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Darling Calls For Help From G7


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'Chancellor Alistair Darling has described the credit squeeze as the "biggest economic shock" the world has seen since the 1930s Great Depression.'

Cripes!

Cutting interest rates should save the housing market though. Shouldn't it?

<_<

edit: I mean cutting ^_^

Edited by Badger
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'Chancellor Alistair Darling has described the credit squeeze as the "biggest economic shock" the world has seen since the 1930s Great Depression.'

Cripes!

Raising interest rates should save the housing market though. Shouldn't it?

<_<

Shall we assume that Darling and co now appreciate the seriousness of the situation?

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Guest mattsta1964
'Chancellor Alistair Darling has described the credit squeeze as the "biggest economic shock" the world has seen since the 1930s Great Depression.'

Cripes!

Raising interest rates should save the housing market though. Shouldn't it?

<_<

I just heard that on the BBC R4 9pm news

So................

It official on the Beeb

We are ABSOLUTELY FEKKED

I'm tempted to hand my keys over to Nationwide and get on a plane somewhere.........one way ticket

This is going to be AWFUL

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Guest Mr Parry
Shall we assume that Darling and co now appreciate the seriousness of the situation?

Can you put some more dirty pictures on my computer screen please bareback?

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I just heard that on the BBC R4 9pm news

So................

It official on the Beeb

We are ABSOLUTELY FEKKED

I'm tempted to hand my keys over to Nationwide and get on a plane somewhere.........one way ticket

This is going to be AWFUL

I concur.

This announcement means that it's a very short step now until serious shit hitting the fan at very high speed.

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Guest Mr Parry
I concur.

This announcement means that it's a very short step now until serious shit hitting the fan at very high speed.

He's got that "Awww, shheeeeddddtt" look on his face.

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Guest mattsta1964
I concur.

This announcement means that it's a very short step now until serious shit hitting the fan at very high speed.

I've been expecting a major shitstorm for the last couple years but hearing that on the BBC this evening sent a shiver down my spine

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Guest KingCharles1st

God- HOW LONG did it take them to do the sums.

I can't believe I'm reading this- if this isn't enough to get total clampdown on the economy- I don't know what is-

raise interest rates-

lower interest rates-

does it matter- that horse that bolted- I want to be riding on it's back now.

Darling is a little twit- and Gordon has probably washed his hands of the "chancellor" and darling is now going to need a bloody good lifebelt.

Next wednesday PMQ is going to be MEMORABLE...

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I hope the next time whats-his-name, the prime minister, comes out with his condescending mantra about how well off we are doing in the UK someone quotes thingy's statement about the credit squeeze being the "biggest economic shock" the world has seen since the 1930s Great Depression.

P.s. I swear that image of whats-his-names fake 'smile' on the american x factor the other night is going to haunt me until I die.

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Guardian Article

Crisis talks in bid to end global market turmoil

Finance ministers from the world's leading industrial nations held crisis talks with City and Wall Street bankers tonight as they sought to bring an end to nine months of turmoil that have gripped the global markets.

Despite a rearguard action by US and European banks to resist tighter regulation, the G7 made it clear that immediate action to improve supervision of financial markets would be followed by measures to curb the ability of institutions to lend recklessly in the future.

Finance ministers, central bank governors and regulators have concluded that one cause of the current crisis was that banks increased their lending in the boom years despite fears that a credit bubble was being inflated.

Top executives from Citigroup, Barclays, Deutsche Bank, Credit Suisse, Morgan Stanley and Lehman Brothers were among those invited to dinner at the US Treasury, but their pleas to be spared tighter control over their activities went unheeded.

Alistair Darling, the chancellor of the exchequer, said ahead of the dinner today that the G7 wanted to look at the capital adequacy rules governing banks. The outcome will be proposals to force banks to hold bigger capital reserves in periods of strong growth so that their ability to lend is curtailed.

"I very much hope that we will sign up to take immediate action", Darling said. "I think it is important to have an exchange of views with the banks, not only to get their assessment of what they think at the moment, but also to discuss some of the things that we might do to restore confidence."

"I see over the past few days that a number of banks have pleaded mea culpa. That's OK, but this isn't just an issue for a bank, or a financial institution and its shareholders. - it's a problem affecting people right around the world."

