bank of england in 50 billion pound bank payout - U2 Feedback

Go Back   U2 Feedback > Lypton Village > Free Your Mind > Free Your Mind Archive
Click Here to Login
 
 
Thread Tools Search this Thread Display Modes
 
Old 04-21-2008, 04:34 PM   #1
ONE
love, blood, life
 
Zoomerang96's Avatar
 
Join Date: Jun 2000
Location: canada
Posts: 13,459
Local Time: 01:46 PM
bank of england in 50 billion pound bank payout

yes, that's right.
50 billion pound payout.

http://news.bbc.co.uk/2/hi/business/7357880.stm

Quote:
Under the scheme, banks will be able to swap potentially risky mortgage debts for secure government bonds to help them operate during the credit squeeze.

Mr (Alistair) Darling said it would "help resolve" problems in credit markets and make life easier for would-be borrowers.
he later says the uk financial system remains "fundamentally sound".

i suppose the best part of all this, is that this programme is only for mortgage debts on banks' books at the end of 2007, and the swaps cannot be used to finance new lending.

that's what most curious to me. housing debts are not really a new thing anymore, but what i rarely hear anything about is whether banks are actually correcting themselves in this regard. one is led to assume that they have no choice... but their obscene lending practices (the united states in particular, and canada perhaps as well) were bad enough to begin with, so who knows if they even have the capacity to correct their wrong-doings.

what you reckon financeguy?
__________________

__________________
Zoomerang96 is offline  
Old 04-21-2008, 04:49 PM   #2
ONE
love, blood, life
 
financeguy's Avatar
 
Join Date: Dec 2004
Location: Ireland
Posts: 10,122
Local Time: 08:46 PM
I wouldn't really describe this as a payout, or indeed a bailout!

It's banks exchanging debt of varying quality (in some cases, the debt is of very good quality) for government bonds (i.e., good as cash), but at a high risk premium.

As I understand it if, for example, a bank were to provide £100 of AAA-rated UK residential mortgage-backed securities, it would, depending on the specific characteristics of the assets, receive somewhere between £70 and £90 of Treasury Bills.

See, for example, this discussion:-

http://www.thepropertypin.com/viewtopic.php?t=9210
__________________

__________________
financeguy is offline  
Old 04-22-2008, 06:40 AM   #3
ONE
love, blood, life
 
Zoomerang96's Avatar
 
Join Date: Jun 2000
Location: canada
Posts: 13,459
Local Time: 01:46 PM
Quote:
Originally posted by financeguy

As I understand it if, for example, a bank were to provide £100 of AAA-rated UK residential mortgage-backed securities, it would, depending on the specific characteristics of the assets, receive somewhere between £70 and £90 of Treasury Bills.
is that a good ratio in your opinion... or will this cause more trouble down the road?
__________________
Zoomerang96 is offline  
Old 04-22-2008, 03:32 PM   #4
Rock n' Roll Doggie
ALL ACCESS
 
vaz02's Avatar
 
Join Date: Apr 2006
Location: manchester
Posts: 7,447
Local Time: 07:46 PM
I have as much faith in our chancellor as i do the chocolate kettle i bought my mother.
__________________
vaz02 is offline  
Old 04-22-2008, 03:37 PM   #5
ONE
love, blood, life
 
financeguy's Avatar
 
Join Date: Dec 2004
Location: Ireland
Posts: 10,122
Local Time: 08:46 PM
Quote:
Originally posted by vaz02
I have as much faith in our chancellor as i do the chocolate kettle i bought my mother.
Darling is clearly utterly clueless. Fortunately, he isn't calling the shots.
__________________
financeguy is offline  
Old 04-22-2008, 03:37 PM   #6
ONE
love, blood, life
 
financeguy's Avatar
 
Join Date: Dec 2004
Location: Ireland
Posts: 10,122
Local Time: 08:46 PM
Quote:
Originally posted by Zoomerang96
is that a good ratio in your opinion... or will this cause more trouble down the road?
At the risk of copping out of the question, it's probably too early say.
__________________
financeguy is offline  
Old 04-22-2008, 04:17 PM   #7
Rock n' Roll Doggie
ALL ACCESS
 
vaz02's Avatar
 
Join Date: Apr 2006
Location: manchester
Posts: 7,447
Local Time: 07:46 PM
Quote:
Originally posted by financeguy


Darling is clearly utterly clueless. Fortunately, he isn't calling the shots.
Ironic really, Brown made his rep on providing the UK with a flourishing and prosperous economy ( which gained him the support from the party to propel him into PM ) but as the greater public now know it was all smoke and mirrors. Just the type of crap we have come to expect from nu-labour.

On a different topic. Labour wont win the next general election with Brown in office thats a dead cert im sure we can all agree, so who would you like to replace Brown ?

Ive always liked Jack Straw or Alan Johnson but no doubt we would get Harriet Harmen.
__________________
vaz02 is offline  
Old 04-23-2008, 12:06 PM   #8
Rock n' Roll Doggie
 
1stepcloser's Avatar
 
Join Date: Dec 2004
Location: Toronto, ON
Posts: 3,764
Local Time: 08:46 PM
Quote:
Originally posted by vaz02

so who would you like to replace Brown ?


seriously though, i've lost faith with labour, don't like the tories and the lib dems are a wasted vote pretty much.

i think brown is too stubborn to resign as PM, even if labour are doing badly in the polls. he's waited this long for his chance so he won't give it up without a fight.

i don't think i've seen a more dour man in such a position of power. cameron rips him to shreds every week on PM's questions.
__________________
1stepcloser is offline  
Old 04-23-2008, 04:49 PM   #9
Rock n' Roll Doggie
ALL ACCESS
 
vaz02's Avatar
 
Join Date: Apr 2006
Location: manchester
Posts: 7,447
Local Time: 07:46 PM
I enjoy pm's questions so much, Blair was such a natural when he was at the box.

I dont want to vote tories because being a northerner they totally fucked us guys up for years, lib dems are not really serious contenders and they dont particularly sell policies well, im currently a disillusioned labour supporter. I might vote an independent purely out of protest.
Hopefully the labour party will be up in arms after the results of the local elections next week, any chance of the results being delayed mr Brown ? .....
__________________

__________________
vaz02 is offline  
 

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



All times are GMT -5. The time now is 02:46 PM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Design, images and all things inclusive copyright © Interference.com