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Re: I think i need EJ to walk me though this............
maybe they tryin to work out a deal with these people?? (seen on item above ;)Originally posted by Mega View Post
kind of a chuckle tho, that we didnt hear much from them (OWS) in the run up to 'the election' over here...
Occupy Wall Street campaigners buy-up debt to abolish it
The Rolling Jubilee project is seeking donations to help it buy-up distressed debts, including student loans and outstanding medical bills, and then wipe the slate clean by writing them off.
Individuals or companies can buy distressed debt from lenders at knock-down prices if it the borrower is in default or behind with payments and are then free to do with it as they see fit, including cancelling it free of charge.
As a test run the group spent $500 on distressed debt, buying $14,000 worth of outstanding loans and pardoning the debtors. They are now looking to expand their experiment nationwide and are asking people to donate money to the cause.
David Rees, one of the organisers behind the project, writes on his blog: "This is a simple, powerful way to help folks in need - to free them from heavy debt loads so they can focus on being productive, happy and healthy.
"Now, after many consultations with attorneys, the IRS, and our moles in the debt-brokerage world, we are ready to take the Rolling Jubilee program live and nationwide, buying debt in communities that have been struggling during the recession." -
Re: I think i need EJ to walk me though this............
It is an interesting idea.
I suspect the debt collection companies will scream unfair. They will have to pay more for their pound of flesh. They do not like paying up for their lamb chops.
I hate this whole debt-based society/monetary system. It is just not right.Comment
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Re: I think i need EJ to walk me though this............
ONE OF MY CITY CONTACTS HAS COME BACK:-
"From the Telegraph story:
Under quantitative easing (QE), the Bank has created £375bn of new money to buy government bonds – gilts – from pension funds, insurers and banks, with a nominal value of just £327bn
That's easy enough to understand
Andrew Lilico, an economist with Europe Economics, said that, by grabbing the surplus cash “the Treasury is essentially taking a £37bn dividend on a project that is £48bn in the red”.
The Treasury has taken £37 billion from the Bank of England. When they should have faced up to a loss of £48 billion.
George Osborne last week admitted that he may have to make payments to the Bank to cover future losses “as Bank Rate rises or capital losses crystallise”.
They now accept they shouldn't have... and may have to stump up the cash to cover the losses in the near future.
The mark-to-market value has been flattered by the UK’s safe haven status and the QE programme, which between them have pushed up demand for gilts and consequently raised prices. The latest accounts for the Bank subsidiary that manages QE show that the £287bn of assets purchased by February this year were £20bn in profit on a mark-to-market basis.
The QE program has artificially raised prices and the idiot trading algorithms are buying stuff they shouldn't (because the price is going up because of QE) which meant the Bank of England / Treasury made £20 billion when they really shouldn't have.
economists said the figure dramatically overstated the financial health of the scheme. “On a mark-to-market basis there will almost certainly be huge losses for the Treasury as QE bonds crash in price when interest rates rise
Tranlsation: Interest rates are going up. When they do, as they will, UK govt bonds will crash in price. This will be a massacre for the UK government bonds, starting no later than 2 years from now. Actual start date will be in weeks or months. Maybe by year's end.
The figures are likely to reinforce concerns that the Bank has compromised its independence by allowing the Treasury to take back the cash surplus. It is now dependent on an agreement with the Treasury for interest payments to be transferred back as bonds mature or are sold, and an indemnity to cover any future losses.
Translation: The Bank of England will have NO ******* HOPE of selling anything or of being believed in the future. The only buyer that will be available will be the Treasury and they only have QE to pay for stuff, so you'd better keep printing and hope interest rates don;t rise, because when interest rates do rise, your bond value will drop like a rock. Oh, look, an interest rate rise is around the corner!
Currently, the average yield on the portfolio is about 4pc – which the Treasury would be having to pay in full if the gilts were owned by the private sector. Instead, the Bank is paying just 0.5pc on the money created to buy the gilts and is handing the excess back to the Treasury. The excess is the cash surplus.
The average yield is not being paid - and someone will have to stump up huge sums of cash - or more likely bullion - to cover those differences. If the differences are not covered, the British government will be in technical default on it's foreign obligations. Default = bankruptcy.
However, if interest rates rise above 3pc, the cash position will reverse and the QE portfolio will start making a loss. The Bank has said it will raise rates before it starts selling gilts. On past trends, the cash surplus will not cover the £48bn nominal loss until April 2014. The Treasury has insisted that the move was merely a “cash management operation” and brings the UK into line with Japan and the US.
If - or rather when - interest rates rise above 3% the losses will just grow and grow FAST. Even if Interest Rates do NOT go up (ha ha ha, good joke) then they will face default on or around April 2014.
Simple, Mega. They have a year to sweat it out and hope for that year that interest rates do not rise (oh, stop LAUGHING) and some white knight rides to their rescue.
Stop laughing.
YESSSSSSSS
MikeComment
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Re: I think i need EJ to walk me though this............
taint all that funny magee....Originally posted by Mega View Post
it'll get even 'funnier' tho, over here - when the bernank starts buyin upBOE's problems too
on top of what he's already been buying from the EU....
which will prolly just drive the price of the shiny stuff further down (in the short term anyway) ?
oh that we might yet live long enuf to see 'less interesting times'
but methinks it'll get more before getting less 'interesting', eh meg?Comment
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Re: I think i need EJ to walk me though this............
I was on a 1st aid course this week, sat next to a nice bloke called "Andy"
Site Foreman, drives a BMW 3 series 320i..........
Does at prsent 600 miles a week, boss just told him he NOT happy paying his petrol (Gas) expenses.
It requires replacement & a new 3 Series Turbo-diesel would cost over £30,000........he not too sure about keeping his job, thus it no sale.
I asked him if he like to try a sub-compact frout wheel drive 1.6 diesel, VW are doing them for £15,000........He also threw up on me
;))
Tough sh1t
MikeComment
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