Tuesday, Apr 22, 2008

Do Not Hit Link But Look At This!

BANK OF ENGLAND: I sent a complaint yesterday - and got a reply!!!

See first comment for reply!

Posted by waitingfor hpc @ 10:52 AM (6862 views)
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47 Comments

1. waitingfor hpc said...

Hello

Thank you for your enquiry.

I would emphasise that the purpose of the scheme is to help improve the liquidity position of the banking system and raise confidence in financial markets while ensuring that the risk of losses on the loans they have made remains entirely with the banks. The whole focus is on underpinning the liquidity of the UK banking system. Financial markets are not working normally and without action, there is a risk that this will have an impact on the wider economy.

It is not a bail-out in any sense and its misleading to describe it as such.

As you may recognise from the details of the facility - we are swapping assets with the banks of equivalent value - with margins applied by the Bank. This is about the liquidity of assets, not their soundness.

Our announcement may be seen in full at:

http://www.bankofengland.co.uk/publications/news/2008/029.htm

Yours sincerely

Malcolm Shemmonds


-----Original Message-----
Sent: Monday, April 21, 2008 11:07 AM
To: Enquiries
Subject: Please pass to a complaints area - if you care at all about the views of the public at large!!!

******************************************************
This email has reached the Bank via the Internet or an external network
******************************************************

I along with many Directors of manufacturing companies am disgusted that you are bailing out the reckless banks and buying junk!

Under what remit is the bank of englands job to prop up an over inflated housing market?? I now feel compelled to support the Euro currency and want no further involvement in sterling, above that I have to have. At least the Euro has sensible polocies and a more accurate measure on inflation.

This is a dangerous political move for an 'independant' bank. By the way TRUE INFLATION is running at circa 12.5%, and thanks to your actions will now rise further. Are we at 20% M4 money growth yet?

This is incompetence at the heighest level. Afterall who let these banks build up this reckless debt in the first place? What about the profits that these banks keep making, and the huge salaries paid in London???

I am ashamed and disgusted to be English today.

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Tuesday, April 22, 2008 10:53AM Report Comment
 

2. paul said...

"It is not a bail-out in any sense and its misleading to describe it as such."

HAHAHAHAHAAAHAA.

And what is the entire media industry calling it?

Tuesday, April 22, 2008 10:57AM Report Comment
 

3. Bug16 said...

I'm impressed they replied so quickly. I'm also impressed with:

"It is not a bail-out in any sense and its misleading to describe it as such. "

Anybody want to tell the BBC?

Tuesday, April 22, 2008 11:02AM Report Comment
 

4. Cityfool said...

One thing. The ECB has been doing pretty much of the BoE is about to do for some time so I wouldn't put too much faith in the Euro...

Tuesday, April 22, 2008 11:04AM Report Comment
 

5. Sharpe said...

"This is about the liquidity of assets, not their soundness."

Lack of liquidity meaning no one will buy them, because they are totally unsound.

Is this appalling dishonesty or just plain idiocy - I am not sure which is worse.

Tuesday, April 22, 2008 11:05AM Report Comment
 

6. James said...

Paul - yes, perhaps in the papers you read, but if you actually understood what this was, if you perhaps read the details or the quite good thread we had on here yesterday, you might understand what this actually is.

The truth is, it suits the government to spin this as a bail-out and support for the mortgage market when it is in fact, no such thing. As most journalists have minimal understanding of the money markets, this simply gets regurgitated.

Think for yourselves.

Tuesday, April 22, 2008 11:07AM Report Comment
 

7. Btl Rules said...

@ waitingfor hpc said Re: I am ashamed and disgusted to be English today.

You don't sound English chap, if so, and as a supposed director writing to the BOE I would suggest that you familiarise your self with a spell check.

polocies - I assume you mean policies
heighest - usually spelt highest

Tuesday, April 22, 2008 11:08AM Report Comment
 

8. inbreda said...

Absolutely brilliant idea. I have sent my own enquiry to see if I get a response:

Hi,

I have been spending vast amounts of money over recent years buying lots of junk that I don't really need. I have been entirely irresponsible and have maxed out as many credit cards as I could get my grubby little hands on. The problem is that I have now run out of credit, so although the good times were good, I am now starting to feel the pinch. I do not want to downgrade to a less powerful sportscar. Nor do I want to quoff a less aspirational brand of champers. In short, I have a liquidity crisis.

