asterisk2a + lending   59

Britain’s economy is broken. We desperately need new ideas | Tom Kibasi | Opinion | The Guardian
If the country was economically bankrupt in 2010, it is intellectually bankrupt in 2017. On the eve of the general election, politicians of all parties have rarely been so devoid of progressive ideas [...] Yet in substance, May’s approach remains mere tinkering at the edges of economic policy. The Conservatives remain stubbornly allergic to – or ignorant of – Keynesian macroeconomics. [...] [and housing and real estate lending distorting the lending picture. houses are not productive! R&D, and firms are. and creating long-term jobs w real incomes to spend (not remortgaging your home bc of housing bubble]
Brexit  GE2017  London  Housing  Bubble  piggybank  Forex  British  Pound  recovery  GFC  Manufacturing  Services  Consumerism  Zombie  Austerity  underinvestment  confidence  fairy  Productivity  output  gap  QE  ZIRP  NIRP  banking  investment  distortion  lending  property  UK  Living  Standard  wage  income  growth  inflation  £ 
june 2017 by asterisk2a
"Deutsche Bank Poses The Greatest Risk To The Global Financial System": IMF
via Keister Report - https://youtu.be/fbh3rndGDN8 // a Italian banking crisis could topple them. that is why they (their economist) called for a EU bank bailout (shore up). //&! IMF Warns Of "Global Contagion" From Italy's Bank Crisis; Forecasts Two-Decade Long Recession - http://bit.ly/29sFINn - [...] "Unless asset quality and profitability problems are addressed in a timely manner, lingering problems of weaker banks can eventually weigh on the rest of the system," //&! http://www.zerohedge.com/news/2016-07-09/charting-epic-collapse-worlds-most-systemically-dangerous-bank //&! Analyst Warns Deutsche Bank's Problems May Now Be "Insurmountable" - http://bit.ly/29LwUjv - [...] we believe DBK is still over 40x levered. [...] Seeking outside capital is also likely to be difficult as management would likely find it hard to offer any type of return on new capital invested. //&! its known balance sheet - http://bit.ly/29usGKG - 1.74 trillion balance sheet!
Italy  Germany  derivatives  Deutsche  Bank  BuBa  BaFin  Wolfgang  Schäuble  Angela  Merkel  investment  banking  systemic  risk  systemicrisk  systemrelevant  systemrelevanz  European  Bank  Supervision  stresstest  contagion  repo  trust  sovereign  debt  crisis  PIGS  Greece  Brexit  non-performing  loan  zombie  banks  zombie  austerity  secular  stagnation  recession  ECB  MarioDraghi  ZIRP  NIRP  QE  hunt  for  yield  asset  allocation  distortion  OMT  LTRO  Basel  III  Basel3  leverage  banking  union  Bank  Oversight  banking  crisis  banking  system  interbank  lending  overnight  deposit  facility 
july 2016 by asterisk2a
Brexit und Italien-Krise: Euro-Gruppen-Chef schließt neue Bankenrettung aus
[ EXPOSURE TO ITALY BANKS ] Euro-Gruppen-Chef Jeroen Dijsselbloem lehnt ein neues Bankenrettungsprogramm ab. "Die Probleme müssen in den Banken geregelt werden", sagte der Niederländer beim Treffen der Eurofinanzminister am Montag in Brüssel. Die Einfachheit, mit der einige Banker mehr öffentliche Gelder forderten, um ihre Probleme zu lösen, sei problematisch. "Das muss ein Ende haben." // http://www.welt.de/finanzen/article156924408/Deutsche-Bank-Chefoekonom-fordert-150-Milliarden.html - Der Kursrückgang bei Bankaktien sei nur das Symptom eines viel größeren Problems, nämlich einer fatalen Kombination aus schwachem Wachstum, hohen Staatsschulden und einer Nähe zur gefährlichen Deflation.
contagion  European  integration  banking  union  Wolfgang  Schäuble  Italy  Germany  repo  Brexit  secular  stagnation  austerity  ECB  European  bank  bailout  systemic  risk  systemicrisk  systemrelevant  systemrelevanz  European  Supervision  reflate  reflation  bank  restructuring  Oversight  MarioDraghi  Mark  Carney  trust  interbank  lending  interbank  market  overnight  deposit  facility  deflation  deflationary  sovereign  debt  crisis  PIGS  Greece  Angela  Merkel  UK  economic  history 
july 2016 by asterisk2a
Andrew Mazzone Interviews James K. Galbraith
banks like property! more likely to lend to finance property than SME/SMB investment. because that investment is not propped up by the government. [...] min 6 subprime & credit bubble since 80's << behaviour of lenders [...] sensible people were given fraudulent debt instruments (no self-regulation, and regulators failed). [...] no prosecution because people who should have prosecuted those, didn't want to ruin their private future career. [...] min 15 - inequality and unemployment driven by inequality. [...] austerity is name of the game by the "establishment" - 20% of society that benefited from the bank bailout and reflation policy by central banks - [...] 19:15 - who do banks want to borrow in this environment?! austerity, aggregate demand shortfall, lack of confidence, volatility, uncertainty, credit bubble pain (liquidity trap) etc. [...] Solution ("an alternative way to the status quo, who made this mess): Fix Income Distribution thus Purchasing Power (aggregate demand, ie minimum wage), and restructure finance away from investment banking and speculation and derivatives towards real economy (ie tax heavily what is not real economy business) //&! James K. Galbraith on "Inequality and Instability: What's Ahead for the World Economy" - youtu.be/Mw4Bd9ols-E //&! James K. Galbraith - "The End of Normal" - youtu.be/PGFcB65l8Io
Gini  coefficient  income  distribution  1%  10%  20%  Super  Rich  property  bubble  London  rentier  rent-seeking  Help  to  Buy  Scheme  Help  to  Save  Funding  for  Lending  Scheme  underinvestment  infrastructure  investment  secular  stagnation  western  world  UK  USA  European  Union  deflation  deflationary  JAMESGALBRAITH  book  James  Kenneth  Galbraith  credit  bubble  credit  card  credit  card  debt  credit  boom  debt  servitude  speculation  speculative  bubble  speculative  bubbles  equity  bubble  reflate  reflation  GFC  recovery  austerity  Raghuram  Rajan  self-regulation  squeezed  middle  class  working  poor  Precariat  subprime  Wall  Street  regulation  regulators  Career  Politicians  politician  No  Representation  aggregate  demand  aggregate  demand  short-fall  liquidity  trap  retail  banking  investment  banking  ZIRP  NIRP  QE  Richard  Koo  inequality 
july 2016 by asterisk2a
Keiser Report: Your Special Brexit Coctail (E932) - YouTube
// housebuilding shares hammered. property funds close redemption possibility bc of too much redemption - bank run - funds have to sell some investments at a loss to repay investors. // what is weighting UK economy is too much debt to gdp (bank bailout), consumer credit (boe sounded alarm bells before brexit vote) and too much leverage. //&! Planet Ponzi Paperback (2012) by Mitch Feierstein //&! UK better out w problems of PIGS, Italy, and banking problem.
