Thursday, August 7, 2008

Alice's bubble wrap

Thanks for the suggestions, but I really liked "bubble wrap, so a special thanks to David Worth, who came up with it.

So what despair and misery did today offer?

A stamp duty cut won't help

The government got such a kicking in the press that I very much doubt that this idea has any legs. Krustie seems to be on her one on this one.

A 40 percent rise in repossessions

"The number of repossessions rose to 9,152 from January to March, up from 6,471 in the same period last year, according to figures published by the Financial Services Authority." It has begun......

UK needs a US-style housing market rescue plan

Since we followed all the US mistakes on the way up, why not do the same on the way down....

No private equity bail out for US bank

Over the weekend, the New York Times reported that private equity firms had offered to rescue ailing US banks on condition that ownership regulations were eased up. Today, the US deposit insurance corporation turned down a private equity rescue bid for one clapped out US bank.

After the binge

A nice article from the Telegraph on the housing crash winners and losers.

Florida banks in danger

It has become the latest parlour game in the US, name the next financial institution to go down in flames.

Pub company goes under

Another parlour game; count the number of local pubs i your area that have disappeared in the last five years.

More trouble for Citi

This time, the SEC orders a huge buy-back of auction-rate securities that Citi palmed off on hapless investors. For Citi, it is one more step closer to the precipice.

Fractional reserve banking

The root of all evil, at least in its modern form.

Swedish inflation at 4.4 percent

Inflation is everywhere. Ignore it at your peril and don't be taken in by this central bank inspired rubbish about deflation.


  1. You chose the right name for your post though I think 'Bubble Rap' would have been better - I have you down as a urban/street kinda chick.

    Perhaps you should start blogging in Jamaican patois.

  2. Thanks for the suggestion Kevin, but blogging in Jamaican patois? I wouldn't know where to begin.....

  3. "Since we followed all the US mistakes on the way up, why not do the same on the way down...."

    I'd go further. See my post of fractional reserve banking yesterday.

  4. With a nod towards Byron, Keats ... and a certain Puff Diddy

    Ahem ...

    We follows dem up
    We follows dem down
    Da Yoo-Kay needs a Yoo-Ess market rescue plan

    Da MPC guys holds da interest rate

    Dat geeza Darlin' won't give a date

    Relief on stamp dooty will have to wait

    So we just shakes our booties and gyrate

    CHORUS(Everybody join in)

    We follows dem up
    We follows dem down ...

    Booyakasha ! West Siiiide


  5. After much thought I must say that I disagree with the criticisms of fractional reserve banking. What are the alternatives? If you try to do away with a regulated system of fractional reserves, you'll just get no-reserve underground banking.

    The soviets couldn't control money growth, no matter how hard they tried. If you try to restrict money supply growth, all you'll get are black market financiers, and money substitutes. In Soviet Russia de facto money growth happened via IOUs and travel vouchers and food tickets etc.

  6. deflation is mroe than a distinct's what you haev when there is massive destruction of stored wealth.
    mish does it justice
    have a read

  7. And if the currency slides, the Brits may find everything more expensive: Is the pound is sliding already?

    B. in C.

  8. Just listen to this chap from CML - the mortgage "products" were affordable at the time; the issue is that people may have overstretched themselves with other loans (!!), and hidsight is of course a wonderful thing....

    B. in C.