I hadn't previously been aware that it was the bank of englands job to bail out greedy, over-paid, frivolous tosspots, but all I seem to read in the press now is about how the BoE is printing money at one hell of a rate, to make sure that the irresponsible bankers that created the problem do not have to pay for their greed. I'm not sure whether the motivation is to help the wealthy bankers or just to save the skins of the politicians that have been quietly allowing the era of excessively easy credit to continue unabated for their own reasons of greed. I can't imagine that it is the latter, given how amazingly independent the BoE is, but hey - why should I care? I think that devaluing the pound - effectively stealing money from prudent savers to pay the most irresponsible people - is an idea of absolute genius!

To this end I would be very grateful if you could forward me a minimum sum of 545,000 - (actually best make it Euros. The GBP will be worth less than donkey sht soon.) - so that I might carry on enjoying life at everyone elses expense.

Hurrah!

Tuesday, April 22, 2008 11:13AM Report Comment
 

9. European-bear said...

hpc at 1 "This is about the liquidity of assets, not their soundness"

If the assets were sound, then it should be easy to raise money on them. So surely if assets are sound they are also liquid in the sense they make good security...or am I missing something here....

Tuesday, April 22, 2008 11:29AM Report Comment
 

10. tyrellcorporation said...

Inbreda...class! :)

Tuesday, April 22, 2008 11:32AM Report Comment
 

11. General Melchett said...

I await whatever response they send you, Inbreda. If the signs look promising I may then spend all my hard earned savings, and 10x more I'll borrow, on sh8t I dont need, cant afford, and is ridiculously overpriced anyway, then ask for a similar bailout.

Tuesday, April 22, 2008 11:35AM Report Comment
 

12. taffee said...

lol

dear grossley incompetent and vested interest

I have been reckless and bought piles of crap over the last few years.I was wondering if the boe could get me out of this hole.

If you could bung me tens of thousands I will secure the money on cds,garden furniture,kitchen and clothes I have accumulated.

Alternatively perhaps you could have me floated on the stock market?

just a thought...p.s....amazing that an indeoendent group like boe are in bed with the government

Tuesday, April 22, 2008 11:36AM Report Comment
 

13. Orwell said...

This is the E Mail a colleague of mine sent...

Dear Sirs,

I am writing to make my views clearly known that I am not in support of this move. Why are you buying junk bonds (much of which CDO, only 6 months ago, Mervyn King agreed on Newsnight were not understood) and putting the money supply at risk in so doing?

Are you satisfied that this scheme is lawful according to EC Law? I would be grateful if you could seek Counsels opinion to confirm that this is indeed the case.

Pending the reply to this E Mail I reserve the right to refer my complaint to the EC Ombudsman for their view...

Tuesday, April 22, 2008 11:38AM Report Comment
 

14. James said...

Sharpe - the idocy is on these boards. A bunch of pub bores with little knowledge or understanding, goading each other into a frenzy.

Tuesday, April 22, 2008 11:41AM Report Comment
 

15. doomwatch said...

Dear BoE,

I went down the dogs last night & put some IOU bets on with Dave the Turf. Lost the lot & can't pay.
Is there any chance you led him five hundred till I'm on the straight n narra, sort of payment holiday like ?

Taa, BTL Bill.

Tuesday, April 22, 2008 11:50AM Report Comment
 

16. 51ck-6-51x said...

inbreda - you should mention in what asset class you are suffering a liquidity crises... how about stating that although you have no cash, you do have 1,500,000 used disposable nappies which you have not been able to shift since you acquired them in mid 2007, so if they would be kind enough to loan you 545,000 for a few years, then they can hold onto the nappies you estimate to be worth 750,000.

Tuesday, April 22, 2008 11:50AM Report Comment
 

17. letthemfall said...

Pretty good to get a reply. I emailed the PM but have not got a reply - didn't expect to.
The argument of liquidity increase against bailout is an interesting and finely poised one. If anyone watched the news last night (I think Newsnight covered it too) there were comments about the Bank only accepting the best mortgages, which presumably one can value more easily, with a significant margin built in. This suggests that banks will not be making cuts of any note to borrowers.

Tuesday, April 22, 2008 11:50AM Report Comment
 

18. paul said...

James, I am not the media.

I understand perfectly well what it is. Technically, it is not a bailout, and it was dbnazz yesterday who first correctly identified that the government and the Bank of England are at completely cross-purposes on this one - the government says that this will help stretched mortgage holders, the commercial banks say this will only prevent them from foldinga la Rock, the Bank of England says this is a very sharp haircut exchange for prime assets only.

The amusing thing is that if you wait a week or so, watch the torrent of media scorn when the banks fail to pass on any rate cuts to borrowers. That is when things will get really interesting.

Oh, and don't jump to conclusions.

