More people need to question ......

[HairyArsedBloke]

Dunno. I can't stand him, but I will definitely buy a copy.

Never trust a hippie.

[Moscow Mule]

Never trust a hippie.

Or a thin chef.

[oracleslave]

Cyberman for his inane rumblings on subjects he does not understand.

Is that irony? . I can't see the wood for the trees


Edit: I do agree though

[Cyberman]

The problem in my view was idiotic structure of NR and some other "banks" - ok, they stopped getting funding, what's the problem - stop issueing new morgages, fire all sales people and start counting money from existing morgage base (or losses from defaults). The real problem was that those clowns used shady offshore entities that required them to buy new morgages all the time! Now that became a problem as soon as funding dried up - whoever signed such contract should be in jail already, alongside those who created it in the first place (probably the same person). I'd throw into the same cell with those guys and guy named Rock also Cyberman for his inane rumblings on subjects he does not understand.

Atw, you just show by those comments that you do not know how the system works. Banks borrow short and lend long, and thus have to refresh their borrowings periodically on the moneymarkets. This is normal banking practise(and stopping lending would not have solved the lack of funds problem!!), but due to the US subprime fiasco(the Rock owns NO US subprime) the money markets dried up. This was nothing to do with the Rock whatsoever, but the Rock became a victim. It was then victimised again by HMG and the BofE by them refusing to act as Lender of the Last Resort, and ironically it has reversed its policy ever since!!!!

HBOS has now hit the same problem because it needs approx. 200 Billion pretty rapidly and that may not be forthcoming.

Before slagging me off, I suggest that you firstly educate yourself.

[ASB]

Banks borrow short and lend long, and thus have to refresh their borrowings periodically on the moneymarkets.

Are you suggesting then that NR had not securitised ANY of their loan book and sold it on? Could be the case, but UK lenders have been securitsing it in various ways since at least the early '90s.

[Platypus]

I suggest that you firstly educate yourself.

practice

[Cyberman]

Are you suggesting then that NR had not securitised ANY of their loan book and sold it on? Could be the case, but UK lenders have been securitsing it in various ways since at least the early '90s.

This has been the major cause of massive lending and US subprime exposure for our banks, by virtue of US banks selling on packages of mortgages to other banks and thus enabling banks to keep loans off book. The FSA and thus HMG allowed this to carry on and thus permitted banks to bypass lending controls. Our authorities are thus just as culpable as the banks for allowing the current mess to ensue.

[Bagpuss]

The only culpability is the policy of leaving interest rates too low for too long and stoking the furnace of a disasterous property bubble. When House price inflation was hitting double digits interest rates should have risen, it should have been nipped in the bud at least 5 years ago, when most sane people were thinking things had gone too far.

[Cyberman]

The only culpability is the policy of leaving interest rates too low for too long and stoking the furnace of a disasterous property bubble. When House price inflation was hitting double digits interest rates should have risen, it should have been nipped in the bud at least 5 years ago, when most sane people were thinking things had gone too far.

There should have been more stringent lending controls but Blair and Brown were obviously against this to sustain a credit-boom economy. They are both culpable here of creating an unsustainable mountain of debt.

[Bagpuss]

There should have been more stringent lending controls but Blair and Brown were obviously against this to sustain a credit-boom economy. They are both culpable here of creating an unsustainable mountain of debt.

The boom wouldn't have happened without it