GrillsBears Posted October 8, 2008 Share Posted October 8, 2008 From Pesto's blog, "Also the £50bn from government comes with expensive strings attached - such as reductions in dividends payable to other shareholders, and commitments to start lending again to small business and home buyers." Is this the crux of the plan? Basically just indebt evryone further and pay for the debt with taxes? Genius. Quote Link to comment Share on other sites More sharing options...
R K Posted October 8, 2008 Share Posted October 8, 2008 Brown and Darling throw tens of billions of our money around as if it's theirs. I really think they are the worst of the worst of Labour since Foot by a mile. They just have more expensive suits. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted October 8, 2008 Share Posted October 8, 2008 From Pesto's blog,"Also the £50bn from government comes with expensive strings attached - such as reductions in dividends payable to other shareholders, and commitments to start lending again to small business and home buyers." Is this the crux of the plan? Basically just indebt evryone further and pay for the debt with taxes? Genius. They are trying to get the ponzi economy working again. The fact that it won't work escapes them. Bank shares may rebound on the news however the market will realise this alters nothing. The banks are insolvent, when housing losses start appearing in the UK this lie will no longer be possible. It's game over. However Ponzi Brown can't admit it. Quote Link to comment Share on other sites More sharing options...
ccc Posted October 8, 2008 Share Posted October 8, 2008 From Pesto's blog,"Also the £50bn from government comes with expensive strings attached - such as reductions in dividends payable to other shareholders, and commitments to start lending again to small business and home buyers." Is this the crux of the plan? Basically just indebt evryone further and pay for the debt with taxes? Genius. They are lending to these poeple. They are just being very cautious about who to and how much they give. The problem with this being............. Quote Link to comment Share on other sites More sharing options...
DotBomb Posted October 8, 2008 Share Posted October 8, 2008 If there is no lending, houses fall to nearly nothing, and will get bought by vulture funds. Everyone else will be frozen out. This wont stop the correction. Im not against it. Prudent lending that is. Currently the only thing stopping a major squeeze on finanace is the low transaction level. If more people actually wanted to borrow to buy, mortgages would be way way higher than they are now. Quote Link to comment Share on other sites More sharing options...
awf Posted October 8, 2008 Share Posted October 8, 2008 So, what Brown wants to do is give the banks our money, so they can then lend that money back to us with an interest rate attached? I say cut out the middle man and just give us all our equal share of the £250bn (£50bn cash + £200bn liquidity fund) so we don't have to pay interest to any third parties. Alternatively why not just put a clause that any interest returned on any loans and mortgages from the banks from the £250bn is returned to the tax payer - since the important part is *** the economy gets moving again *** , not profit for the bankers. But wait, I can do this myself with Zopa so why bother lending to the banks at all? Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted October 8, 2008 Share Posted October 8, 2008 If there is no lending, houses fall to nearly nothing, and will get bought by vulture funds. Everyone else will be frozen out. This wont stop the correction. Im not against it. Prudent lending that is. Currently the only thing stopping a major squeeze on finanace is the low transaction level. If more people actually wanted to borrow to buy, mortgages would be way way higher than they are now. No one will have any money, if you buy them what are you going to do with them? You won't be able to exact much rental value as no one will be able to afford the rents. Quote Link to comment Share on other sites More sharing options...
R K Posted October 8, 2008 Share Posted October 8, 2008 £50bn in new Tier 1 capital = approx. £1 Trillion in lending does it not? Notwithstanding the state of their existing capital. Quote Link to comment Share on other sites More sharing options...
piece of paper Posted October 8, 2008 Share Posted October 8, 2008 £50bn in new Tier 1 capital = approx. £1 Trillion in lending does it not?Notwithstanding the state of their existing capital. In the old days. I imagine now it just about avoids having to say "We are in breach of Basle II and insolvent". p-o-p Quote Link to comment Share on other sites More sharing options...
GrillsBears Posted October 8, 2008 Author Share Posted October 8, 2008 (edited) £50bn in new Tier 1 capital = approx. £1 Trillion in lending does it not?Notwithstanding the state of their existing capital. That was my understanding. Seems to me we're stood in a hole and the guys at the top have just given the guys at the bottom a bigger shovel. Edited October 8, 2008 by GrillsBears Quote Link to comment Share on other sites More sharing options...
W12 Posted October 8, 2008 Share Posted October 8, 2008 From the Daily Mash, via FT Alphaville: ROBERT PESTON TRANSFORMED INTO PURE ENERGY Peston is now a shimmering orb of pale blue light hovering about four feet above his chair at the BBC Television Centre. He continues to break stories on the financial crisis, but it has now taken the form of perfect knowledge beamed directly into your mind, or transmitted via a series of low, vibrating pulses. BBC director general Mark Thompson said: "Robert is risen above the physical plain. He is both the essence and the vessel for all that is and will ever be. "He is no longer Robert Peston, BBC business editor. His atoms are now woven into the very fabric of the universe. He is become pure news." The BBC has also appealed to householders to limit their electricity use as the ball of light that used to be Robert Peston continues to suck millions of volts directly from the national grid. Across London thousands of ecstatic followers poured into the streets to celebrate Peston's new form. Two goats were sacrificed outside JP Morgan as half-naked staff danced round a disco glitter ball. Meanwhile the few remaining sceptics tried to jam Peston's transmissions by wearing a plastic bucket on their head. Tom Logan, a trainee accountant, said: "He only err gets all these err stories, because he err spent much of the err last 10 years with his err nose rammed straight up err Gordon Brown's err dirt box." Quote Link to comment Share on other sites More sharing options...
Meenzer Posted October 8, 2008 Share Posted October 8, 2008 The Day Today lives Quote Link to comment Share on other sites More sharing options...
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