Brexit  ZIRP  NIRP  QE  asset  allocation  property  bubble  speculative  bubble  speculative  bubbles  mortgage  market  City  of  London  RBS  BOE  Mark  Carney  Help  to  Save  Help  to  Buy  Scheme  Funding  for  Lending  Scheme  Right  to  Buy  distortion  George  Osborne  David  Cameron  Centrist  austerity  Housing  Crisis  Conservative  Party  book 
june 2016 by asterisk2a
Keiser Report: Sovietization of capitalism (E723) - YouTube
BIS 100% of private debt and finance sector larger than 3.9% of economy bad ... and siphoning off talent from more productive fields of work. And finance favours lending to property and land (low productivity). [...] financial products (derivatives) do not help economy. is just a financial product, fee collection. rentier! rent-seeking behaviour! fees fees fees. (JP Morgan, 89% of profits, see interview) [...] QE reflated asset prices/share prices! // In the second half, Max interviews David Graeber about his new book, The Utopia of Rules: On Technology, Stupidity and the Secret Joys of Bureaucracy.
private  debt  consumer  debt  household  debt  BIS  Wall  Street  recovery  zombie  banks  car  loan  credit  card  debt  student  loan  debt  student  loan  Bubble  student  debt  economic  history  GFC  secular  stagnation  UK  City  of  London  USA  investment  banking  retail  banking  BOE  Fed  macroeconomic  policy  microeconomic  policy  property  speculative  bubbles  speculative  speculation  productivity  output  gap  austerity  George  Osborne  dogma  ideology  constituency  Party  Funding  vested  interest  interest  groups  mortgage  market  Housing  Crisis  Help  to  Buy  Scheme  Help  to  Save  Funding  for  Lending  Scheme  Right  to  Buy  Buy-to-Let  subsidies  subsidizing  derivatives  financial  product  rent-seeking  rentier  QE  ZIRP  NIRP  reflate  reflation  Mark  Carney  fiscal  policy  monetary  policy  Richard  Koo  book  David  Graeber  MervynKing 
march 2016 by asterisk2a
Money: The Too Big to Fail Edition by Panoply Media
Neil Irwin, author of The Alchemists: Three Central Bankers and a World on Fire, joins hosts Felix Salmon of Fusion, Cathy O’Neil of mathbabe.org, and Slate’s Moneybox columnist Jordan Weissmann. This week is all about Neel Kashkari of the Minneapolis Fed's new solution for our too-big-to-fail banks. //!& breaking up has complexity ... financial-industrial complex! //
too  big  to  bail  toobigtofail  TBTF  retail  banking  investment  banking  VAR  discounted  risk  systemicrisk  discounting  risk  BIS  centralbanks  liquidity  trap  GFC  financial  product  recovery  TARP  UK  USA  Europe  sovereign  debt  crisis  PIGS  economic  history  book  monopsony  oligopoly  oligopol  repo  interbank  lending  complexity  financial-industrial  complex  leverage  derivatives 
march 2016 by asterisk2a
Five issues that will shape the Northern Powerhouse - BBC News
[ white elephant! lol & the double standard of Google paying 2% tax vs small businesses full 18%+ and not getting investment, R&D loans ] Will Hull thrive or suffer if transport is radically improved to the eastern fringe of the Powerhouse? There's no way of telling. Some people think investment in skills, education and training would be a more certain way of improving productivity - and business leaders are keen to ensure that these key elements are not forgotten in the rush for steel and tarmac. I asked former CBI director-general John Cridland, who is now head of Transport for the North, if there was any certainty that spending billions on infrastructure would improve productivity. He agreed there was no proof, but urged people to take a leap of faith - like the Victorian engineers.
STEM  skills  gap  practical  skills  apprenticeships  underinvestment  productive  investment  Northern  Powerhouse  UK  George  Osborne  David  Cameron  productivity  output  gap  recovery  carbon  tax  renewable  energy  competitiveness  competitive  industrial  policy  Germany  corporate  tax  rate  tax  evasion  tax  avoidance  conglomerate  multinational  HMRC  budget  deficit  dogma  ideology  austerity  squeezed  middle  class  job  creation  Service  Sector  Jobs  added  value  value  creation  economic  history  property  bubble  distortion  HS2  Hinkley  Point  C  HS3  infrastructure  investment  infrastructure  macroeconomic  policy  macroprudential  policy  zombie  banks  BOE  Funding  for  Lending  Scheme  Mark  Carney 
february 2016 by asterisk2a
Homelessness figures: Nearly 100,000 children in England 'homeless' - BBC News
Nearly 100,000 children in England are living in temporary accommodation after being made homeless, new figures show. // &! More & more student start work after graduation in low pay jobs not requiring a diploma, due to current job market/job creation situation in UK! Not hitting 21k repayment threshold - bbc.in/1OU0K3H - OBR show fewer are likely to start paying than was expected when the policy was introduced, [...] freezing the loan repayment threshold - alongside other changes such as replacing maintenance grants for poorer students with loans - will significantly increase the cost of going to university. It says this risks undermining pledges by successive governments to improve social mobility, as well as raising uncertainty in students' minds over the terms of their borrowing. //&! Higher education cuts 'risk NI being left behind' - bbc.in/1gZMrgj //&! Doctors warn Tories not to cut free school meals (child poverty, food poverty) bbc.in/1LewQrn
UK  property  bubble  Supply  and  Demand  Demand  and  Supply  affordable  housing  social  housing  Gini  coefficient  Generationengerechtigkeit  generation  rent  poverty  trap  child  poverty  food  poverty  austerity  Policy  Makers  dogma  ideology  neoliberalism  neoliberal  Tories  Conservative  Party  housing  market  Crisis  housing  benefit  benefits  welfare  state  social  safety  net  bank  bailout  fairness  social  cohesion  minority  constituency  error  folly  babyboomers  social  tension  Toff  Establishment  Privileged  Entitlement  general  election  2015  election  campaign  promises  Help  to  Buy  Scheme  excess  reserves  mortgage  market  Buy-to-Let  Right  to  Buy  Buy  to  Wall  Street  shareholder  value  profit  maximisation  inequality  Funding  for  Lending  Scheme  macroprudential  macroeconomic  microeconomics  disposable  income  discretionary  spending  debtoverhang  household  debt  recovery  2015  consumer  debt  debt  servitude  private  debt  Payday  Loans  Student  Loan  Millennials  generationy  secular  stagnation  low  income  prevention  job  security  job  market  labour  market  Niedriglohnsektor  Service  Sector  Jobs  job  creation  income  mobility  social  mobility  downward  mobility  precarious  work  Precariat  working  poor  University  vocational  education  professional  education  Maintenance  Student  Maintenance  child  Allowanc 
september 2015 by asterisk2a
Bank of England concerns over buy-to-let boom - BBC News
The growing buy-to-let property market in the UK could post a threat to wider financial stability, a Bank of England committee has said. [...] Buy-to-let mortgage lending had the potential to "amplify" a housing boom and bust, the Bank's Financial Stability Committee (FPC) concluded. Lending in this sector has risen by 40% since 2008, the FPC said. It stopped short of suggesting any intervention by government or regulators at this stage. "The FPC is alert to the rapid growth of the market and potential developments in underwriting standards," the committee said.
