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Fed And Bank Of England Defeated

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Hoarding by banks stokes fears on credit crisis

By Chris Giles in London and James Politi in Washington

Published: March 25 2008 15:10 | Last updated: March 25 2008 20:36

Central banks’ efforts to ease strains in the money markets are failing to stop financial institutions from hoarding cash, stoking fears that the recent respite in equity markets may not signal the end of the credit crisis.

Banks’ borrowing costs – a sign of their willingness to lend to each other – in the US, eurozone and the UK rose again even after the Federal Reserve’s unprecedented activity in lending to retail and investment banks against weaker than usual collateral and similar action in Europe.

See FT.com for more info

Time to hoist up the White Flag Merv and Ben?

Edited by gruffydd

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Why the caution, surely there's some new financial instrument a wizz kid can think up? How about something like Collaterized Moneterized Renewal Bonds - CMRBs. Why not?

Edited by gruffydd

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I thought that the new 'Collateralised Repo Asset Protection' bonds were supposed to solve all these problems.

Do keep up. The BOE is issuing Collateralised (non-collateral heavy) Non Repayable Economy Saviour Bonds as fast as they can.

They work like this.

"Can we have a bail out?"

"'Course you can lad."

"How much can we have?"

"How much do you need?"

"Not sure, bit hard to own up to."

"'Nuff said, 20 do you for now?"



"Great, that will do us for a while. What security do you want?"

"What have you got?"

"Difficult to say to be honest"

"Well give us an IOU then. You're good for the money?"

"Oh, of course, temporary problem, markets frozen, you know ..."

"Say no more lad, here's your 20 billion. Don't spend it all at once."

"No worries there guvnor, we won't be spending, or lending, any of it"

"Good lad"

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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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