Tuesday, April 22, 2008 11:52AM Report Comment
 

19. Mark Wadsworth said...

Spade comment 5 -
"Is this appalling dishonesty or just plain idiocy - I am not sure which is worse."

It's neither, I am afraid - the choice is between 'idiotic dishonesty' or 'dishonest idiocy'. Not just the transaction, but the spin as well.

Tuesday, April 22, 2008 11:52AM Report Comment
 

20. European-bear said...

There is a job section on the BOE website.....

"At the Bank of England we recruit experienced economists, finance specialists and other professionals from a variety of backgrounds. The common criteria for success is that you must want to work in a challenging, quality driven and high profile environment."

perhaps we should all aply!

Tuesday, April 22, 2008 11:52AM Report Comment
 

21. new user 2007 said...

BTL rules...

Clearly grasping at straws and, as usual, you have no point. Diverting attention away from the facts will in no way help now that leverage is working against you:)

Perhaps you should return to the above as 1) this is not an English language site and 2) your own grammar has some serious issues.

Having any luck with remortgaging?:)

Tuesday, April 22, 2008 12:06PM Report Comment
 

22. paul said...

"You don't sound English chap"

"Chap"?

You don't sound heterosexual.

Tuesday, April 22, 2008 12:07PM Report Comment
 

23. Young_mark said...

Yes, I'm amazed they bothered to respond at all, given your charmingly unothodox orthography and Daily Mail style ranting.

Tuesday, April 22, 2008 12:07PM Report Comment
 

24. new user 2007 said...

p.s. the point that this only applies to assets pre-December 2007 is somewhat of a red herring...they must know about fungibility at the BoE...

by taking off some dodgy assets off the books it means new assets can involve riskier lending i.e. the bank equivalent of now no longer having to save for a rainy day? if confidence returns expect moral hazard to reach new levels.

Tuesday, April 22, 2008 12:10PM Report Comment
 

25. James said...

Paul - then why your scornful laughter? I can smell you backtracking from here... I've just posted an FT editorial that's a helpful starter on what this means.

Tuesday, April 22, 2008 12:13PM Report Comment
 

26. waitingfor hpc said...

Btl Rules ....

judging by your name on this site I guess you never will be a director! So im my haste between meetings I had some typing errors. BIG DEAL! If you think BTL rules perhaps you need some Maths lessons, it does seem you must have scored quite high in spelling though.

If I am a Director? ... mmm .. let me see. Bought gold at $275 an ounce now over $900 ... MADE A LOT OF MONEY. Bought Euro's at 0.60 to the , now near 0.80 to the .... MADE A LOT OF MONEY. Run a company employing over 100 people ... with no debts, and one of the highest profit margins in our industry ... MADE A LOT MONEY.

And guess what ... not one BTL! No money in property, shares ... or soon the ! I make money the old fashioned way my friend - you work hard and SAVE .... that is the real world, and a lesson I think you are about to learm.

Tuesday, April 22, 2008 12:17PM Report Comment
 

27. waitingfor hpc said...

oh dear - there i go again with a typo error - not learm but learn. Must dash I have a meeting to attend as a Director.

Tuesday, April 22, 2008 12:19PM Report Comment
 

28. Debtfree said...

waiting for hpc...

"Bought gold at $275 an ounce now over $900 ... MADE A LOT OF MONEY"

Have you ? Be interesting to know what you exchanged the gold for , I would never sell at the moment and am suprised you have.

Tuesday, April 22, 2008 12:33PM Report Comment
 

29. confused76 said...

Long and short of it... wait for next week when the BoE will have to inject 50 more billions.

Will they call it a bail out then?

Or P2PDN (private to public debt nationalization)?

Tuesday, April 22, 2008 12:50PM Report Comment
 

30. Btl Rules said...

Ahhhhh, the ignorant world of HPC, I've got more assets in my little thumb than you guys will ever dream of.

As for waitingfor hpc ...and his director's world!! keep shouting son, you might be somebody one day.

Tuesday, April 22, 2008 12:51PM Report Comment
 

31. Btl Rules said...

post no. 20 says:

Bought gold at $275 an ounce now over $900 ... MADE A LOT OF MONEY. Bought Euro's at 0.60 to the , now near 0.80 to the .... MADE A LOT OF MONEY. Run a company employing over 100 people ... with no debts, and one of the highest profit margins in our industry ... MADE A LOT MONEY.

If so why are are you sweating so much on being able to get on the housing ladder?

Tuesday, April 22, 2008 12:54PM Report Comment
 

32. plato said...

Btl @ 7

What paul said @ 18........ only louder.

and it's 'yourself'' (if you want to be picky) if your English and I'm not. Would you like to have this conversation in Greek ?