Buy-to-Let  Right  to  Buy  Help  to  Buy  Scheme  Funding  for  Lending  Scheme  BOE  macroprudential  policy  macroeconomic  policy  microeconomic  policy  fiscal  policy  monetary  policy  unconventional  monetary  policy  ZIRP  NIRP  QE  Supply  and  Demand  Demand  and  Supply  distortion  mortgage  market  NPL  Boom  and  Bust  irrational  exuberance  rent-seeking  rentier  generation  rent  Buy  to  Tories  Conservative  Party  Makers  Mark  Carney  FOMO  underinvestment  productive  investment  Wall  Street  shareholder  value  profit  maximisation  excess  reserves  zombie  banks  investment  banking  retail  banking  London  Westminster  Career  Politicians  recovery  GFC  No  Representation  Millennials  Generationengerechtigkeit  fairness  infrastructure  investment  George  Osborne  constituency  babyboomers 
september 2015 by asterisk2a
The other generation rent: meet the people flatsharing in their 40s | Money | The Guardian
Number of flatsharers aged 45-54 has risen by 300% in five years, figures show, amid soaring house prices, especially in London [...] Photographer Alex Forsey, 44, is typical of the new generation of flatsharers in their 40s. He recently moved into a house in Clapton, east London, with three other people in their 20s to 40s. He said: “The most affordable one-bed flat I was shown was £1,200 a month, and it was worse than a squat. The agent tried telling me it was a bargain.” //&! ability to get interest only loan is unbelievable.
generation  rent  London  property  bubble  Supply  and  Demand  Demand  and  Supply  UK  distortion  ZIRP  NIRP  QE  asset  allocation  asset  bubble  alternative  investment  Buy  to  Help  to  Buy  Scheme  Funding  for  Lending  Scheme  excess  reserves  mortgage  market  2015  macroprudential  policy  macroeconomic  policy  microeconomic  policy  BOE  NPL  subprime  cost  of  living  cost  of  entry  living  standard  living  spaces  standard  of  living  air  pollution  noise  pollution  city  living  urbanisation  economies  of  agglomeration 
september 2015 by asterisk2a
Borrowing up amid interest rates speculation - BBC News
Mortgage brokers said that the relatively low mortgage rates on offer could be a response to a mismatch of supply and demand. "The mortgage market remains over supplied with lenders having more money to lend than there are people looking for home loans. This means criteria will have to loosen and rates will have to remain low to ensure lenders hit their volume targets," said Mark Harris, chief executive of SPF Private Clients. "For many, the main issue is not so much finding a cheap mortgage rate but being able to prove affordability to satisfy the lender and meet [the regulator's] tighter criteria."
property  bubble  mortgage  market  distortion  affordable  housing  housing  market  Crisis  UK  social  housing  generation  rent  Supply  and  Demand  Demand  and  Supply  debtoverhang  household  debt  consumer  debt  debt  servitude  disposable  income  discretionary  spending  private  debt  2015  Taper  BOE  ZIRP  NIRP  QE  Help  to  Buy  Scheme  Funding  for  Lending  Scheme  excess  reserves  unknown  unkown  unintended  consequences  subprime  macroprudential  policy 
september 2015 by asterisk2a
UK interest rate rises - waiting for lift-off | Business | The Guardian
In 2018 – by when, bear in mind, most of the work of austerity is expected to have been done – Miles calculates that fiscal consolidation will still drag interest rates downwards by more than 0.75% compared to what would otherwise be the case. This is one of the factors explaining the (commonly held) assumption that interest rates will approach a “new normal” over the next few years that is likely to be about half as high as the 5% that prevailed pre-financial crisis. Even in the second half of the parliament this “fiscal headwind” will still be blowing strong. [...] The case for introducing more transparency isn’t mere technocratic trimming. The balance struck between monetary and fiscal policy has big consequences. There are obvious distributional implications (all else equal, mortgage holders win; savers lose). There are ramifications too for the capital allocation process, the current account, and the risk of an asset-bubble. The list goes on: the macro-mix matters.
