sambino Posted March 27, 2008 Share Posted March 27, 2008 http://www.thisismoney.co.uk/investing-and...e_id=3&ct=5 The credit crunch is still biting hard as figures today reveal the Bank of England is lending only a fraction of what British banking groups are demanding. The auction of money in the Old Lady's weekly open market operation reveal that British banks were scrambling to borrow nearly £38bn this week. However, the Bank made only £13.6bn available, meaning that for the second week running the auction was around three times oversubscribed. Quote Link to comment Share on other sites More sharing options...
piece of paper Posted March 27, 2008 Share Posted March 27, 2008 Merv's just being mean. He should buy the mortgages as they have been asking him to. I have no problem with him buying their mortgages that are no more than 60% LTV so long as it is the actual mortgages, not some fancy invented instrument, and he pays no more than 5p in the pound. The banks won't suffer because this would be tier 1 capital, which they can lend out 20 times so they are vack where they started. He could then created mortgage bonds that can be sold through the Post Office in denominations of £5 upwards with a low maximum holding. The yield on the bonds would be near enough 100% pa so he might even encourage a bit of saving! I suspect that there are a few holes in this scheme!! p-o-p Quote Link to comment Share on other sites More sharing options...
nmarks Posted March 27, 2008 Share Posted March 27, 2008 Just to add fuel to the fire. Quote Link to comment Share on other sites More sharing options...
Methinkshe Posted March 27, 2008 Share Posted March 27, 2008 http://www.thisismoney.co.uk/investing-and...e_id=3&ct=5The credit crunch is still biting hard as figures today reveal the Bank of England is lending only a fraction of what British banking groups are demanding. The auction of money in the Old Lady's weekly open market operation reveal that British banks were scrambling to borrow nearly £38bn this week. However, the Bank made only £13.6bn available, meaning that for the second week running the auction was around three times oversubscribed. How very mean of the B o E. I, too, find myself in a difficult position where all my investments are going t.u. I demand to be rescued. I insist that the B o E should advance me cash in return for my crappy collateral (a stack of bad deals I've done over the past 10 years) otherwise I'm going to sulk AND GO BANKRUPT! Might not mean much to you at the moment, Merv, but if enough of us sulk and threaten to go bankrupt just like the clearing banks, you may have a bigger problem on your hands thabn you bargained for. Quote Link to comment Share on other sites More sharing options...
stew Posted March 27, 2008 Share Posted March 27, 2008 Just to add fuel to the fire. Bank of England Issues Credit Crunch Warning27/03/2008 Mervyn King, the governor of the Bank of England, has warned the Government that the credit crunch is having a greater impact on the country’s economy than was first suspected. A week after the Bank of England put an extra £5 billion into the money market, its governor told the Treasury select committee that the global financial crisis had "moved into a new and different phase". King said: "Across the world, confidence in financial markets is fragile … The heart of the problem is not in the real economy. It is in the financial sector itself." The governor has pledged further cash to try and restore confidence in the UK's financial system in the wake of the credit crunch but said the longer-term solution lies with the banks. It was a "matter of concern", King said, that the banks have so far failed to get the credit crunch under control. The governor went on to explain that the banks’ difficulties in securing funding against the assets they are holding have increased the uncertainty of their financial positions. Mr. King met with Chief Executives from HBOS, Lloyds TSB, HSBC, Royal Bank of Scotland and Barclays last Thursday and was understood to be alarmed by the sharp drop in the HBOS share price following inaccurate rumours that the leading mortgage bank was about to become the next Northern Rock. opps Quote Link to comment Share on other sites More sharing options...
muggle Posted March 27, 2008 Share Posted March 27, 2008 Things seems to be getting worse every week. Amazingly, I regularly talk to (supposedly educated) people who still deny there is a problem. Quote Link to comment Share on other sites More sharing options...
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