With UK mortgage lenders raising borrowing costs for some customers, Darling said there was "a huge public interest in making sure that we have the appropriate regulatory system".

The chancellor also called for a radical reform of the credit ratings agencies that have been blamed for failing to identify the risky nature of the mortgage-backed assets at the heart of the sub-prime crisis. Darling said that unless the credit ratings agencies reformed themselves to deal with questions of conflict of interest he would support statutory curbs on their activities.

Today's G7 meeting received a report from the Financial Stability Forum - a body made up of central banks and regulators - which called for an international college of supervisors to ensure better cross-border surveillance of big global banks and greater transparency from financial institutions about their balance sheets.

The G7 meeting has followed a period of turbulence on the foreign exchanges but co-ordinated action to put a floor under the ailing dollar was not considered at today's talks.

Sterling fell to a record low for a fourth straight day against the euro on prospects of more monetary easing from the Bank of England while the ECB is seen as keeping rates steady.

The pound has lost more than 9% against the euro this year as weak UK data has increased investor conviction that interest rates are set to fall further after the Bank of England cut rates to 5% yesterday.

Darling expressed confidence that the UK would remain resilient in the face of the slowdown in the housing market, and said he did not expect Britain to suffer a US-style property crash.

"Everybody recognises that the UK housing market is slowing down, but we have seen a 170% increase in prices over the past 10 years. Our position is different from the US - we don't have the problem of unsold houses because of an overhang of supply, and we have tighter regulation on mortgage selling than in the US."

The chancellor said the slowdown in prices - reflected in the 2.5% monthly fall recorded by the Halifax last month - was one reason he wanted to "do everything I can to restore confidence in the mortgage market so that first time buyers can get access to mortgages". He refused to rule out the government buying up mortgage-backed securities as a way of unfreezing credit markets, but said any proposal would have to be "realistic, proportionate and affordable".

Edited by Bearback
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Darling and Brown keep going on about this boom and how its risen by 170%. I dont work in finnce at all im just a FTB waiting for soemthing affordable but isn't this boom all borrowed money? If it is how on earth can we be in a safer position than th US

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Darling and Brown keep going on about this boom and how its risen by 170%. I dont work in finnce at all im just a FTB waiting for soemthing affordable but isn't this boom all borrowed money? If it is how on earth can we be in a safer position than th US

Darling and Brown's mantra was "we have economic stability, low inflation and low interest rates". It now appears that their new mantra is this 170% in 10 years stuff - hear them repeat it time and time again over the next 2 years.

Edited by Bearback
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Guest mattsta1964

A shitfest beyond comprehension

Thank god for Al Murray

I've just pissed myself laughing for last 1/2 hour.......

more than just light relief. That guy is a comedy genius

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Beeb Link

Japan urges credit crisis action

Mr Nukaga has written to other G7 members

Japan has joined the calls for co-ordinated action to tackle the credit crisis to be discussed at the G7 summit in Washington on Friday.

Japanese finance minister Fukushiro Nukaga has written to other G7 members calling for an international response.

His British counterpart, Alistair Darling, has also written a letter calling for co-ordinated action.

G7 leaders are expected to approve plans for greater openness and transparency from banks.

But some members would like to discuss further action, such as agreement on the use of public money to fund mortgages or bail-out banks.

"It is important to think about how best to stabilise the global economy and financial markets," Mr Nukaga said.

'Big bill'

Dominique Strauss-Kahn, head of the International Monetary Fund (IMF), has also called for co-ordinated action.

The IMF's former chief economist, Kenneth Rogoff, has suggested that could involve governments taking on mortgage debt.

"I think we're going to see some form of government intervention into the mortgage market where the government buys up a lot of mortgages directly or indirectly," he told the BBC.

"I think ultimately there's going to be a big bill for the taxpayer."

The G7 members are the US, Britain, France, Germany, Italy, Canada and Japan.

WTF!

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Guest mattsta1964
Beeb Link

WTF!

Yeah! Exactly

Bye Bye private property ownership

Wasn't that the idea all along? A socialist paradise.

I'm gonna queuing outside the bank on monday and booking a one way ticket out of here

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Yeah! Exactly

Bye Bye private property ownership

Wasn't that the idea all along? A socialist paradise.

I'm gonna queuing outside the bank on monday and booking a one way ticket out of here

:lol:

Where to?

This is going to end in blood. Best off buying an umbrella.

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