Monday, September 8, 2008

Robert Peston – The BBC’s answer to Max Clifford

Fannie, Freddie, Cheshire and Derbyshire

The Credit Crunch (part 2 the sequel - Freddie Mac does Fanny Mae) is newsworthy copy and that's something Peston does best. Not satisfied with virtually starting the run on Northern Crock, auntie Beeb's answer to a Norfolk Terrier, Robert Peston has his finger on the pulse "Well there's the continued decline in the US housing market, the sorriest housing market on the globe" & "Bad news, except perhaps for our own Chancellor of the Exchequer, Alistair Darling - since the Fannie and Freddie rescue costs may well make the potential losses for the taxpayer from Northern Rock seem almost modest" - He seems to think because the FED have to potentualy print zillions to support half there mortgage market we're all right spending our GDP for year proping up the banking system and property prices!

Posted by nooneo @ 01:57 AM (1772 views)
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11 thoughts on “Robert Peston – The BBC’s answer to Max Clifford

  • I don’t really like commenting on my own posted articles but hey, I’m still working at 3 in the morning, so i hope I have earned the right (sanctimonoius git).

    When Peston says “since the Fannie and Freddie rescue costs may well make the potential losses for the taxpayer from Northern Rock seem almost modest” is it an admission that UK taxpayers really are going to fork out , well, I don’t know how many billion quid, and for what ? To save CRASH GORDON and the fLABOURgaster party! To save a housing market dooomed to a 50% end of bubble of sale (maybe even Buy 1 get 1 free).

    People of Britain we have to wake up to the enormity that we face. If Fanny Mae and Freddy Mac have to be saved from failure (why else?), then what hope Northern Crock, Baddebt & Bungley, Allience & Sheister and the other wobbly money lenders who seem to have treated the banking system like a crap game at a Vegas casino have of surviving!. Even as 1 speak (3.05am) the markets are booming in Asia on the news of the US FED bail-out, just because the stocks and shares men need news, any news, even bad news they can pass off as good news, to have SOMETHING to trade in. There is NO credit crunch(apparently), everythings fine. We have no debt(apparently), get busy spending on your credit cards.

    We need to get rid of this shambolic and frankly, (oh gawd I hate saying this), possibly more dangerous blubbermint than the tories (I’m saying that agin just to check) more dangerous than the tories (yep that’s right). Remember, we all know that Bush is an idiot, and possibly uses his teeth to trim his toenails, but CRASH GORDON is a dangerous deluded fool. My mum always told me a fool and his money were easily parted, well there’s a fool in number 10 and he’s parting with OUR money (puts on film voice-over voice) “Convinced he single handedly created the economic miracle of the 21st century, CRASH GORDON knows, he alone, has the abiltity, acumen and the downright economic savey that only a history degree can impart, to save the good ship HMS Great Britain through the dangerous waters ahead.”

    And even having the Derbyshire and Cheshire building societies in the same article as Fannie Mae and Freddie MAc just shows what a colossal knob Peston is. Proportion dear boy (Father ted: “Dougal look” (holds up 1 inch toy cow) “little dougal, little”, (then points to cows outside caravan in field) “Far away, dougal, far away!”)

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  • Preston’s job – and he knows his brief well – is to sell the con to the public. Just look at his recent sycophantic interview with the inept HBOS boss. BTW, is it just me, or does anyone else find Preston’s voice weird? There’s something a totally unnatural about his vocal inflection (no lizard-alien theories, please).

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  • All this will do is further delay the UK vendor, realising that their property isn’t worth a gazillion pounds anymore, and they will now continue to hold on for the ‘inevitable’ rebound in property prices, because , as we all know, if its alright in the US of A, then its alright in Old Blighty and the rest of the world. Look at how banking stocks surged in Asia this morning. They know they are ‘too big to fail’. There is nothing but “Moral hazard” in the USA, in fact the only real hazard is that the Fed, treasury and all the financial whizzkids ever developing any morals.

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  • mountain goat says:

    @ bystander

    re moral hazard. I posted an interview here last week with Fed veteran Harvey Rosenblum who says “The Job of Federal Reserve is to create Moral Hazard”. It is worth watching just to get their view. The Fed is not concerned about individual banks going bust. They are concerned about any institution going bust where the knock-on-effect hurts the whole economy. Hence “too big to fail”. So it is not about keeping their Wall Street pals rich, it is about trying to keep the economy rolling along. Unregulated markets will tend to go boom and bust of themselves. Left to themselves the markets will be quite vicious and yes we would be in a Great Depression right now without the Feds efforts. You can argue that the Fed caused this problem in the first place keeping IR too low, but now that we have a crisis doesnt mean that we should now ask them to stand back and let us have our Depression please.

    The good news in all this is that this F&F pair with their dangerously over-leveraged business model are now gone, so hopefully the house price insanity of the past few years is gone for some time to come. Also since the bail-outs are getting so huge we can expect a lot more regulation of the financial sector, which is long over-due.

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  • Here, here mountain goat – 100% in agreement with you

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  • The Capitalist says:

    The FED is a private bank. This is suicide for the Dollar…

    “If the American people ever allow private banks to control the issue of their currency, first by inflation then by deflation, the banks and the corporations will grow up around them, will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” — Thomas Jefferson

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  • The F & F bailout looks to me like the mother of all sticking plasters.

    In the short term, the immediate crisis is resolved and the shareholders in those companies (quite rightly) are effectively wiped out.

    However, the remedy seems to involve the creation of a huge amount of new money. With the US economy unlikely to grow significantly over the next couple of years, that looks likely to depress the value of the greenback and discourage foreign investers from buying dollar denominated securities. That in turn will lever the yield on those securities, propelling interest rates and inflation upward – result: stagflation.

    On the brighter side, this bodes well for niche US exporters like Boeing, Caterpillar & Deere, who should be more than able to offset higher interest rates with better export profits.

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  • The US Gov already put $800 billion provision aside for this – and that’s just for the moment – that’s got monetary inflation written all over it.

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  • Look guys – I remember the eary 90’s and despite what most of those promoting property purchase wouldsay now, there were sales of flats in docklnads where the discounts were %50 just to get them off the books. Now, however painful that was for those who bought for twice the price, the government didn’t step in and save individuals – The fed taking on F&F doesn’t mean individuals are now out of the wood and all is OK again – but at the end of it all in the mid 90’s property was on the up again and poeple forgot pretty quick. My point – even if property came down 50%, we would recover and survive.

    This thing will play out, but those who over borrowed and speculated will feel uncomfortable. That’s the way it’s always been.

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  • Whostolemyendowment says:

    I think to give Preston the mantle of the man who ‘virtually started the run on the Nothern Rock’ is a bit much……Northern Rock started the run on Northern Rock by their business model tipped over by the credit crunch. The UK government and banking system had little room to manoeuvre if there was not to be contagion in to the UK banking sector at large – especially fragile banks like BTL champion B+B.

    Still, if you looked past his blog and look at the events as they unfold – and as the dominoes fall – we are facing an uncertain future……but how that will pan out? Not even Preston knows that as he tries to ride the run-away train….

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  • Whyismypensionworthless says:

    Robert “Preston” Peston – is the MOST irritating person on british TV news. He needs to go on a course and learn how to speak properly and how to dress well. Did anyone see the abortion of a tie he wore last night (12/10/08) which just stuck out like a sore thumb?! He may know his stuff – but that’s no good if people can’t bear to listen to his ridiculous quirky rantings. Does he even know he’s doing it? Is it some kind of self styling? Why aren’t his bosses having a word with him?

    Grrr!

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