Reply to: Government is now propping up the credit bubble

[sappatz]

sterling

Except this time the rate has been reduced to base rate (cheap borrowing for NR) and the BoE has underwritten all possible losses for the customers without limit. This has never happened before.

its not bakced by physical gold so basically the sterling is not even worth the paper its written on. you will soon discover this.
BTW the gold price is exploding currently

[Chugnut]

Cover up the mirrors in your house then.

[Bagpuss]

I apologise. I get angry when confronted with imbicilic morons.

Cover up the mirrors in your house then. Mr 'House price rises will go on forever'

[King Cnvt]

Don't get upset love, here have a tissue

I apologise. I get angry when confronted with imbicilic morons.

[Bagpuss]

Except this time the rate has been reduced to base rate (cheap borrowing for NR) and the BoE has underwritten all possible losses for the customers without limit. This has never happened before.

So you are wrong (as usual).

Don't get upset love, here have a tissue

[King Cnvt]

There is nothing new in this, the BoE has always had the borrower of last resort role.

Except this time the rate has been reduced to base rate (cheap borrowing for NR) and the BoE has underwritten all possible losses for the customers without limit. This has never happened before.

So you are wrong (as usual).

[AlfredJPruffock]

Well done Gordo !

Can our parents have their pensions back now ?

[Bagpuss]

The government has completely underwritten NR. This precedent is dangerous. Bankers like to take big risks to make big gains, but that risk taking is always tempered with the thought of bringing the bank down.

If BOE underwrite NR customers, it means the NR bankers can speculate wildly on the markets, chasing the biggest profits regardless of risk, since if it all goes tits-up, the BOE will pay all the depositors of the bank.

The bubble will now go super nova. Time to buy some more property, the BOE has underwritten all the risks.

Madness New Labour style.

There is nothing new in this, the BoE has always had the borrower of last resort role.

[Clippy]

Tony Bliar must be laughing his ass off.

The public won't have to think too hard as to who was Chancellor during the Labour Economic Miracle TM - that's right our current (elected) PM.

[AlfredJPruffock]

Gordo's in the basement
Mixing up the medicine

Alf's on the pavement
Thinking about the government

The Top man from Northen Rock
Badge out, laid off

Says he's got a bad cough
Wants to get it paid off

Look out kid
It's somethin' you did
God knows when
But you're doin' it again

You better duck down the alley way
Lookin' for a new friend
The man in Treasury
Gotta Big Printing Press
Wants eleven Pound Notes
You only got Ten

[milanbenes]

Sysman,

u da man

who'd have thought it eh that such a predicition could come true !

Milan.

[Sysman]

Not quite - the government has effectively said that if NR goes under during the current financial market situation, then they will nationalise it.

Good old fashioned socialist principles.

As I said here last April.

[NoddY]

...Obviously inflation is a way of eroding debt.

Only wage inflation erodes debt. Inflation is the decreasing value of money. People who sell their labour for money find their labour worth less.

[milanbenes]

no sappatz,

inflation is....

and our survey said...

t
a
x


I gotta say lads, this financial situation spectator sport is better than east enders


Milan.

[sappatz]

mugabe

I think we should get that nice Mugabe chap in to sort these things out, he understands how economies work.

Actually they will probably use the same recipe as mugabe, inflation, to sort it all.
Greenspan sees 10% inflation at least for the USD for the followign years.

Obviously inflation is a way of eroding debt.