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Well our intrepid leaders are now thinking of printing some fake money.  :(
Oh that sounds like a spiffing idea. Why didn't anyone think of that before? Can we print Weimar Republic on the back?
http://www.timesonline.co.uk/tol/news/politics/article5516808.ece

Well David Cameron has said Gordon Brown is acting like headless chicken.

Perhaps as has been suspected before the politicans read this forum for ideas.

I liked the person's comment , the one who said if we did have a headless chicken it would be doing a better job.
And here are some truths from the Financial Services Coal Face.

Note that they are all not their real names as it is a discipliary offense to talk online about such things.

http://news.bbc.co.uk/1/hi/business/7829139.stm
Meanwhile, Mr Darling and Mr Brown going to offer the Banks insurance for their didgy dodgy assets.

Apparently a Toxic Asset is one for which there is no market, so its value effectively is zero because it is untradeable.   It is this sort of asset that HMG is going to offer to insure so that if a Toxic Asset has a book value of £100 the govt says we will bear £25 of your loss if it turns out to be worth only £50 when that asset falls due to be paid back - in return for a fee, of course.   So there will be no bad bank just yet.   Also, they thinking of using Northern Rock to do lending, which is another U-turn.

The Govt is offering to turn its preference shares in the Banks into Equity.   This has infuriated Lloyds wot was bullied into taking over the dreadful HBOS, because this would give HMG just over 50% of the shares.   RBS will probably go along with it.   It remains to be seen if Lloyds shareholders think paying something like £500 million a year in interest is worth it to avoid HMG being the majority shareholder.

I does not know where it will all end.   Nor does Creature.

:(  and Wergh.
Well I will sleep better nights knowing someone sensible and competent is looking after the economy!










In the meantime I better stock up on sleeping pills  :devil
I am despairing of anyone ever being able to stand up and tell truths. As I see them of course and I am all seeing and all knowing, you know this.

What we need is to STOP LENDING and REPOSSESS HOUSES of those who did not deserve to have them in the first place. Which is anyone who bought one in the last 10 years or who was under 25 when they got the mortgage.

Even the benefit system recognises this, you cannot get housing benefit under the age of 25 , why should people ever have been given mortgages at that age, it is a nonsense. Bring back the days of making people save for 5 years before touching them with a barge pole for a mortgage.

Keeping propping up the more lending more lending and helping  people not lose their homes stuff is MAKING IT WORSE. It needs to happen so that those who took the good times take the bad times they are responsible for.

Buying a home is tough. the first 10 years are the worst you need to give up everything else in life to be able to cope financially (this has not happened recently and where it has all gone horribly wrong) , the second 10 years you don't enjoy at all. After that you go into a bit of a decline.
Well, The Plan isn't really a Plan because the details have not been worked out.   They have not decided just how do you value an asset that nobody wants, how much the insurance premiums are going to be etc.

Apparently this scheme will not be up and running until April at the earliest.

It is all a dreadful mess, and the Market has responded by whacking down RBS shares by 2/3 yesterday, and Lloyds by 1/3.

The real need is to maintain working capital for companies.   The housing market will not recover until house prices are closer to what can be afforded on ordinary salaries and wages.   I agree with Furbs that it is silly to try to prop up house prices at unrealistic levels.

Wergh wergh wergh.  :(
Wergh indeed.

The value of an asset no one wants is zero. Isn't it?
As I said
Bring back the days of making people save for 5 years before touching them with a barge pole for a mortgage


And now
Writing in The Observer, the prime minister said he wanted people to save longer before buying a home and is considering curbs on 100% mortgages.


http://news.bbc.co.uk/1/hi/uk/7903985.stm

I should have a job advising the government really.
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