£75 Billion - Wheres it all Gone...?

#1
So far this year, and not including Northern Rock, The Bank of England has dished out some £75 Billion in loans to the Banks. But as the feckers are lending it out in mortgages or lending it to each other, as they don't trust each other, where the feck has it all gone...?

Maybe one of the City Boys/Girls on here might like to give us a heads up..!
 
#2
While they're at it (and I use the phrase 'at it' advisedly) they might want to explain why customers should have confidence in the stability of the British banking sector when clearly those self-same banks don't.
 
#3
I can hear the clattering of the printing press at the Royal Mint, printing all those £50 notes to keep the economy solvent, and baling out those banks!

Reichsmarks anyone?
 
#4
A question i would like to know is that in the last 10 years, possibly the best financial time we've ever had, and with record profits year on year how come one bad set of figures put these companies to the wall?

I know the answer, that profit has been removed through dividends, bonuses, wages and excesses. The real reason they're in trouble is through chasing higher profit margins in shorter timescales, things like the futures market, derivitives market, sub prime and other areas where they've lost big.
 
#5
Or perhaps just plain old double entry book keeping! Also that £75 billion is not the real worth of the assets thats just to cover the projected debt on the over inflated book price of the supposed assets...that it seems without exception the money markets just kept on selling and reselling the same risk all the while relabeling and re branding it, whilst knowing that as in a game of pass the parcel eventually there is only one chair left and one mahhosive box to open. But then that what happen when you bet that you can keep reselling debt, and get away with it.

Gosh i am so glad i did fashion :roll: instead of economics imagine if a fluffyheaded pink and fluffy girl like me was in charge of the books. 8O
 
#6
My worry is:

HBoS. Why?

H = Halifax, a town in the north. (Liarbour Land).

BoS = Bank of Scotland = the ogre Mr. Bean's own land (except Glasgow East and, shortly,Glenrothes).

As a tax-payer, I look forward to owning this outfit - a la Northern Rock. Luckily it is not:

BBoSE = Bournemouth and Bank of Southern England. That outfit would be allowed to sink - without trace.

To save this nation, this government HAS to be disposed of.
 
#7
If i remember back a while the government came up with this cash injection of tens of billions and stated that it would 'allow banks to lend to each other and then the general public'. I guess that last bit got a bit muddled when the dividends started flowing again.
 
#8
heard_it_all_before said:
So far this year, and not including Northern Rock, The Bank of England has dished out some £75 Billion in loans to the Banks. But as the feckers are lending it out in mortgages or lending it to each other, as they don't trust each other, where the feck has it all gone...?

Maybe one of the City Boys/Girls on here might like to give us a heads up..!
Try finding the ONE TRILLION quid Brown has 'lost'...(as Chancellor)

Also,the printing presses HAVE to go into overdrive (as someone mentioned) - due to NO credit or MONEY being available to lend..

As usual - Labour are useless on the Economy - always have been - Winnie said it in the early 50's - just as true today..

Batten down the hatches lads !!
 

Biped

LE
Book Reviewer
#9
Argee2007 said:
A question i would like to know is that in the last 10 years, possibly the best financial time we've ever had, and with record profits year on year how come one bad set of figures put these companies to the wall?

I know the answer, that profit has been removed through dividends, bonuses, wages and excesses. The real reason they're in trouble is through chasing higher profit margins in shorter timescales, things like the futures market, derivitives market, sub prime and other areas where they've lost big.
My bold.

Well, you see, it HASN'T been the best ten years we've ever had at all - it's all been a big fat LIE.

There's been more money available on the NEVER, NEVER than ever before. More cheap and easy loans, more cheap and easy mortgages, and the interest rates kept low to sustain it. Eventually, most peope borrowed all they could afford, and many others more than they could afford. The facade finally failed, the wall of mirrors finally cracked and lo and behold - the banks who rode the 'good times' lending out more than they had, and the gobment borrowing more than the taxpayer could afford, plus oil, gas and electricity profiteering brought the whole thing crashing down.

Now, the banks are blaming the people they punted their money out to (us) for taking the money on offer, we are all blaming the banks for lending out money when they should have seen the risks, and the gobment is in an 'action' gridlock with the blame starting to get dished out in all directions, apart from the gobment's of course - more likely, they'll do what everyone else is doing - blame the yanks. Bl00dy hell, it WAS all over the press 3 to 4 years ago about how the UK debt mountain was going to cause an economic landslide if circumstances changed.

Did the gobment listen? No, it borrowed loads more and asset-stripped the nation on top. Did the banks listen? Well, they knew damned well JUST how risky THEIR policies were, but carried on regardless. Did the UK people listen? Well, many did chew off more than they could afford, but the killer was the oil, gas, electric, taxes and food prices going through the roof. The main culprit for the British people running out of dosh to repay their loans and mortgages was of course oil/petrol prices. Why did those prices go up? Oh yes, Bush and Bliar starting a war.

