U.S Lenders "Face state takeover"

ultra10

http://news.bbc.co.uk/1/hi/business/7601701.stm

Can you believe it, its almost like Nationalising the whole u.s mortgage industry !!! :eek: ... wonder if there will be any more failures in the u.k

WTF?_2

ultra10 wrote: »

http://news.bbc.co.uk/1/hi/business/7601701.stm

Can you believe it, its almost like Nationalising the whole u.s mortgage industry !!! :eek: ... wonder if there will be any more failures in the u.k

It's a given - all the problems so far stem from the US. The UK banks have yet to be hit by a large amount of UK defaults which will attack their already weakened capital bases.

There's an argument to be put that the US banks are better placed as they are well into their house market collpase. The European and UK banks will have to deal with their malinvestments in the US as well as their own local housing market and economic problems coming down the line.

ad9898_3

ultra10 wrote: »

http://news.bbc.co.uk/1/hi/business/7601701.stm

Can you believe it, its almost like Nationalising the whole u.s mortgage industry !!! :eek: ... wonder if there will be any more failures in the u.k

Oh No !!!! Gordy will be thinking wow what a great plan, I must ring Alistiar to see if hes got.... mmm about £800billion, if not, next up will be Mystic Merv at the BoE "Merv get printing we are going to need lots of cash, George Dubya has come up with an astonishing plan". Can you honestly imagine how low a persons intelligence must be to go along with anything George Dubya does............oh yes I can Tony Blair.

Prepare for your average loaf of bread to hit about £10.:j, happy days. NOT

tomstickland

It was headline news on R4 this afternoon.
Nothing a few Green shoots can't fix though.

baby_boomer

British Banking Association agrees with the Governor of the Bank of England that the UK government should not guarantee UK mortgages

Not that the banks don't want to extend the existing £50bn of government support :rotfl:

"....Less welcome to the Bank of England, however, may be the BBA's enthusiasm for extending the Bank's Special Liquidity Scheme, which allows banks to swap unmarketable mortgage- backed securities for gilts. "We think that is the way to go," said Ms Knight. "That is enhancing what a central bank does, it's not government intervention."

Interesting. How does the use of £10bns of taxpayers' money NOT count as government intervention? It sounds like they want the money, but not any controls on their activities.

WTF?_2

baby_boomer wrote: »

British Banking Association agrees with the Governor of the Bank of England that the UK government should not guarantee UK mortgages

Not that the banks don't want to extend the existing £50bn of government support :rotfl:

"....Less welcome to the Bank of England, however, may be the BBA's enthusiasm for extending the Bank's Special Liquidity Scheme, which allows banks to swap unmarketable mortgage- backed securities for gilts. "We think that is the way to go," said Ms Knight. "That is enhancing what a central bank does, it's not government intervention."

Interesting. How does the use of £10bns of taxpayers' money NOT count as government intervention? It sounds like they want the money, but not any controls on their activities.

Of course - Privatise the Profits, Socialise the Losses. The mantra of the banking industry.

Whilst other businesses go to the wall as a result of the recession brought on by the banks' policy of loony lending (eg. enterprises like manufacturing goods for export) there will always be hundreds of billions of pounds of public money available to bail out the banks from the consequences of their actions. 'twas ever thus.

pickles110564

ultra10 wrote: »

http://news.bbc.co.uk/1/hi/business/7601701.stm

Can you believe it, its almost like Nationalising the whole u.s mortgage industry !!! :eek: ... wonder if there will be any more failures in the u.k

Seems like a very good idea, Broon will be able to set interest rates at say 1% then everyone will have no problem paying back what they owe.

WTF?_2

pickles110564 wrote: »

Seems like a very good idea, Broon will be able to set interest rates at say 1% then everyone will have no problem paying back what they owe.

They may well have a problem paying 5 quid for litre of petrol and 10 quid for a loaf of bread though :rotfl: