us, we're taking the rest of you down with us."

What was interesting was the way in which he derided any idea of thinking in the long term as "in the long term we're all dead" which indicates that he accepts that a bail out would in the long run be a bad thing.

Willelm Buiter was also on and made a very vigorous point that the Bank of England if it were to accept sub prime debt as collateral (which indicates that it's probably a done deal) then they should "aggressively" discount the debt to take account of default risk.

One thing that puzzles me and no one seems to raise this on the news is if the auctions at the current standard of collateral are being oversubscribed three or five times, then why does the BoE need to lower the collateral we accept? Surely the banks should be calling for more auctions first as that would be easier to get? Surely HBOS is able to bid with its current collateral?

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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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