Monday, June 25, 2012

Nice little house price bubble you’ve got going here, a shame if anything were to happen to it…

SCOTS FACE £1BN HOME LOANS HIT

Danny Alexander, the Chief Secretary to the Treasury, predicted that Scotland may not inherit the UK's coveted AAA credit rating, which determines the cost of borrowing on the international money markets. That could force up interest rates for Scottish banks*, leading to bigger repayments for hundreds of thousands of mortgage-holders and small businesses.... However, Finance Secretary John Swinney described the claims as "economic illiteracy" and said it was "deeply worrying" that a senior Coalition minister did not know the difference between the interest rates paid on government bonds and private bank lending." And of course, even if interest rates went up, savers would benefit by an equal and opposite amount. * HBOS, RBS?

Posted by mark wadsworth @ 01:30 PM (1587 views)
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5 thoughts on “Nice little house price bubble you’ve got going here, a shame if anything were to happen to it…

  • Treasury consults on Scottish gilts (Moneymarketing 22/06/2012)

    Chief Secretary to the Treasury Danny Alexander has announced the Treasury has begun a consultation on whether the Scottish government should be able to raise debt.

    The consultation will seek views and evidence on the potential benefits and disadvantages of bond issuance by Scotland, which will consider value for money, potential macroeconomic issues and alternative sources of borrowing for the Scottish government.

    Measures were introduced by parliament in the Scotland Act 2012 that could allow Scotland to issue its own debt from 2015-16.

    .Alexander says: ”This takes forward the commitments we made in the Scotland Act, which represented the greatest transfer of powers from Westminster for three hundred years.

    “I hope that academics, investors and other market participants will respond to this next step in potential further devolution of powers to Scotland.”

    The move follows growing clamour for independence from the United Kingdom, which is being argued for by the Scottish government’s ruling party, the Scottish National Party.

    SOURCE http://www.moneymarketing.co.uk/investments/treasury-consults-on-scottish-gilts/1053441.article

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  • mark wadsworth says:

    Hee hee, nice one JackC.

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  • MW – I posted this last week on the GC generated thread that had German Bitch in the title which has since been pulled. I’m not sure in this Coalition Government that the right hand knows what the left hand is doing !

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  • mark wadsworth says:

    JackC, I’m quite indifferent on Scottish independence, if they want it, good luck to them and if not, that’s fine too.

    But before we even discuss Scotland issuing bonds, why don’t they address the bigger issue of whether the UK government would wash its hands of Lloyds-HOBS and RBS-NatWest and expect the independent Scottish government to prop them up and bail them out in future?

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  • MW – yep, let the people of Scotland decide. I wonder however if they need a bailout first to facilitate independence.

    On your second point its odd really because you have posted what I was thinking – RBS, what was Bank of Scotland and on a smaller scale Dunfirmline BS still need propping up.

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