BOE  Taper  austerity  fiscal  policy  monetary  policy  ZIRP  NIRP  QE  UK  economic  history  recovery  fiscal  stimulus  monetary  stimulus  Mark  Carney  2015  balance  sheet  recession  debtoverhang  deleveraging  savings  rate  consumer  debt  sovereign  debt  crisis  household  debt  debt  monetisation  debt  monetization  private  debt  credit  card  mortgage  market  discretionary  spending  disposable  income  macroeconomics  macroprudential  policy  macroeconomic  policy  microeconomic  policy  current  account  deficit  Makers  policy  folly  policy  error  Career  Politicians  No  Representation  short-term  thinking  short-term  view  David  Cameron  George  Osborne  IMF  OECD  Toff  dogma  ideology  neoliberalism  neoliberal  fairness  Establishment  Privileged  asset  bubble  hunt  for  yield  asset  allocation  speculative  bubbles  Funding  for  Lending  Scheme  Help  to  Buy  Scheme  housing  market  affordable  housing  STEM  education  policy  industrial  policy  globalization  globalisation  competitiveness  competitive  competition  competitive  advantage  London  Westminster  distortion 
august 2015 by asterisk2a
Sorry to burst your bubble | The Economist
bit.ly/1IfX0s9 // "According to two new papers, the crucial variable that separates relatively harmless frenzies from disastrous ones is debt." // see China Stock Market leverage pop mid 2015 - with its huge rise in margin debt trading ... money which was flowing out of the property market into the Stock Market // // &! so if it is about debt - UK mortgage market & consumer/private debt of all kind (loans and credit card debt) does qualify as they took up what was cut by austerity. Plus the Supply Demand distortion, with new builds/project at a decades lowest. // Question for China. The China problem. Can they make their system sustainable before it will crush everyone. // The most obvious is China. But the next one will be different & greater than all came before. Period. Still, UK had not a housing bubble collapse on its own making. Only through endogenous circumstances. UK recession as UK economy runs mostly on consumer sector & debt) bit.ly/1OpClSO bit.ly/1wQITjb bit.ly/1SycLtY
leverage  debtoverhang  equity  bubble  regulation  self-regulation  regulators  debt  servitude  consumer  debt  sovereign  debt  crisis  debt  bubble  Super  Cycle  household  debt  private  debt  economic  history  KennethRogoff  carmenreinhart  Greenspan-Put  ZIRP  NIRP  QE  margin  trading  margin  debt  asset  liquidity  economic  damage  asset  bubble  asset  allocation  distortion  behavioral  economics  behavioral  finance  mortgage  market  UK  credit  card  housing  market  property  bubble  Funding  for  Lending  Scheme  Help  to  Buy  Scheme  fiscal  policy  monetary  policy  macroprudential  policy  sustainability  sustainable  NPL  zombie  banks  zombie  consumer  economic  model  economic  irrational  exuberance  macroeconomic  policy  economic  growth  debt  monetisation  reflation  debt  monetization  consumerist  consumerism  consumer  confidence  business  confidence  business  financial  financial  crisis  GFC  balance  sheet  recession  Richard  Koo  deleveraging  baddebt  non-performing  loan 
july 2015 by asterisk2a
Mark Carney indicates that interest rates may rise this year - BBC News
>> uk is as USA, consumer dependent // bbc.in/1M8GM3L - 2% in two years - inflation targeting, slack in economy drag on rising cost, ... // looks forward how inflation looks at the turn of the year! as commodity price drop gets out of calculation y/y. // &! http://www.bbc.co.uk/news/business-33560035
UK  BOE  2015  Taper  NIRP  ZIRP  QE  Help  to  Buy  Scheme  Funding  for  Lending  Scheme  Mark  Carney  monetary  policy  mortgage  market  property  bubble  housing  market  liquidity  trap  balance  sheet  recession  debtoverhang  deleveraging  recovery  economic  history  GFC  Richard  Koo  BIS  unconventional  monetary  policy  monetary  transmission  mechanism  monetary  theory  savings  rate  credit  card  consumer  debt  household  debt  private  debt  debt  monetisation  debt  monetization  economic  model  trickle-down  economics  austerity  fiscal  policy  secular  stagnation  disposable  income  discretionary  spending  inflation  targeting  output  gap  productivity  2016 
july 2015 by asterisk2a
The escape from the balance sheet recession and the QE trap: An interview with Richard Koo - YouTube
"deflationary" is a symptom of balance sheet recession, deleveraging, debtoverhang ... of the private sector, corporate sector (& public gov sector) (to repair balance sheet). inflation of price of goods 2 live is still existent. you cant eat laptops. inflation is still present. actions of private sector, corporate sector to repair balance sheet (and even public sector, all three together) is deflationary. // UK! interesting is that consumer still borrows ie via credit card and mortgages. // question is how long UK can run such a big current account deficit. somebody has to pay for it, if not the gov with debt, then it has to be the private sector. as long as it can serve debt payments, as long as it has wage growth (increase of productivity, closing of output gap). But job creation during recovery was mostly Service Sector Jobs & self-employment. Not added value STEM. // corporate sector will not, in the long-run, pay for current account deficit w debt. &! youtu.be/EhYvaMc3f44
Richard  Koo  deflationary  book  mortgage  market  credit  card  private  debt  austerity  underinvestment  household  debt  current  account  deficit  UK  George  Osborne  David  Cameron  dogma  ideology  economic  history  economic  model  value  creation  added  value  STEM  productivity  productive  investment  infrastructure  investment  short-term  thinking  short-term  view  budget2015  public  investment  personal  investment  business  investment  economic  damage  microeconomic  policy  macroeconomic  policy  BOE  Mark  Carney  Toff  Privileged  Establishment  Tories  Conservative  Party  long-term  view  long-term  thinking  Career  Politicians  structural  deficit  Impediments  structural  unemployment  underemployed  part-time  Service  Sector  Jobs  job  creation  skills  gap  labour  market  labour  economics  Student  Maintenance  Grant  Higher  Education  policy  vocational  debt  loan  Gini  coefficient  social  mobility  income  mobility  welfare  state  poverty  trap  child  poverty  poverty  tax  code  working  tax  credit  corporate  tax  rate  child  tax  credit  tax  credit  tax  free  income  disposable  income  savings  rate  structural  imbalance  debt  servitude  ZIRP  NIRP  QE  fiscal  policy  fiscal  stimulus  monetary  policy  MervynKing  discretionary  spending  job  security  uncertainty  inequality  income  inequality  gender  inequality  propaganda  populism  media  conglomerate  manufactured  consent  skill-biased  technological  change  Funding  for  policy  gap  policy  policy  Lendin 
july 2015 by asterisk2a
The Real Looting of Baltimore... - YouTube
- same with mortgages linked to forex/different currency than your country of residence. // // abuse of existing instruments, not using it for intended purpose // and mis-selling of instruments and products - also see PPI ( Payment Protection Insurance ) mis-selling - http://www.bbc.co.uk/news/business-30695720 // and mis-selling forex linked loans (ie to Swiss Franc) to local governemnts and cities called Interest Rate Swap Mis-selling that got exorbinant expensive following the GFC actions (NIRP) by Central Banks (black swan) // all driven by managers meeting targets, getting and wanting bigger bonuses, wanting the bosses job, ... etc driven by cottage industry of analysts 'forecasting' that profit has to rise X% etc etc. // add also For Profit Schools! in the USA targeting Veterans & other rather financially illiterate :: youtu.be/P8pjd1QEA0c // biggest debt kind - mortgage and student loan debt // financial literacy also include gambling & lottery
Baltimore  Ferguson  mortgage  market  subprime  predatory  lending  practices  ninja  mortgage  UK  USA  Capitalism  crony  profit  maximisation  shareholder  value  foreign  currency  mortgage  bailout  corruption  abuse  of  power  CDS  MBS  lobbyist  lobby  Lobbying  revolving  door  Washington  GFC  toobigtofail  too  big  to  jail  TBTF  Gini  coefficient  financial  literacy  plutocracy  income  inequality  inequality  social  mobility  income  mobility  Western  World  Thomas  Piketty  economic  history  democracy  social  cohesion  libor  rigging  scandal  PPI  scandal  bonuses  bonus  Wall  Street  Payment  Protection  Insurance  mis-selling  Interest  Rate  Swap  banking  investment  banking  banking  crisis  American  Dream  Payday  Loans  debt  bubble  Super  Cycle  student  loan  debt  StudentLoans  lottery  gambling  downward  mobility 
may 2015 by asterisk2a
The Root of All Good - YouTube
2/3rds of loans provided on Funding Circle and Lending Club come from Institutional Money Managers // mortgages are biggest part of private debt as a whole.
