We let it slip.

Discussion in 'Current Affairs, News and Analysis' started by smartascarrots, Sep 15, 2010.

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  1. BBC Link.

    Mervyn King places the blame for the recession firmly at the feet of 'the financial sector and policy-makers'. I notice he hasn't been more explicit in saying whether 'policy-makers' include the government of the day or are limited to the independent Monetary Policy Committee.

    My own suspicion is that the wheels would have come off the wagon regardless of who was holding the reins. What politician would have resisted the urge to buy votes with a blizzard of feel-good moments?
  2. [​IMG]

    'It was fuckall to do with me Guv!'
  3. If anyone is looking to who actually started the ball rolling it was these:-[​IMG]
  4. They may have started the ball rolling but it was other people's choices that determined how far it rolled. Nobody forced credit onto the populace just as nobody forced banks to rely on self-certification of income before lending.

    Neither a borrower nor a lender be, but if you have to be either then make damned sure you do your due diligence.
  5. At most, King was saying, "It was fuckall to do with him Guv!" although even that isn't clear from his remark - hence my point about the lack of clarity in 'policy-maker'.
  6. So Mervyn King decided a contrite attitude might cut some ice with the TUC. The financial sector fcuks up and the lowly masses pay the price - business as usual then. Too much greed and no one thought to look beyond their next bonus payment. It struck me as odd all those years where investments were doing shite, endowment mortgages were failing and yet fund managers/bankers were getting ridiculously high bonuses for what? The credit system in this country was spiralling out of control and the property market was just ripe for its bubble to be burst. So "We let it slip" is a bit of an understatement!
  7. Lloyds have heard of that saying, but their not sure what it means :)
  8. Behind it all....... three little letters and a deceptively simple name.

    I M F

    The World Bank

    Say no more.
  9. But then, if you have a medium-range car in the drive of your medium-affordable shack, and your mediumly attractive shag is only mediumly nagging and your mediumly intelligent kids are doing mediumly well at a medium-level school, who the **** cares, eh?
  10. Sometimes Ciggie can be mediumly on the button.
  11. Thank you, Sir, I take that as a high-level compliment, in a medium sort of way.
  12. I have commented on this before within these hallowed Fora, but since I have **** all to do and my brain is on Lima time but the rest of me is in UK... Back in 2001 I think it was, I was being exhorted by all kinds of money lenders to re-mortgage, release the equity in my home etc. So I enquired and was told that I could borrow up to 4.5 times my annual income, even more in some cases. But around the same time, I was receiving somewhat disturbing letters from HSBC about my endowment policy not being sufficient to cover the mortgage upon maturity. So it didn't take the brains of an Archbishop (dominus phobiscum) to work out that things were going to go awry in the future with ones personal finances should one: a. Borrow more than one could afford to pay back in the longer term, and, b. Not be able to cover your arrse adequately with insurance.

    edited to add: So if I had misgivings about the way credit and debt was heading back then, why didn't those who are far more financially astute than I?
  13. rampant

    rampant LE Reviewer Book Reviewer

  14. Ah yes thanks for reminding me, I haven't seen that in years. Time for another read I think.
  15. The issue was financial technology. The BoE and FSA couldn't spell Collateralised Debt Obligation, let alone understand how they were priced.

    ALL banks were pushed by shareholders (yes, the same pension funds that are acting for you as policyholders and in your "best interests") to increase profits through increasing complexity........and those same pension funds bought (and still own) the vast majority of these complex assets.

    Believe me, very, very little of this had to do with greedy bankers.