tag:blogger.com,1999:blog-2249851329008146395.post2649726126115457824..comments2023-10-30T09:11:12.922-07:00Comments on Clouded Outlook: Banks ordered to lendAlice Cookhttp://www.blogger.com/profile/05753570123987780947noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-2249851329008146395.post-69565574345949409322008-11-07T08:35:00.000-08:002008-11-07T08:35:00.000-08:00Banks are far from insolvent; people are too obses...Banks are far from insolvent; people are too obsessed with the net capital/reserves figure attributable to shareholders. <br><br>Actually, in economic rather than legal terms (i.e. 'what would the position be if they were put into administration'), the banks now belong to depositors and bondholders (incl. HM Gummint and BoE). <br><br>And as banks' assets (mortgage advances less write offs) are broadly equal to total deposits/bonds (this is a simple question of bookkeeping) every £1 of deposits, bonds is matched with approx. £1 of mortgage advances less write offs (OK, with NR and B&B it might only be 80p or 90p for every £1 deposits, bonds, but hey).<br><br>Banks are, in other words, in rude financial health, the whole thing is a huge great scam.Mark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-2249851329008146395.post-3610072534858173922008-11-07T08:46:00.000-08:002008-11-07T08:46:00.000-08:00Alice,I'm in favor of NO government bailouts. ...Alice,<br><br>I'm in favor of NO government bailouts. NONE! Let the market sort itself out. <br><br>What do you propose?MABnoreply@blogger.comtag:blogger.com,1999:blog-2249851329008146395.post-91825023600610356912008-11-07T08:51:00.000-08:002008-11-07T08:51:00.000-08:00Putting the banks in a room and telling them to le...Putting the banks in a room and telling them to lend is not going to make them lend.<br><br>Unless the government discovers some real leverage or administrative power, it just won't happen.Nick von Miseshttp://www.blogger.com/profile/03985951853422897135noreply@blogger.comtag:blogger.com,1999:blog-2249851329008146395.post-85714436681897797872008-11-07T08:54:00.000-08:002008-11-07T08:54:00.000-08:00OK, let's tot up what we know at present: the ...OK, let's tot up what we know at present: the current financial situation is that of a credit bubble, which is deflating. Labour have just won a byelection, which suggests that there are still a lot of sawdust-for-brains voters out there who vote labour.<br><br>Brown is unexpectedly popular of late. Straw has been making silly noises about prisons. The banks have just been railroaded into pumping one last great splurge of cash into a deflating system.<br><br>Brace yourselves, folks, snap election ahoy!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2249851329008146395.post-48020904325957564552008-11-07T09:08:00.000-08:002008-11-07T09:08:00.000-08:00Nick, What you say is probably true, the the attem...Nick, <br><br>What you say is probably true, the the attempt to force banks to lend is shocking enough.vadonoreply@blogger.comtag:blogger.com,1999:blog-2249851329008146395.post-38524859479993682362008-11-07T09:09:00.000-08:002008-11-07T09:09:00.000-08:00mab - I am not in favour of bailouts. However, I b...mab - I am not in favour of bailouts. However, I believe it is necessary to nationalize the banks on a short term basis. Naturally, the shareholders should be wiped out and the existing management should be fired.<br><br>AliceAlice Cookhttp://www.blogger.com/profile/05753570123987780947noreply@blogger.comtag:blogger.com,1999:blog-2249851329008146395.post-6218786573111536492008-11-07T09:18:00.000-08:002008-11-07T09:18:00.000-08:00Alice, the solution to the economic turmoil in the...Alice, the solution to the economic turmoil in the near future may see Britain join the Eurozone. That way the wretches who claim to run this country can pass responsibility to someone else. This will not alter the fact that we are right in it. Not that some Briton's seem capable of noticing. We have declined so far I find it difficult to believe what I am seeing.Barrynoreply@blogger.comtag:blogger.com,1999:blog-2249851329008146395.post-65920195199114502452008-11-07T10:20:00.000-08:002008-11-07T10:20:00.000-08:00Alice,Naturally, the shareholders should be wiped ...Alice,<br><br><i>Naturally, the shareholders should be wiped out and the existing management should be fired.</i><br><br>That has merit, but it absolves the bondholders. <br><br>The existing bankruptcy rules still seem like the best solution to me. Equity and preferred shareholders are wiped out and bondholders take haircuts and either sell assets or recapitalise the commpany. Painful, but effective. <br><br>But what do I know, I still think the world is round.MABnoreply@blogger.comtag:blogger.com,1999:blog-2249851329008146395.post-10093719682785224262008-11-07T10:26:00.000-08:002008-11-07T10:26:00.000-08:00But what do I know, I still think the world is rou...<i>But what do I know, I still think the world is round.</i><br><br>Oops. I meant to say: But what do I know, I think the world is neither flat nor round, it's spherical.MABnoreply@blogger.comtag:blogger.com,1999:blog-2249851329008146395.post-91222530403853252092008-11-07T11:34:00.000-08:002008-11-07T11:34:00.000-08:00I'm just waiting to see what happens in the co...I'm just waiting to see what happens in the commodity markets in December when buyers try to take delivery of non-existent gold they've bought at purposely depressed prices. With the level of monetary inflation both here and the US, commodity prices are set to soar next year!Ricknoreply@blogger.comtag:blogger.com,1999:blog-2249851329008146395.post-22794311013920030632008-11-08T05:58:00.000-08:002008-11-08T05:58:00.000-08:00Brown has rolled the clock back sixty years. I am...Brown has rolled the clock back sixty years. I am now waiting for the government to start controlling prices. Ration cards anyone?TEDnoreply@blogger.com