book  GFC  finance  banking  investment  banking  Lending  Club  Funding  Circle  Debt  Super  Cycle  mortgage  market  mortgage  zombie  consumer 
may 2015 by asterisk2a
Autumn Statement 2014: Osborne's Cuts 'Will See Public Spending Fall To Lowest Level In 80 Years'
Tony Dolphin, senior economist at the Institute for Public Policy and Research, warned that Osborne's planned cuts were "implausible". "Given the scale of cuts in the public sector, [the OBR] can only make its growth forecast add up by assuming that consumer demand is boosted by households taking on more debt - and at an unprecedented pace. "Extraordinarily, the OBR thinks that by 2019 the household sector will have a financial deficit twice as big as in 2007 and 2008 when the financial crisis hit. As result, the household debt-to-income ratio is forecast 2 rise beyond its pre-crisis peak 2 over 180%. "This is pretty implausible. If the next government tries 2 follow the deficit reduction path set out in the Autumn Statement, it can only succeed in the short-term because the household sector takes on debt @ a faster pace than it did before the financial crisis. [this warning was heeded some years ago alrdy that consumer&corp would have to take on debt to spend to keep GDP # up!!!]
austerity  UK  George  Osborne  economic  history  David  Cameron  general  election  2015  fairness  Liberal  Democrats  Conservative  Party  Labour  Party  Super  Rich  1%  Privileged  Establishment  No  Representation  Toff  fiscal  policy  Democratic  Process  democracy  tax  free  income  Budget  Gerechtigkeit  Gini  coefficient  income  inequality  compromise  Career  Politicians  Debt  Super  Cycle  sovereign  crisis  recovery  GFC  Lohnzurückhaltung  working  poor  Services  Industry  service  economy  service  squeezed  middle  class  wage  growth  sticky  wages  Niedriglohn  Niedriglohnsektor  minimum  wage  productivity  output  gap  liquidity  trap  monetary  transmission  mechanism  zombie  banks  zombie  consumer  mortgage  market  ZIRP  NIRP  QE  Funding  for  Lending  Scheme  Help  to  Buy  Scheme  monetary  policy  Future  of  Work  Mobile  Creative  Mobile  Creatives  flat  world  globalisation  globalization  Year  of  Code  industrial  policy  job  creation  disposable  income  Precariat  precarious  Zero  Hour  Contract  economics  market  tax  evasion  tax  avoidance  GDP  economic  growth  zombie  corporations 
december 2014 by asterisk2a
BBC News - Long, long slog to mend public finances
So the job of mending the public finances is a long way from over. The best performing, big developed economy in the world - that's us by the way, as assessed by speed of GDP growth - is generating far less tax than expected. So this year, the Office for Budget Responsibility expects the harvest for the Exchequer from taxation to be £7.8bn less than it predicted in March. And by 2017-18, it says the shortfall will be an eye-watering £21bn. & the biggest shortfall, roughly half of it, is in income tax, which reflects the creation of lots of new low wage jobs & the absence of meaningful pay rises for millions. [...] reflecting a change in the structure of the economy, rather than a passing phenomenon. [AUSTERITY] The OBR calculates that spending per head in real terms in 2019/20 on the public sector minus health and schools would be £1,290, or 57% less than in 2009/10. [... edu & industrial policy not straight ahead towards econ of the future ...] [in this together?] &! bbc.in/1tqUjGz
tax  avoidance  tax  evasion  Gerechtigkeit  fairness  crony  capitalism  Budget  UK  Debt  Super  Cycle  sovereign  crisis  recovery  GFC  economic  history  Lohnzurückhaltung  working  poor  Services  Industry  service  economy  service  squeezed  middle  class  wage  growth  sticky  wages  Niedriglohn  Niedriglohnsektor  minimum  wage  productivity  output  gap  liquidity  trap  monetary  transmission  mechanism  zombie  banks  zombie  consumer  mortgage  market  ZIRP  NIRP  QE  Funding  for  Lending  Scheme  Help  to  Buy  Scheme  fiscal  policy  monetary  policy  Future  of  Work  Mobile  Creative  Mobile  Creatives  flat  world  globalisation  globalization  Year  of  Code  industrial  policy  job  creation  disposable  income  Precariat  precarious  Zero  Hour  Contract  labour  economics  labour  market  George  Osborne  David  Cameron  competitiveness  competitive  competition  comparative  advantage  Silicon  Valley  BRIC  Frontier  Markets  Developing  free  trade  global  trade  trade  agreements  TTIP  austerity  Structural  Impediments  unemployment  infrastructure  investment  deficit  imbalance  apprenticeships  education  policy  practical  skills  practical  skill  set  secular  stagnation  wage  stagnation  stagnation  stagflation  deflationary 
december 2014 by asterisk2a
Capitalism in Crisis Amid Slow Growth and Growing Inequality - SPIEGEL ONLINE
Six years after the Lehman disaster, the industrialized world is suffering from Japan Syndrome. Growth is minimal, another crash may be brewing and the gulf between rich and poor continues to widen. Can the global economy reinvent itself? [...] The buzzword is "inclusion" and it refers to a trait that Western industrialized nations seem to be on the verge of losing: the ability to allow as many layers of society as possible to benefit from economic advancement and participate in political life. & http://youtu.be/hPPBYNKmuWc?t=3m52s IMF talking about over 70% of EU banks are Zombie Banks.
