The UK Bailout

HenryTo · Posted: Sat Jan 17, 2009 1:34 pm Post subject: The UK Bailout

The UK Treasury to announce a £200 billion "fund" to buy up the toxic assets in British banks, and a further £100 government "loan" to help spur lending within the country. Word is that this plan will be announced early next week:

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/4274083/200bn-to-save-banks-from-bad-debt.html

rffrydr · Posted: Thu Mar 11, 2010 7:29 am Post subject:

Measure of finance? Euro Sterling:

http://tinyurl.com/yl84sqr
_________________
Today is the Tomorrow you worried about Yesterday!

rffrydr · Posted: Tue Mar 02, 2010 2:27 pm Post subject:

The bond-vigilantes have been resurrected in UK. The question is have they already seen their time on the stage here? I think that's probably the case.

http://www.ft.com/cms/s/3/ba4eb78c-25de-11df-b2fc-00144feabdc0.html?nclick_check=1
_________________
Today is the Tomorrow you worried about Yesterday!

diesel · Posted: Thu Mar 12, 2009 5:24 am Post subject:

http://money.ninemsn.com.au/article.aspx?id=770281

The UK is going for the title of the first nation to reach prosperity through the printing press. I get the feeling this is not going to end well......
_________________
All cats are gray in the dark.

HenryTo · Posted: Sun Mar 08, 2009 3:03 am Post subject:

UK set to bail out a significant chunk of its North Sea oil industry:

http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article5864480.ece

rffrydr · Posted: Tue Jan 20, 2009 8:33 pm Post subject:

rffrydr · Posted: Mon Jan 19, 2009 8:25 pm Post subject:

http://www.ft.com/cms/s/0/a8f98bb4-e65c-11dd-8e4f-0000779fd2ac.html

...or it could be the other way around.
_________________
Today is the Tomorrow you worried about Yesterday!

diesel · Posted: Mon Jan 19, 2009 7:01 pm Post subject:

I see the US is contemplating something similar to this. What they hope to do is take the entire subprime derivatives trash heap and place these sins on top of these "Bad Banks" and then drive it away into some accounting black hole where it is supposed to starve to death or die of lack of liquidity. This "Bad Bank" doors will then be slammed shut. Locked and never evaluated, never examined, never accessed, never thought about.

In the meantime the US is rewriting mortgages so they are 30 years at 3.5% interest despite long bonds being unsellable in the real world. No one is buying the new US mortgages, either. That would be STUPID. So, who is buying this trash?

Its the Bad Bank of course! It will soak up all these new mortgages and then, as most of them will default, anyway, it will quietly permit this since the Bad Bank doesn’t give out mortgages. It accepts mortgages. This is hilarious because if it is accepting mortgages, then it must be ‘capitalized.’ And this means, it has to have enough Sovereign Wealth to cover losses. Only it is a BAD BANK and ignores losses. Needless to say this aint going to end well....
_________________
All cats are gray in the dark.

rffrydr · Posted: Mon Jan 19, 2009 10:16 am Post subject:

Not at all received well judging by market reaction (characteristic understatement): Let's pin that on low volumes, Ireland, release of short trade, and currency epiphany.
_________________
Today is the Tomorrow you worried about Yesterday!

rffrydr · Posted: Mon Jan 19, 2009 6:57 am Post subject:

Is this the "bad bank"?:

http://ftalphaville.ft.com/blog/2009/01/19/51310/boe-becomes-the-bad-bank/
_________________
Today is the Tomorrow you worried about Yesterday!

HenryTo · Posted: Sun Jan 18, 2009 1:59 pm Post subject:

More details of the UK's rescue plan - to be announced before the London market opens on Monday:

http://www.ft.com/cms/s/0/c3237d38-e55d-11dd-afe4-0000779fd2ac.html