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Re: The Bank of England is about to get ROCKED!
So does anyone think the Bank of England will continue to be a "tough nut" or will it begin doing more like the Federal Reserve bank has begun doing?Jim 69 y/o
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Re: The Bank of England is about to get ROCKED!
From the article, my emphasis:Originally posted by Jim Nickerson View Post
There will be an effective nationalization, structured as a buyback and an option. Shareholders will be wiped out (if the losses occur, as they are near-certain to occur). Central banks will be left effectively owning the banks. Gosbank USA, Gosbank UK.More disconcertingly, it has become clear that the Bank's tool box for financial crises - fundamentally unchanged since Sir Montagu's days - is no longer up to the job....
"The nature of the market has changed," said Buiter. "In a relationship-based deposit banking system lender of last resort is key. In a transaction-based arm's-length system we need a market maker of last resort." In other words, central banks must take on the role of trading in financial instruments when no one else will.
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Governor's insistence this week that: "The risk of losses on their lending should remain with banks' shareholders. The banks neither need nor want the taxpayer to insure them against these losses."Comment
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Re: The Bank of England is about to get ROCKED!
I simply don't belive Merv much, he shot the line that he wouldn't cut rates, only for the minates of the meetings to show HE voted TWICE to cut them.
MikeComment
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Re: The Bank of England is about to get ROCKED!
Others suggest it could effectively buy securities, or lend unsecured, on the proviso that the credit risk is insured by the seller, perhaps by the credit default swap market or the so-called monoline insurers.
Ingenious.Comment
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