Japan  economic  history  GFC  recovery  greatrecession  2014  secular  stagnation  faultlines  Abenomics  Richard  Koo  structural  imbalance  global  imbalances  Impediments  structural  deficit  liquidity  trap  globalisation  globalization  flat  world  Gini  coefficient  social  cohesion  income  inequality  income  mobility  social  mobility  downward  mobility  disposable  income  academia  academics  fiscal  policy  monetary  policy  debtoverhang  Debt  Super  Cycle  sovereign  crisis  deleveraging  NPL  zombie  banks  business  investment  consumer  confidence  business  confidence  balance  sheet  recession  creditcrunch  Wall  Street  crony  capitalism  excess  Bailout  toobigtofail  TBTF  too  big  to  jail  unintended  consequences  equity  bubble  asset  bubble  ZIRP  NIRP  QE  OMT  TARP  LTRO  TLTRO  Funding  for  Lending  Scheme  IMF  BIS  Europe  UK  USA 
october 2014 by asterisk2a
David Blanchflower: Do not be fooled – growth and living standards under the Coalition have still been abysmal - David Blanchflower - Business Comment - The Independent
Over the entire six-year period [ 2009 - 2013] real earnings in the UK fell by 6.5 per cent, and by 5.9 per cent between 2010 and 2012, and only Greece (minus 23 per cent) was lower. Real earnings growth was positive over this entire period in France (+5 per cent); Germany (+4 per cent); Japan (+1 per cent) and the US (+1 per cent).
greatrecession  UK  GFC  output  gap  productivity  stagflation  secular  stagnation  austerity  fiscal  policy  monetary  policy  Funding  for  Lending  Scheme  monetary  transmission  mechanism  property  bubble  indusrty  London  finance  zombie  banks  zombie  consumer  sovereign  debt  crisis  debtoverhang  deleveraging  balance  sheet  recession  lost  decade  lost  generation  George  Osborne  David  Cameron  No  Representation  Help  to  Buy  Scheme  Supply  and  Demand  Demand  and  Supply  living  standard  working  poor  squeezed  middle  class  class  warfare  Toff  private  education  OECD  BOE  unconventional  monetary  policy  macroprudential  policy  education  policy  Public  economies  of  agglomeration  economic  history  Mark  Carney 
september 2014 by asterisk2a
Bank of England’s 'slack' approach leaves economy at risk - Telegraph
There were 115,000 UK housing completions in 2013, almost a record peacetime low, compared with the 240,000 new homes needed each year just to meet the rise in household numbers hard-wired into our demography. This disgraceful shortage, and the government’s now long-past-its-sell-by-date Help-to-Buy scheme, is the reason prices are up 9.1pc across the UK over the last year and 17.1pc higher in London. And where house price inflation goes, economy-wide inflation eventually follows. While agreeing with Carney’s house-building analysis, I don’t agree the Bank can’t do more to rein in a market now in danger of spiralling out of control. [...] [A] development we’ll live to regret. +++ IMF warns UK government over housing bubble risk --- http://www.bbc.co.uk/news/business-27731567 +++ PRODUCTIVITY REMAINS WEAK. << skill-biased technological change, capital skills, skill, skills, knowledge worker, White-collar Worker, Blue-collar Worker, workforce, Mobile Creative, Mobile Creatives,
property  bubble  asset  bubble  hunt  for  yield  Help  to  Buy  Scheme  Funding  for  Lending  Scheme  Mark  Carney  BOE  macroprudential  policy  macroeconomic  policy  microeconomic  policy  monetary  policy  monetary  stimulus  fiscal  policy  GeorgeOsborne  David  Cameron  George  Osborne  2014  2015  general  election  2015  UK  unintended  consequences  unknown  unknowns  IMF  Structural  Impediments  imbalance  Supply  and  Demand  Demand  and  Supply  productivity  skill-biased  technological  change  capital  skills  skill  skills  knowledge  worker  White-collar  Blue-collar  workforce  Mobile  Creative  Mobile  Creatives  globalisation  globalization  Why  Software  Is  Eating  the  World  Software  Is  Eating  World  World  Flat  competitive  advantage  competitive  competitiveness  comparative-advantage  comparative  advantage  Year  of  Code  practical  skill  set  practical  skills 
june 2014 by asterisk2a
eBay Shrugged: Pierre Omidyar believes there should be no philanthropy without profit | PandoDaily
Pierre Omidyar. The role of Omidyar Network in so many major events of the past week — helping elect India’s ultranationalist leader Narendra Modi; co-funding Ukraine regime-change NGOs with USAID, resulting in a deadly civil war and Monday’s election of Ukrainian billionaire oligarch Petro Poroshenko; and now, this week’s first-ever sit-down TV interview with Edward Snowden, through an arrangement between NBC News and Pierre Omidyar’s First Look Media — shows how these contradictions are coming to the fore, and shaping our world. [...] Muhammad Yunus failed to dissuade Omidyar: "Let them make money—but why do you want to make money off the poor people?” [...] “Omidyar views the fund as a way of testing his theories about commercializing the sector. ‘It’s really the demonstration impact I’m looking for, primarily,’ he said.” << Billionaires Playground. Rarefied People.