Waitingfor : You are a brave man. That is sufficient.

Tuesday, April 22, 2008 12:54PM Report Comment
 

33. Btl Rules said...

you lot are a bit nervous today, 70 idiots against the real world!!!

Tuesday, April 22, 2008 01:04PM Report Comment
 

34. 51ck-6-51x said...

The definition of bailout from answers.com
... and from dictionary.com
... and from wikipedia.org

I would say that this fits in with these definitions of a bailout very, very well! (Even though it's the bailout of multiple entities at once.)

And stop with all the spelgerng & gramer 5h1t [sic][, who cares who is good at English, but if you do, why not go and hang out somewhere relevant!

Yeah, I know I started a sentence with the word 'and' - woop-de-doo.

Tuesday, April 22, 2008 01:11PM Report Comment
 

35. Bananasplit said...

Suppose the point of this sight (site) is too(to) raise issues and concerns with house prices and mortgages (morgages) etc.
Critising (criticising) spelling errors is nonsunce (nonsense),;: we all know what they mene, meen, mean. bring back hanging and hang all politicians by the b#llucks or the equivalent.

Tuesday, April 22, 2008 01:20PM Report Comment
 

36. Somersetinlondon said...

So, we've established that nobody on here has the necessary grammar or spelling capacity to fault others on theirs. Can we please get back on topic?

Tuesday, April 22, 2008 01:23PM Report Comment
 

37. Btl Rules said...

If it wasn't for caring people like me letting out properties to those that are not and will in all probability never be in the privileged position to own a property - ask yourself, where would you be? In fact I think I'm going to put rents up!

Tuesday, April 22, 2008 01:26PM Report Comment
 

38. Icarus said...

Btl Rules @7 - "as a supposed director writing to the BoE, I would sugest....." means that you (Btl Rules) are the supposed director.

Tuesday, April 22, 2008 01:38PM Report Comment
 

39. p. doff said...

Regarding spelling/grammar. Nobody gives a toss about spelling on a blogsite, but I do think it is important to make an effort with e.g. business letters, job applications or complaints. The recipient is likely to take you more seriously IMHO as (rightly or wrongly) it implies a certain standard of education, plus a degree of care.

Tuesday, April 22, 2008 01:50PM Report Comment
 

40. Btl Rules said...

@ p.doff thank

Tuesday, April 22, 2008 01:53PM Report Comment
 

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43. Warrenbuffetcar said...

I sent them a mail when they cut IRs, largely in a similar vein. I only received an auto ack back saying they will respond to me later, I've yet to receive any reply.

Tuesday, April 22, 2008 02:39PM Report Comment
 

44. indiablue19 said...

Lord, who downtown has the time to respond to single enquiries? Are they all sitting twiddling their thumbs waiting for the roof to cave in? Or did they hire Kirstie, now that her celebrity days are overwith, to field pugnacious questions and put out the hard word?

Tuesday, April 22, 2008 03:56PM Report Comment
 

45. Ooter said...

Re: waitingforhpc said, post no. 28

"If I am a Director? ... mmm .. let me see. Bought gold at $275 an ounce now over $900 ... MADE A LOT OF MONEY. Bought Euro's at 0.60 to the , now near 0.80 to the .... MADE A LOT OF MONEY. Run a company employing over 100 people ... with no debts, and one of the highest profit margins in our industry ... MADE A LOT MONEY."

If you bought EUR vs GBP at 60p and sold at 80p, then you had to do it back in 2001 or so, as thats the last time we traded there, so thats a 33% return in 6 and a half years or so, which is about 4.75% per annum return when compounded, significantly worse than cash deposits have yielded in that time, and not even remotely close to what BTL would've earned u!! Also, gold at $275 and now at $900 seems to suggest a 227% profit. Problem is that the profits are in $ and so heavily devalued! Real GBP return would be 150%. Very impressive, but not as much as you originally made out, and BTL isn't a million miles away from it.

Wednesday, April 23, 2008 03:28PM Report Comment
 

46. Brian said...

I love the comment we are receiving equilivent value ! if that is not misleading what is ! .. I am so pleased my tax money is being used to pay above market price
and value to help protect private banks who are still paying out large bonuses and declaring dividends . It stinks .

Wednesday, April 23, 2008 03:42PM Report Comment
 

47. Sinjin said...

Join the club...obviously this isnt the first time this has happened

FYI

http://video.google.com/videoplay?docid=-1583154561904832383

History will keep repeating itself..until the peasants see fit for a financial revolution!

Thursday, April 24, 2008 08:48AM Report Comment
 

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