Doomed

[Troll]

Lets see. Imagine you are the BoE and you have all these lovely machines that can print money, and a load of banks suddenly need to borrow billions of pounds.

How might you resolve this problem in a very short-termist way?

Hey that sounds strangely familiar!! are there any other countries that have done this?

But I expect it's all different this time because it's backed up by all that bullion in the BoE's vaults

[Troll]

Lets see. Imagine you are the BoE and you have all these lovely machines that can print money, and a load of banks suddenly need to borrow billions of pounds.

How might you resolve this problem in a very short-termist way?

Hey that sounds familiar!! any other countries done this? I expect it's all different this time because it's backed up by all that bullion in the BoE's vaults

[DimPrawn]

just as a tangent - anyone knows where the BoE got £25bn from to shore up
Northern Rock?

Lets see. Imagine you are the BoE and you have all these lovely machines that can print money, and a load of banks suddenly need to borrow billions of pounds.

How might you resolve this problem in a very short-termist way?

[NoddY]

just as a tangent - anyone knows where the BoE got £25bn from to shore up Northern Rock?

It's created from nothing. The oldest trick in banking - charge interest on money that never really existed.

[Troll]

Contractors mostly

not me matey... make yer gross your nett that's my motto

HTH

[Diver]

just as a tangent - anyone knows where the BoE got £25bn from to shore up
Northern Rock?

Contractors mostly

[Troll]

just as a tangent - anyone knows where the BoE got £25bn from to shore up
Northern Rock?

[TimberWolf]

But inflation is rocketing. If BoE cut interest rates, we'll just see an even bigger debt bubble form.

I'd settle for them sustaining the debt bubble for another year or so, 'cos then I'd have time to sell up and watch things go BOOM from a safe distance.

[Diver]

But inflation is rocketing. If BoE cut interest rates, we'll just see an even bigger debt bubble form.

Soon be lot's of cheap repossessed properties on the market for me then

[DimPrawn]

http://news.bbc.co.uk/1/hi/business/7120460.stm

Mortgage lenders have made a plea for the Bank of England to cut interest rates to shore up their finances.
The latest report from the Council of Mortgage Lenders (CML) warns that, "funding pressures have started to crystallise for a number of lenders".

It says their ability to borrow from other financial institutions is getting worse, not better.

The CML calls on the Bank of England to cut interest rates sooner rather than later.

If that gap cannot be made up by lenders borrowing in the wholesale markets then the mortgage tap may be turned off.

"Firms have various other options, including the ability to influence the volumes of new lending business they write in line with their funding pipeline," said the CML.

"But, the overall impact is to limit the availability of mortgage credit and to raise its cost for prospective borrowers," it warned.



But inflation is rocketing. If BoE cut interest rates, we'll just see an even bigger debt bubble form.