Pierre  Omidyar  Narendra  Modi  neoliberal  Omidyar  Network  far-right  Ukrain  Ukraine  Edward  Snowden  NSA  First  Look  Media  Whistleblower  Glenn  Greenwald  neoconservatives  neoconservatism  Politics  NGO  foreignaffairs  foreign  policy  diplomacy  foreign  affairs  G  Zero  US  national  security  state  USA  Hernando  de  Soto  property  rights  vested  interest  national  interest  interest  groups  conflict  of  interest  microfinance  microfinance  lending  India  2014  ethics  governance  morals  rarefied  Super  Rich  1%  Muhammad  Yunus  Commanding  Heights  eBay  Wikileaks  Julian  Assange  fiduciary  responsibility  PayPal  corporatism  corporate  governance  freedom  of  press  freedom  of  expression  Silicon  Valley  Sociopath 
may 2014 by asterisk2a
The Bank of England cannot fine-tune house prices - Telegraph
a home is not an investment asset. or something to buy for your 'diversified' pension pot. + http://www.bbc.co.uk/news/uk-scotland-scotland-business-27312876 - The Scottish housing market continues to be "marred" by weak supply and high demand, according to surveyors. + // http://www.cnbc.com/id/101653695
UK  2014  property  bubble  asset  bubble  Mark  Carney  fiscal  policy  monetary  policy  BOE  Funding  for  Lending  Scheme  Help  to  Buy  Scheme  Supply  and  Demand  policy  folly  policy  error  public  policy  Career  Politicians  unintended  consequences  inequality  Gini  coefficient  living  standard  post-recession  housing  market  mortgage  market  ZIRP  hunt  for  yield  QE  NIRP  wage  stagnation  living  wage  democracy  Millennials  zombie  consumer  Consumerism  consumerist  consumer  debt  Super  Cycle  generationy  unfair  babyboomers  ethics  morals  morality  GFC 
may 2014 by asterisk2a
British austerity is no model for the rest of the world - FT.com
the pace of fiscal contraction has slowed over the past two years. This means that the brake on growth caused by fiscal policy is becoming more attenuated. So the turnround in growth over the past 18 months is as much evidence against austerity as it is pro-austerity. Second, faced with the potential damage caused by the deficit reduction to demand and economic growth, the UK government has been forced to introduce a number of extraordinary measures to support lending. [...] It certainly should not, however, be seen as any kind of inspiration to other companies or countries. + http://www.telegraph.co.uk/finance/economics/10807988/Rapid-rate-rises-could-throw-UK-back-into-recession.html
Help  to  Buy  Scheme  Funding  for  Lending  Scheme  fiscal  policy  monetary  policy  BOE  austerity  Mark  Carney  davidcameron  GeorgeOsborne  recovery  2014  GFC  zombie  consumer  Debt  Super  Cycle  private  sovereign  crisis  consumer  bubble  monetization  monetisation  QE  ZIRP  Career  Politicians  short-term  thinking  election  campaign  promises  general  election  2015  election2015  unintended  consequences  unknown  unknowns  productivity  wage  stagnation  living  wage  working  poor  squeezed  middle  class  financial  repression  New  Normal  structural  deficit  budget  deficit  jubilee  public  household  debtoverhang  liquidity-trap  economic  history  property  bubble  Supply  and  Demand  mortgage  market  housing  market  Supply  Supply  Shortfall  public  policy  policy  error  policy  folly  unconventional  monetary  policy  policy-makers  policy  makers  democracy  Politics  UK 
may 2014 by asterisk2a
Amazingly, London’s property boom may still have years to run - Quartz
Housing shortage. ( Supply ) Period. + British unemployment fell to a five-year low - + mortage market may come under pressure when ZIRP ends and the zombie consumer can't server the rising interest payments.
UK  recovery  2014  Help  to  Buy  Scheme  QE  BOE  Funding  for  Lending  Scheme  ZIRP  Mark  Carney  monetary  transmission  mechanism  unconventional  monetary  policy  monetary  policy  property  bubble  Supply  and  Demand  mortgage  market  zombie  consumer  Consumerism  consumerist  consumer  debt  Super  Cycle  austerity  GeorgeOsborne  davidcameron 
may 2014 by asterisk2a
Chris Cook crunches the numbers - Newsnight - YouTube
what if current productivity numbers are - as good as it gets. and the productivity high from 2006-7-8 was hugely inflated by london, super rich, banking and financial services industry!? thus what if we are running currently at full speed possible although it looks (in comparison to 06/07/08 slower) so slow. thus ... austerity needs to go on for much longer to eliminate budget deficit and possibility of inflation and wage inflation spiral is nearer to the horizon than what the BOE (with its ZIRP and QE policy) has it scheduled to arrive and thus then forced to hike rates earlier than though and debt servicing will be more expensive ... for gov and debt holder and mortgage holders.
UK  budget2014  budget  budget  deficit  GeorgeOsborne  davidcameron  recovery  2014  economic  history  academia  academics  output-gap  output  gap  Productivity  unemployment  Structural  Impediments  unemployment  imbalance  faultlines  BOE  fiscal  policy  monetary  policy  unknown  unkown  unintended  consequences  ZIRP  QE  Help  to  Buy  Scheme  Funding  for  Lending  Scheme  mortgage  market  speculative  bubbles  asset  bubble  bond  bubble  property  bubble 
march 2014 by asterisk2a
BBC News - Many Britons 'fear mortgage arrears'
Campbell Robb, chief executive of Shelter, which helps a million people a year with housing problems, said that despite recent discussion of an economic recovery, a combination of high housing costs, wage freezes, and rising food and energy bills had created a "nightmare scenario" for many families. He said: "It's a worrying sign of the times that so many are starting the New Year worried about how they'll pay their rent or mortgage in 2014. "Unless they get help, some of the families struggling now could face the very real prospect of losing their home this year."
working  poor  squeezed  middle  class  recovery  2013  2014  asset  bubble  mortgage  market  mortage  ZIRP  QE  NIRP  hunt  for  yield  unintended  consequences  BOE  UK  monetary  policy  complexity  property  bubble  speculative  bubbles  zombie  consumer  private  debt  Super  Cycle  consumer  debt  Consumerism  fiscal  policy  GeorgeOsborne  davidcameron  error  policy  folly  Funding  for  Lending  Scheme  Help  to  Buy  Scheme  Mark  Carney  political  folly  Career  Politicians  Toff  political  error 
january 2014 by asterisk2a
OECD Warns UK Faces Housing Bubble | Zero Hedge
The Great House Price Bubble? - http://www.bbc.co.uk/programmes/b03j0nw1 + http://www.zerohedge.com/news/2013-09-13/uk-realtors-ask-central-bank-halt-housing-bubble " Estate agents and surveyors have become so concerned about the dangers of another unsustainable housing boom that their trade body is urging the Bank of England to limit national house price growth to 5 per cent a year. " ... same in Germany's Cities.
