FSA warns on levels of UK mortgage debt

abaxas

RenovationMan wrote: »

So not too long then, in the grand scheme of things.

But where are they going to dump their toxic debt?

They didnt want it when things were booming, do you think they want it now?

julieq

The debt wasn't as toxic as feared. Worrying is an expensive hobby.

mbga9pgf

Say what? Might want to speak to the bondholders who lost their shirts with a 70% writedown in some RMBS writedowns....

Hence the reason why the government is still supporting a number of banks.

Thrugelmir

julieq wrote: »

The debt wasn't as toxic as feared. Worrying is an expensive hobby.

RBS lost £5.5 billion on its non core assets in 2010.

Generali

mbga9pgf wrote: »

Say what? Might want to speak to the bondholders who lost their shirts with a 70% writedown in some RMBS writedowns....

Hence the reason why the government is still supporting a number of banks.

Some of my clients hold CDOs valued at less than a cent vs original face value of $100. Some of the fall in value is due to principal payments having been made but most is due to them not being worth very much as the cash-flow that was predicted never materialised.

It isn't necessarily the current holders that took the loss. In fact it is likely that in many cases, US taxpayers took the losses which was nice of them.

abaxas

julieq wrote: »

The debt wasn't as toxic as feared. Worrying is an expensive hobby.

How can you tell? No-one knew what was in the boxes.

It would be like buying a nice cake from Waitrose, only to find out it's been substituted for a dog turd, or a diamond ring.

julieq

Thrugelmir wrote: »

RBS lost £5.5 billion on its non core assets in 2010.

But still not enough to create meltdown. It wasn't as bad as feared and the toxicity is no longer being generated. Worry is expensive.

Probably more dangerous to be exposed to housing debt in the Far East now anyway, and I expect many banks are. There's a thumping great crash on the way there.

StevieJ

mbga9pgf wrote: »

F*ck part P. the government are looking at scrapping it anyway. Yet another stealth tax and a means of trade bodies to generate revenue through extortionate registration fees.

Want to tell me how many DIYers have been prosecuted as a result of their own work?

Like fox hunting, legislation is pointless unless it is enforced.

I suppose it relates to how many have been killed and maimed. As you yourself commented.

We found partly melted twin and earth wrapped around the hot water central heating pipe... No problem, of course, if we had earth bonded pipework right?

Nope. Idiot hadnt even bothered connecting that. I wonder if the guy that lived here and bodged it last actually wanted his wife and kids?

mbga9pgf

Except the difference is, I know what I am doing, where as the previous owner didnt. Dont castigate all DIYers as bodgers, certainly those with relevant professional qualifications that exceed requirements but for beurocratic sakes, are not recognised by the LABCs.

Thrugelmir

julieq wrote: »

But still not enough to create meltdown. It wasn't as bad as feared and the toxicity is no longer being generated. Worry is expensive.

Probably more dangerous to be exposed to housing debt in the Far East now anyway, and I expect many banks are. There's a thumping great crash on the way there.

Meltdown is an emotive expression. The reality is that RBS is still in intensive care. With its share price currently around 41p reflects investor sentiment too. Recovery could still be blown off course by events outside of its control.