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LONDON (Reuters) - Central banks on both sides of the Atlantic are in talks about the feasibility of mass purchases of mortgage-backed securities in a bid to solve the global credit crisis, the Financial Times said on Saturday.

The newspaper, without citing sources, said the talks were at an early stage and part of a broader exchange on how to battle the turmoil in financial markets, which has continued despite the injection by central banks of billions of dollars of liquidity and cuts in interest rates.

The Bank of England appears to be most enthusiastic to explore the idea, which would involve the use of public money to shore up the market in a key financial instrument, the FT said.

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The Bank of England appears to be most enthusiastic to explore the idea, which would involve the use of public money to shore up the market in a key financial instrument, the FT said.

Hmmm, wonder why the BoE would be so keen? :unsure::o

I think we need a public debate about the future of banking in general and Investment Banking in particular before we start buying up their nasty toxic instruments.

Edited by redalert

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The answer is possibly northern rock.

As a nationalised bank it I believe is now owned by the people. Share holders took the profits and now will take the hit ( minimal Compensation ) the BOE should be told to whistle for the money its owed and offered £1 per month as a good gesture, although its our money anyway.

We the people now own the bank, deposit all our money there, offers good rates, value to money mortgages and of course all profit goes back into the public purse.

No more banks screwing us all.

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Hmmm, wonder why the BoE would be so keen? :unsure::o

I think we need a public debate about the future of banking in general and Investment Banking in particular before we start buying up their nasty toxic instruments.

I don't think we're going to get any say in the matter. Toxic financial waste will be bought up by the BOE in the hope of imposing an orderly wind-down of debt; or if not bought outright, accepted as collateral at face-value. However, if such a bail-out depends on a short-term housing market correction, they could end up in even more trouble. This "correction" could last for years.

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depends what the banks get in return

if they are swapping MBS for cash its a terrible idea and the lending and old times will return (they would have reinflated the bubble for a time)

if they swap it for goverment backed bonds ect then it might not be so bad

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if there is a mass bail out what are the chances that ( a ) Silly lending will resume and ( b ) house prices marching on

Edited by stu2006

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depends what the banks get in return

if they are swapping MBS for cash its a terrible idea and the lending and old times will return (they would have reinflated the bubble for a time)

if they swap it for goverment backed bonds ect then it might not be so bad

I think thye'll swap for cash but I don't think the bubble will be reinflated - not this time. Debt has reached its limits in terms of ability to service. Short of massive hikes in income, there will be no return to the old times.

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The answer is possibly northern rock.

As a nationalised bank it I believe is now owned by the people. Share holders took the profits and now will take the hit ( minimal Compensation ) the BOE should be told to whistle for the money its owed and offered £1 per month as a good gesture, although its our money anyway.

We the people now own the bank, deposit all our money there, offers good rates, value to money mortgages and of course all profit goes back into the public purse.

No more banks screwing us all.

I am thinking along the same lines. No more privately owned banks, any organisation able to lend money must be goverenment owned and completely transparent.

I feel however, that it's nothing more than a dream, the banking families would fight a war before they agreed to it.

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Guest The_Oldie
I am thinking along the same lines. No more privately owned banks, any organisation able to lend money must be goverenment owned and completely transparent.

I feel however, that it's nothing more than a dream, the banking families would fight a war before they agreed to it.

And have the government possess even more of your personal data? No thanks the nanny state is far too big as it is!

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And have the government possess even more of your personal data? No thanks the nanny state is far too big as it is!

I have nothing to hide so I have no problem if it bring the banking fertinity to its knees.

Henry Ford once said "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning".

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Henry Ford once said "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning".

Henry would know as he went bust a few times, before turning Ford into a success through mass production. Today Henry would have gone into BTL!

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Guest The_Oldie
I have nothing to hide so I have no problem if it bring the banking fertinity to its knees.

The 'I have nothing to hide' mentality, taken to it's logical conclusion, will lead to a 'return to nature' with the fat queen in the centre of the hive, controlling millions of identical worker drones who all have nothing to hide.

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The 'I have nothing to hide' mentality, taken to it's logical conclusion, will lead to a 'return to nature' with the fat queen in the centre of the hive, controlling millions of identical worker drones who all have nothing to hide.

Reply: Buzz-buzz-buzz-buzz-buzzbuzz-buzzbuzz-buzz-buzz-buzz

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Stop Press: Reuters website carries a statement from the Bank of England, issued today, that they will not buy up mortgage securities to bail out troubled banks and the rumour was untrue.

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There should be no bail out. Anything put in by the taxpayer should go back to the taxpayer when times are good. The slime of private moneylenders should be held back at gun point. Nationalise the banks if necessary and cancel interest payments on Government debt.

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The 'I have nothing to hide' mentality, taken to it's logical conclusion, will lead to a 'return to nature' with the fat queen in the centre of the hive, controlling millions of identical worker drones who all have nothing to hide.

the queen can look at my winkie any time she goddam pleases.

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The answer is possibly northern rock.

When NR was nationalised my immediate thought was that it would be a perfect conduit for the BoE to use to mop up all the MBS in the market as well as provide financing for 'social housing' by buying up surplus property that property developers and BTL investors (that get repossessed) can no longer refinance themselves.

I am sure that was not in the minds of Treasury and BoE when it was nationalised. However, it would be ever so convenenient to put it to those purposes now - would it not?

Remember the NR Foundation has a social charitable function and the NR coudl itself be turned into a quasi charitable social enterprise organisation providing low cost housing. Indeed, it could take over a number of struggling Housing Associations as well.

Remember - you read it here first!

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When NR was nationalised my immediate thought was that it would be a perfect conduit for the BoE to use to mop up all the MBS in the market as well as provide financing for 'social housing' by buying up surplus property that property developers and BTL investors (that get repossessed) can no longer refinance themselves.

I am sure that was not in the minds of Treasury and BoE when it was nationalised. However, it would be ever so convenenient to put it to those purposes now - would it not?

Remember the NR Foundation has a social charitable function and the NR coudl itself be turned into a quasi charitable social enterprise organisation providing low cost housing. Indeed, it could take over a number of struggling Housing Associations as well.

Remember - you read it here first!

Fannie ROCK what an idea.

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Clearly the penny has not dropped with the banks and the other financial institutions. This is an INSOLVENCY crisis and it is due to the fact that the US and UK public at large have borrowed more money than their income after taxes allows them to pay back. The debt is REAL and can not be wished away by passing the parcel back to the taxpayer. It is just crazy to think you can remove these liabilities by handing them back to the very people who can not afford to pay the debts in the first place. I would say this is a category error of an order of magnitude. The only way to remove the debt is to inflate them away and that involves doling out the cash to WAGE EARNERS who service the debts not the banks who hold them. Of course the knock on effect of such a general inflation would probably be as bad as letting some of the banks implode.

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As mortgage backed securities are backed by mortgages, the Treasury could find itself the country's biggest landlord if they default. Should keep Darling busy.

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I am thinking along the same lines. No more privately owned banks, any organisation able to lend money must be goverenment owned and completely transparent.

I feel however, that it's nothing more than a dream, the banking families would fight a war before they agreed to it.

A far better solution would be no government owned banks. That includes the Bank of England.

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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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