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interestrateripoff

Golden Rule Changes 'designed To Save Banks'

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http://www.telegraph.co.uk/money/main.jhtm...0/cnecon120.xml

The Treasury may be planning to raise the limit on public borrowing in an effort to give it "room for manoeuvre" for a potential rescue operation for the banking system, a leading expert has suggested.

Alistair Darling's review of the borrowing rules he inherited from Gordon Brown may have been influenced by plans under consideration for a rescue of struggling mortgage banks, according to Peter Spencer, economic adviser to the Ernst & Young Item Club.

It comes amid growing disquiet about the funding position of Britain's biggest mortgage lenders, with banking groups urging the Treasury or Bank of England to extend its mortgage support scheme to cover home loans issued since the start of the year.

So when the banks where coining it they blew the money and paid out huge salaries now the system is completely screwed the taxpayer can now come in and subsidise them all.

Will the govt be actively pursuing the assets of idiot bankers that did this?

Edit grammar.

Edited by interestrateripoff

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http://www.telegraph.co.uk/money/main.jhtm...0/cnecon120.xml

So when the banks where coining it they blew the money and paid out huge salaries now the system is completely screwed the taxpayer can now come in and subsidise them all.

Well the govt be actively pursuing the assets of idiot bankings that did this?

The question I want answering is who is going to lend the money to cover the public expenditure on failed banks? No doubt the banking system will be happy to step in and buy most of the bonds!

So the banking system goes crazy in the boom making loads of money, then when parts of the industry find themselves in trouble banks kindly lend the government a sizeable chunk of the money to bail them out, the taxpayer then pays interest on this loan in perpetuity.

Corrupt!

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Privatise the gains, socialise the losses. P*ss off electorate, hand over to other party to rinse and repeat for the next 10-15 years.

And so, this Labour government ends in the same manner as it's Conservative predecessor, with the public none the wiser, satisfied that they are making a "difference" with their 2010 Conservative vote, unaware that they are simply beginning the cycle anew.

Uk recovery and boom, 2010-2020, Uk recession in 2020-2025, guaranteed. Some of the older members on here must be very well acquainted with this little cycle of charades by now.

Edited by DementedTuna

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It pees me off that the bankers all had their noses in the trough during the good times and made a killing now because of their greed we are all suffering it makes me so mad :(

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This will be insanely inflationary. :blink:

not really, the Japs have been trying to spend their way to prosperity for a decade... they still screwed..

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What about the growing disquiet of taxpayers who didn't put their snouts in the trough and are now having to pay for more subsidised porkers in the banking system as well as the political system?

Will the next 10 years profits in the banking sector be dedicated to paying this back - like an IVA for the banking sector - take every penny you've got till you've paid it back? or a great big secured loan so that they can package up and consolidate their debts secured against their houses? Sounds like a very fine form of justice.

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What about the growing disquiet of taxpayers who didn't put their snouts in the trough and are now having to pay for more subsidised porkers in the banking system as well as the political system?

Will the next 10 years profits in the banking sector be dedicated to paying this back - like an IVA for the banking sector - take every penny you've got till you've paid it back? or a great big secured loan so that they can package up and consolidate their debts secured against their houses? Sounds like a very fine form of justice.

Sounds a very good idea. Obviously won't happen the City won't like that sort of responsibility far better to get the good old tax payer to foot the bill.

That sounds much too like the Rich taking responsibility for their actions. How could growth possible happen if the Rich where crippled with paying money back to the tax payer???

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not really, the Japs have been trying to spend their way to prosperity for a decade... they still screwed..

Yes, but their money supply (M2 +CD (certificates of deposit)) fell from around 13% in 1990 and after falling quickly has remained well under 5% for most of the time since. I think it was around 1.9% last time I looked a couple of months ago.

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Privatise the gains, socialise the losses. P*ss off electorate, hand over to other party to rinse and repeat for the next 10-15 years.

And so, this Labour government ends in the same manner as it's Conservative predecessor, with the public none the wiser, satisfied that they are making a "difference" with their 2010 Conservative vote, unaware that they are simply beginning the cycle anew.

Yes this is a simple message and yet so few people seem to get it even when all mp's are fidling the books and no one is able to do a dam thing about it.

Sure they point out other places where the system is corupt and yet never loook in the mirrow.

Time for a revolution as the system is way past repair and see if this space does not become full of people saying the same thing in a few years time.

Quick must go before i get arrested under the anti terrorist rules being past that allow goverment to get away with murder/treason and rich all at the same time.

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Totally and utterly pointless to have fiscal rules if you are going to break them because you cannot stick to them. I made it a new rule never to smoke again, unless i want a cigarette then i will change the rule to suit my need.

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Totally and utterly pointless to have fiscal rules if you are going to break them because you cannot stick to them. I made it a new rule never to smoke again, unless i want a cigarette then i will change the rule to suit my need.

Oh yeah, are these the same fiscal rules where the goalposts have been moved since their inception?

There NEVER have been any golden rules worth the name, so changing them again will mean as little as usual.

if they want to preserve some semblance of respect, all they need do is start a new fiscal cycle, only this time, we start at the debt stage, and end if "profit" and therefore balance, at some time in the future. What do they care when that future is, if ever?

Edited by Bloo Loo

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Oh yeah, are these the same fiscal rules where the goalposts have been moved since their inception?

There NEVER have been any golden rules worth the name, so changing them again will mean as little as usual.

if they want to preserve some semblance of respect, all they need do is start a new fiscal cycle, only this time, we start at the debt stage, and end if "profit" and therefore balance, at some time in the future. What do they care when that future is, if ever?

What they need to do is start again, but this time -£40bn is in fact 0 so what we have now is a new numbering system. This would then allow them run up more debt without it counting. Even better change the -£40bn to equal +£40bn then no accounting rules have been broken and everything is fine. Nothing is worth the paper it's written on so why bother?

We could go the whole Stalinist route and just force the press state that a loss of £20,000 on a house is in fact a £20,000 price increase. Just get rid of the word loss and replace it with profit.

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  • 401 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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