Wednesday, November 5, 2008

Government-owned lender defies Government

Banks to defy Government and raise mortgages rates

Northern Rock, the Government-owned lender, has announced that it is pulling all its tracker deals for homeowners and landlords and is expected to increase rates when it relaunches the mortgages later this week. It follows a move by Abbey earlier today to increase interest rates on tracker deals by up to 0.5 percentage points.

Posted by sold out @ 05:11 PM (1823 views)
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19 thoughts on “Government-owned lender defies Government

  • From todays mortgagestrategy –

    Cheltenham & Gloucester is temporarily withdrawing its entire tracker range with immediate effect. The subsidiary mortgage brand of Lloyds TSB says the decision has been taken to review its tracker range in line with its competitors. Abbey, Nationwide, Halifax and government-backed lender Northern Rock have all upped their tracker rates over the last week.But C&G also pledges that it will apply any cut in the base rate, due to be announced tomorrow, onto its existing SVR. The lender says existing tracker customers will also benefit from the widely expected rate cuts with effect from December 1.Stephen Noakes, marketing director at C&G, says: “We always try to offer a mortgage range that is priced competitively and reflects the cost of funding. We’ve seen some easing in swap rates recently in anticipation of a base rate cut tomorrow and are able to pass this on. “But LIBOR remains well above base rate and our competitors have already changed their trackers to reflect this. “To help us manage our business volumes and maintain a high level of customer service we have to review our tracker range.”

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  • planning4acrash says:

    So, private investors looted free government money, not giving it to customers?! Did Darling get ripped off or line his friend’s boots? Where are the investigations?! A bankruptcy firesale would have served taxpayers & mortgagee’s, shareholders go2hell.

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  • planning4acrash says:

    Bankruptcy is best because investors mispriced the company. Bankruptcy lets new owners correctly price risk, ensuring a profitable future. Nationalisation is simply expensive/ineffective Keynesian price controls to wrap failed investors in cotton wool.

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  • A bit more from mortgagestrategy

    Home owners rushed to secure tracker deals during October amid hopes of further rate cuts, reveals the latest monthly mortgage survey from Spicerhaart Financial Services. The survey shows that the number of borrowers opting for a tracker mortgage last month increased by 12.5% from September, while the take up of fixed rate deals fell by 11%. Steve Cox, operations director of Spicerhaart Financial Services, says: “There has been a rush of borrowers to secure the remaining competitive trackers available. “If the base rate is cut again tomorrow, which is likely, these borrowers will reap the rewards.” But Cox says borrowers who have yet to secure a competitive tracker will find it more difficult as lenders withdraw their trackers or increase the margin on their rates.He adds: “A cut in the base rate will only have a positive impact if lenders are both able and willing to pass the cut on in their mortgage products. “The government and the Bank of England must continue to encourage institutions to be active in the lending markets if we are to see a true improvement in the mortgage market.”

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  • planning4acrash says:

    Again, encouraging lending is Keynesian price fixing. The only way to kickstart the market now is let houses reach a bottom, where yields are profitable. This is IMMEASURABLY cheaper than socialist solutions to affordable housing.

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  • planning4acrash says:

    To add. Price fixing causes shortages. Just as gold price fixing has got gold coins from dealers shelves, so too, forced lending will keep properties from the market, by reducing the quantity of affordable properties, thus disrupting lives.

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  • http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=176019&d=340&h=341&f=342

    Avoid banks stifled by government’s grip, says New Star’s de Blonay – Investors should be wary of government-influenced banks stocks, says New Star global financials fund manager Guy de Blonay. Speaking today at a New Star manager question time Blonay said government-controlled financial institutions which hold little prospects of dividend payments over the next year are “difficult investments”. He said: “The companies have to cancel their dividend for the next year or so and repay expensive preference share rates so it’s very difficult to see any real interest as they have no income attached.” According to Blonay, global governments will take a more prominent position in the banking system as they seek to stabilise the economy in the second half of 2009. He warned that this could banish the bonus culture and worsen the current salary structure triggering an exodus of talent, saying: “Shareholders would be at the rock bottom where anything positive is coming out.”Blonay noted that RBS’ efforts to repay Government preference capital quickly in order to resume dividend payments in 2010 may bolster its position but said Barclay’s expensive decision to independently raise capital may have been the price to pay to retain talent in the company. He said: “Global financials that can avoid government intervention will be the survivors. They will be the major winners over the next year or two, will be the most profitable and are those to invest in.”