So, back to the question, where's the 75 billion gone? It's sloshing around all over the place, and wherever it falls, it's making things look a little better in that particular bush-fire until it's moved on. Eventually the banks will swallow it all up, make some more people rich, and then they'll demand more while threatening the collapse of the banking system as the nightmare scenario. Broon (or his replacement) will (through the Bank of England) throw even more money around, alot of which is our tax money, a lot more of which is yet MORE international loans (that will keep us in the poor-house for many years while we repay them, but this time, with less and less North Sea Oil to pay it off quicker), and of course, they may indeed go down the 1930's Germany route of printing fcuk loads of money, thus devaluing the pound and creating runaway inflation.

Wonderful eh?
 
#10
I'm not very good at maths, that's why I'm not a fat banker :D .

But would any bankers like to answer this?

Haven't got a clue how many mortgages are held by people in the UK. But buy-to-lets and 2nd homes aside, can anyone work out how much would that give each mortgage holder if the £75 Billion was equally divided to them instead of the banks?
 
#11
roadster280 said:
Er, not much.

75,000,000,000 divided by the number of homes (say 37,500,000) is not a great deal. 2000 quid each. Even if the number of mortgages were half the 37.5M I chose to make the math easier, it's still only 4k each. A pittance in mortgage terms.
How many of those are 2nd homes and buy-to-lets though?
 
#12
heard_it_all_before said:
roadster280 said:
Er, not much.

75,000,000,000 divided by the number of homes (say 37,500,000) is not a great deal. 2000 quid each. Even if the number of mortgages were half the 37.5M I chose to make the math easier, it's still only 4k each. A pittance in mortgage terms.
How many of those are 2nd homes and buy-to-lets though?

Even at the peak there was around 300,000 mortgages given out in a year by banks and building societies, so if you break the £75 billion down into 300,000 that gives you £250,000 each, so the money pumped in could pay for the entire mortgage industry for a year easily, with enough left over for other things.
 
#13
Biped! big fat lie surly not, and of course we the punters are to blame, look at me i borrowed money to get the education that liabour all got for free.

People mortgage and re mortgage because the banks just are the poor innocent victims of the publics greed, and of course the poor government well they just had there hands full ensuring that tax breaks were available for all.

cynical! yes Angry very much so. because once again those who get us into these mess's will walk away scot free and well there assets wont be on the line.
 
#14
halo_jones said:
Biped! big fat lie surly not, and of course we the punters are to blame, look at me i borrowed money to get the education that liabour all got for free.

People mortgage and re mortgage because the banks just are the poor innocent victims of the publics greed, and of course the poor government well they just had there hands full ensuring that tax breaks were available for all.

cynical! yes Angry very much so. because once again those who get us into these mess's will walk away scot free and well there assets wont be on the line.
You didn't hear many complaints when they were gambling their money and the bonuses, dividends and payouts were high, everyone was happy as year on year profits were going up and everyone was getting something out of it. But as with many things there is a downside, when it arrived suddenly everyone is forgetting that these same high risk ventures had a downside and that when they go tits up the money has to be there to cover it.

They're now talking about the US government drawing a line in the sand and not helping out other companies that suddenly need help, so it may well get a lot worse, a lot faster.

One other thing that always makes me laugh though, when one of these companies does go to the wall the shareholders come running out asking for help, i always thought the shares market was a gamble, you could make a fortune or lose one, yet when something like Northern Rock or elsewhere goes there are calls from these shareholders groups for the government to give them money, do people who lose their weeks wages in Ladbrokes also have this way of getting their money back?
 
#15
halo_jones said:
Or perhaps just plain old double entry book keeping! Also that £75 billion is not the real worth of the assets thats just to cover the projected debt on the over inflated book price of the supposed assets...that it seems without exception the money markets just kept on selling and reselling the same risk all the while relabeling and re branding it, whilst knowing that as in a game of pass the parcel eventually there is only one chair left and one mahhosive box to open. But then that what happen when you bet that you can keep reselling debt, and get away with it.

Gosh i am so glad i did fashion :roll: instead of economics imagine if a fluffyheaded pink and fluffy girl like me was in charge of the books. 8O
are we related ?
 
#16
Dear Tone and his Bilge Rat Gorden kept the Price of Money cheap. Yes even money has its price.
By keeping interest rates low, Too low, the man in the Street was lead to think he could spend more money then in the Real World he could afford.
This bought Dear Tone Two more election victories for Economics Normally determine who will win, The Pound in your Pocket as good old Mr Wilson said.
Governments have a responsibility to the Voters to run the economy in a reasonable manner, but Labour Spin was what mattered and now the Crows have come home to roost on an empty shell.
john
From todays Times
" as the abandoned trading floors at Lehman Brothers tell us how extravagant Americans and Britons lived by the reckless accumulation of debt in the early years of the 21st century. "
 

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