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The interim report from Sir James Crosby, the former HBOS chairman asked by the Treasury to lead a review into improving wholesale mortgage financing in April, is likely to receive a cool response from lenders who have been lobbying the government for rapid action to break the logjam in the mortgage market.

Nice- but will Brown let it stand?- he needs to buy a lot of votes in the near future, and the smokescreen of 'kick starting the housing market' was his best hope for getting the cash.

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There is no quick fix for Britain’s mortgage crisis and the long-term funding of mortgages should be left to the market, a report to Alistair Darling will conclude on Tuesday.

Sounds good to me.

I have to say I'm quite surprised though.

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Sounds good to me.

I have to say I'm quite surprised though.

He'll have been tarred by the same brush. Quite a few people view the lenders as little more than greedy crooks. Some of it will wear off on past incumbents of high posts in the system - the air of respect being replaced by something altogether different. Get the taxpayer to foot the bill and the majority will hold them in contempt. Besides you don't fix a broken dam by flooding more water into it.

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Does this mean they're going to stop the dreaded Special Liquidity Scheme?

If so, well done all who posted on my Tell Your MP we don't want SLS thread - it worked much quicker than I thought!

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Does this mean they're going to stop the dreaded Special Liquidity Scheme?

If so, well done all who posted on my Tell Your MP we don't want SLS thread - it worked much quicker than I thought!

I think it's more a case of they've been told it's basically a shit idea by someone with a really, really nice suit indeed.

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I think it's more a case of they've been told it's basically a shit idea by someone with a really, really nice suit indeed.

:lol: whatever it takes!

Reckless bankers must not be given the means to do it all over again and line their pockets. Stop the banks failing, well yes they have to, but the money should be ring-fenced for responsible lending and stability only, not here we go again 6x earnings, self-certify, "P60s" from Delboy's Wage Slip service, etc.

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Ironic that the author of the report was the same banking bigwig so prominently featured in the liar loans programme Eric posted yesterday. I guess the guy took his City payoff and is now happy to p*** off his old banking mates.

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Ironic that the author of the report was the same banking bigwig so prominently featured in the liar loans programme Eric posted yesterday. I guess the guy took his City payoff and is now happy to p*** off his old banking mates.

Really?

Ignore what I said above then, thought this fella was gone long before.

Very odd.

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What people don't seem to realise is it's not that this is a crisis situation and markets will return to normal, this is normal. Banks are now in a position where traditional lending - taking in deposits and creating loans- is returning. The reason why there is less money available is because they can no longer easily securitise these loans and bank deposits alone can not cover today's expected house prices.

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What people don't seem to realise is it's not that this is a crisis situation and markets will return to normal, this is normal. Banks are now in a position where traditional lending - taking in deposits and creating loans- is returning. The reason why there is less money available is because they can no longer easily securitise these loans and bank deposits alone can not cover today's expected house prices.

I think that's partly true in that banks appear to be lending at traditional multiples (albeit with higher fees). Extremely low lending volumes are still suspicous, suggesting arent actually lending in practice. Or maybe house prices are just so high that traditional multiple dont work any more ;)

However, I believe the crisis is still present in the bank balance sheets. As house prices drop, their non-performing loans will continue to wipe out their capital. Write-offs will be managed to make them appear legally solvent at all times.

VMR.

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Interesting looking at a range of newspapers there seems to be a range of opinions about what Mr Crosby has said. The Telegraph is saying that the BoE is fighting a rearguard action against extending the current SLS to new mortgage business. In other words the BoE is saying it is not willing to stand in place of the capital markets and just provide unlimited liquidity.

The BoE stance seems fair - they are only willing to relieve the old problem not help get the credit bubble going again.

Bank set for fresh battle with Treasury over mortgage bail-out plan

Ministers are thought to be sympathetic to an extension of the Bank's Special Liquidity Scheme (SLS), which is one option suggested by Sir James. However, Mervyn King, Governor of the Bank of England, has repeatedly insisted that new loans should not be eligible for the SLS, which enables banks to swap unmarketable mortgage-backed securities for gilts, and that the SLS is purely a mechanism for clearing the backlog of old problems.

http://www.independent.co.uk/news/business...lan-879501.html

Edited by Wad

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Interesting looking at a range of newspapers there seems to be a range of opinions about what Mr Crosby has said. The Telegraph is saying that the BoE is fighting a rearguard action against extending the current SLS to new mortgage business. In other words the BoE is saying it is not willing to stand in place of the capital markets and just provide unlimited liquidity.

The BoE stance seems fair - they are only willing to relieve the old problem not help get the credit bubble going again.

They''ve used interest rates in the past to get the bubble going again.

Let's see if their actions relate to their words.

Past indications are that they are full of shit.

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They''ve used interest rates in the past to get the bubble going again.

Let's see if their actions relate to their words.

Past indications are that they are full of shit.

The one big plus is that at the moment the BoE is not cutting rapidly because it can't due to soaring inflation.

I suspect the inflation will start to drop off a bit, because as fuel costs come down this will feed through.

However, even when they do get the chance to cut, it is fair to note that Interest Rates are a really ineffective way of kick starting the economy. Firstly they lag massively, by about 18 months, but secondly they don't seem to give the massive confidence boost some might expect. The real way to get that is through a bit of good old fashioned Keynesian spending - but the Government can hardly afford that at the moment.

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  • 399 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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