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  • THIS IS THE GREATEST SCAM IN THE HISTORY OF THE UNIVERSE!!

    The Federal Reserve Bank only creates the Principal – not the usury or interest that it lends to the U.S. government. Therefore the usury can NEVER be repaid and the end result is foreclosure and bankruptcy.

    http://www.apfn.org/Mind_Control/money/money.htm

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  • Fractional Reserve Banking as Economic Parasitism: A Scientific, Mathematical & Historical Expose, Critique, and Manifesto
    Vladimir Z. Nuri

    Macroeconomics from EconWPA

    Abstract: This paper looks at the history of money and its modern form from a scientific and mathematical point of view. The approach here is to emphasize simplicity. A straightforward model and algebraic formula for a large economy analogous to the ideal gas law of thermodynamics is proposed. It may be something like a new “F=ma” rule of the emerging econophysics field. Some implications of the equation are outlined, derived, and proved. The phenomena of counterfeiting, inflation and deflation are analyzed for interrelations. Analogies of the economy to an ecosystem or energy system are advanced. The fundamental legitimacy of “expansion of the money supply” in particular is re-examined and challenged. From the hypotheses a major (admittedly radical) conclusion is that the modern international “fractional reserve banking system” is actually equivalent to “legalized economic parasitism by private bankers.” This is the case because, contrary to conventional wisdom, the proceeds of inflation are not actually spendable by the state. Also possible are forms of “economic warfare” based on the principles. Alternative systems are proposed to remediate this catastrophic flaw.

    http://econpapers.repec.org/paper/wpawuwpma/0203005.htm

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  • A GDP of a country, in this case, the Philippines, can be defined alternately as: GDP = %GNP owned by Filipino citizens.

    Therefore, the ratio r = GDP/GNP
    then, r = fractional reserve system of entire Philippines

    where 1 – r = the Foreign Ownership of Philippine Assets

    So, if a money parasite is “foreign” to the Philipines, then 1 – r is the degree of parasitic control of the host Philippines.

    A debtor nation status can be a sign of nationwide infection and subjugation by a foreign money parasite.

    Stiglitz (Former WB President, Nobel Economics Laureate) described how IMF’s modus operandi can be summarized relative to developing nations as follows, or as other economists would like to call it, The 4 Steps to Damnation:

    Privatization – State industries are sold off after the countries shave billions off of the prices of electricity and water companies with “commissions” (kickbacks) going to the country’s politicians.

    Market Liberalization – Stiglitz refers to this as the “hot money” cycle. Cash comes in for real estate and currency speculation and then “flees” at the first whiff of trouble.” The nation’s reserves that back the currency are drained sometimes in days. The IMF demands the nations raise interest rates to the astronomical ranges 30-80%.

    Market-Based Pricing – The nation is required by IMF to raise prices on the staples of food, water, and cooking gas. This has a disproportionately put heavy cost on the poor.

    Social Unrest Also Called “The IMF Riot.” – Step “three and a half” occurs at this point as the IMF “squeezes the last drop of blood out of them, turning up the heat until the whole cauldron blows up” when food and fuel subsidies for the poor are eliminated (Indonesian riots, 1998; Bolivia, 2000; Eucador, 2001). Secret IMF plans coldly anticipate the likely “social unrest.”

    Free Trade – Free trade by the rules of the World Trade Organization and the World Bank, analogous to the Opium Wars. Trade barriers are knocked down in foreign countries but with financial blockades in return.

    Written in the late 70’s with extremely technical specifications and forward-thinking advanced Systems Engineering, Mathematics, and Thermodynamics, “Silent Weapons for Quiet Wars” (http://www.lawfulpath.com/ref/sw4qw/index.shtml) represented one of the most comprehensive “covert economic wars” waged and will be waged against developing nations.

    http://www.philippinepolitics.net/boards/archive/index.php?t-1758.html

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  • Why Can’t the U.S. Have the Debate about Naomi Klein’s Book That Europe Has?

    shock doctrine .. “silent weapons for quiet wars”
    [Report this comment] Posted by: vzn on Sep 21, 2007 7:00 PM
    Current rating: 5 [1 = poor; 5 = excellent]

    “none are more enslaved than those who falsely believe they are free” — goethe

    americans have morals, but those morals revolve around going to work every day, they think that is their duty, and once fulfilled, their time off is for themselves & family. there is not much energy left over for politics. “question authority” is not much more than a 60s bumper sticker.

    they are not curious enough to notice the leash, the shackles, and even if noticed, they lack the willpower to remove it.

    there is a small minority that is well informed and intellectually active, but the vast majority seems to be [I am speaking statistically here, and please pardon my bluntness] dumb, fat, and inert.

    what about the 60s? why has political thought in the US among the masses become so homogenized, stultified?

    I heard john stewart just asked alan greenspan if
    we really need a federal reserve. there is a glimmer of hope for
    the country.

    much of naomi klein’s book is foreshadowed by this paper I wrote in 2002. it has an entire section examining the reasons that the public is so inert. also, it has even deeper insights into the origin of the shock doctrine. it traces the philosophy to a paper called “silent weapons for quiet wars”

    “fractional reserve banking as economic parasitism”

    endorsed by two phd economists. printed in nexus
    magazine, 60k world circulation. #1 top downloaded
    economics paper. used by economics
    teacher in australia as standard classroom material.

    more info on request.

    recent supporting material:

    The Shock Doctrine: Naomi Klein on the Rise of Disaster Capitalism

    Confessions of an Economic Hit Man: How the U.S. Uses Globalization to Cheat Poor Countries Out of Trillions

    John Perkins on “The Secret History of the American Empire: Economic Hit Men, Jackals, and the Truth about Global Corruption”

    Video, senator/pres candidate Dennis Kucinich at last years 2005 Monetary Reform Conference

    money as debt video by Grignon

    [« Reply to this comment] [Post a new comment »] [Rate this comment: 1 – 2 – 3 – 4 – 5]

    » Excellent cognitive therapy Posted by: ray burchard

    http://www.alternet.org/workplace/63178/?comments=view&cID=735163&pID=735003

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  • gardeniadotnet says:

    Who said this?…

    There is no means of avoiding the final collapse of a boom brought about by credit (debt) expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit (debt) expansion, or later as a final and total catastrophe of the currency system involved.

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  • entertainment is everything, the following fairy tale is for educational purposes only and should not be used as a deposit on your next house.

    It is patently impossible to discuss social engineering or the automation of a society, i.e., the engineering of social automation systems (silent weapons) on a national or worldwide scale without implying extensive objectives of social control and destruction of human life, i.e., slavery and genocide.

    This manual is in itself an analog declaration of intent. Such a writing must be secured from public scrutiny. Otherwise, it might be recognized as a technically formal declaration of domestic war. Furthermore, whenever any person or group of persons in a position of great power and without full knowledge and consent of the public, uses such knowledge and methodology for economic conquest — it must be understood that a state of domestic warfare exists between said person or group of persons and the public.

    The solution of today’s problems requires an approach which is ruthlessly candid, with no agonizing over religious, moral or cultural values.

    You have qualified for this project because of your ability to look at human society with cold objectivity, and yet analyze and discuss your observations and conclusions with others of similar intellectual capacity without a loss of discretion or humility. Such virtues are exercised in your own best interest. Do not deviate from them.

    http://www.akasha.de/~aton/swfqw.html

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  • 13. gardeniadotnet said…
    Who said this?…
    easy peasy

    Ludwig Von Mises View that:

    “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” (Von Mises, Human action, p.570)

    De Fremery disputes this fatalist view:

    “But a more plausible theory is that all economic activity is continually reaching a new equilibrium between the total circulating medium of exchange and the goods and services offered for it. In other words, an expansion of bank credit leads to a collapse not because of mis-direction’s in production but rather because of the operation of Gresham’s law. The use of bank credit as a medium of exchange gives us what Bishop Berkeley called a ‘double money’….”

    The reason for the collapse then is the preference for the cash money as opposed to the bankers credit, resulting in runs on the banking establishment, to draw out cash.

    http://www.monetary.org/rights.htm

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  • Gardeniadotnet says:

    @malct

    Curses. I’ll get you next time.

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  • gardeniadotnet says:

    @malct

    Curses. I’ll get you next time.

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  • gardeniadotnet says:

    “The reason for the collapse then is the preference for the cash money as opposed to the bankers credit, resulting in runs on the banking establishment, to draw out cash.”

    Oh dear.

    “Just nipping to the cashpoint darling.”

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  • and just where is nooneo?

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  • it_is_going_with_a_bang says:

    As a business you need to protect your profit margins – especially when volume of sales decreases.The banks are no different.
    The bottom line is you are not forced to take out a mortgage with anyone and the level of rates even where they are now are not historically high.

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