property  bubble  UK  demand  and  supply  supply-demand  Funding  for  Lending  Scheme  Help  to  Buy  Scheme  Politics  GeorgeOsborne  davidcameron  2013  policy  folly  policy  error  Germany  speculative  bubbles  asset  bubble  bubble  unintended  consequences  ZIRP  QE  NIRP  negative  real  interest  rate  monetary  policy  BOE  ECB 
november 2013 by asterisk2a
Five Years After Lehman, BIS Ex-Chief Economist Warns "It's Worse This Time" | Zero Hedge
The share of "leveraged loans" or extreme forms of credit risk, used by the poorest corporate borrowers, has soared to an all-time high of 45% - 10 percentage points higher than at the peak of the crisis in 2007. + http://www.zerohedge.com/news/2013-09-14/record-high-grade-leverage-means-pik-toggle-lbo-debt-back-and-worse-ever // The Bank Of International Settlements Warns The Monetary Kool-Aid Party Is Over www.zerohedge.com/news/2013-06-23/bank-international-settlements-warns-monetary-kool-aid-party-over ""central banks must head for the exit and stop trying to spur a global economic recovery... cheap and plentiful central bank money had merely bought time, warning that more bond buying would retard the global economy’s return to health by delaying adjustments to governments’ and households’ balance sheets." http://www.telegraph.co.uk/finance/10310598/BIS-veteran-says-global-credit-excess-worse-than-pre-Lehman.html
unemployment  employment  monetary  policy  Mark  Carney  ope  reflation  zombie  banks  monetary  transmission  mechanism  BOE  banking  crisis  carmenreinhart  BOJ  LBO  balancesheet  policy  folly  QE  liquidity  2013  fiscal  policy  UK  debt  monetisation  political  error  unknown  unkown  greatdepression  zombie  consumer  deleveraging  debt  monetization  Richardkoo  centralbanks  liberal  economic  reform  faultlines  GFC  monetary  theory  exuberance  MarioDraghi  unintended  consequences  global  economy  monetary  stimulus  Help  to  Buy  Scheme  liquidity-trap  zombie  corporations  ECB  monetary  system  political  folly  benbernanke  bank  crisis  Abenomics  rebalancing  China  greatrecession  policy  error  productivity  LTRO  NIRP  OMT  Fed  communication  economic  history  Super  Cycle  stagflation  leverage  KennethRogoff  sovereign  debt  crisis  recovery  unconventional  monetary  policy  ZIRP  USA  BIS  POMO  Funding  for  Lending  Scheme  corporate  governance  fiscal  deficit 
september 2013 by asterisk2a
BBC News - Bank of England must limit house price booms, says Rics
The Bank said it was being vigilant. - http://www.zerohedge.com/news/2013-09-13/uk-realtors-ask-central-bank-halt-housing-bubble // "The Bank of England now has the ability to take the froth out of future housing market booms, without having to resort to interest rate increases," is the way the UK's realtor association explains their demand that the BoE limit national house price growth to 5% a year. While they would benefit from short-term gains, it seems the Royal Institution of Chartered Surveyors (RICS) sees the dangers of another unsustainable housing boom outweigh them.
monetary  policy  Politics  asset  bubble  unintended  consequences  zombie  banks  Help  to  Buy  Scheme  monetary  transmission  mechanism  liquidity-trap  davidcameron  BOE  political  folly  policy  error  policy  folly  debtoverhang  QE  NIRP  2013  communication  fiscal  policy  Debt  Super  Cycle  property  bubble  UK  monetisation  bubble  political  error  sovereign  crisis  ZIRP  zombie  consumer  deleveraging  inflation  expectation  subsidies  Funding  for  Lending  Scheme  monetization  GeorgeOsborne  subsidizing  balance  sheet  recession 
september 2013 by asterisk2a
▶ Reuters Breakingviews: UK inflation an embarrassment to BoE - YouTube
Mark Carney left CAD with house price bubble Mark Carney ignores house price bubble and impending doom of too much debt when interest rates wise - one or the other way.
unemployment  monetary  policy  Politics  asset  bubble  monetary  theory  unintended  consequences  Help  to  Buy  Scheme  davidcameron  EPS  BOE  monetary  system  political  folly  policy  error  policy  folly  2013  short-term  thinking  Debt  Super  Cycle  stagflation  property  bubble  UK  political  error  bubble  sovereign  crisis  dividends  austerity  WallStreet  zombie  consumer  inflation  Funding  for  Lending  Scheme  GeorgeOsborne 
august 2013 by asterisk2a
Silly Season news | ForexLive
Put bluntly, we now have a potentially dangerous financial structure which encourages borrowing, and discourages saving. The rush to create growth has thrown to one side any inflation concerns - for now. BUT there will be an election in 2015 – at the latest. Should the forward guidance prove accurate, we will enter the build up to that election with continued low interest rates, rising house prices and a positive growth outlook – fertile ground for a Conservative Party overall majority. HOWEVER, should inflation or employment become at odds with the strategy, Mr Carney may be under a lot of pressure to prove his neutrality by tightening in the run up to that election – and as I know, what is least convenient is likely to happen…. + http://www.forexlive.com/blog/2013/08/12/uk-home-buyers-boost-purchases/ - Debt Fueled Recovery.
QE  NIRP  unemployment  monetary  policy  Mark  Carney  Debt  Super  Cycle  property  bubble  stagflation  UK  unintended  consequences  Help  to  Buy  Scheme  ZIRP  austerity  davidcameron  BOE  greatdepression  MPC  zombie  consumer  inflation  Funding  for  Lending  Scheme  GeorgeOsborne  greatrecession 
august 2013 by asterisk2a
Cash in as our desperate government inflates a new housing bubble - MoneyWeekMoneyWeek
So if prices are going up, people think that their situation is improving. Happy families make happy voters – and happy voters vote for the party in power. That’s why a massive mortgage subsidy scheme – Help to Buy – has been thrust upon us. And it seems to be working. Prices and sales are rising. [...] Trouble is, interest rates right now are at or near record lows. So mortgage servicing costs are only likely to rise. Ironically enough, it could be an economic recovery that does the damage: a recovery would result in higher rates, pushing mortgage payments up, and making many loans unaffordable. [...] As long as things look good come May 2015, it will happily ignore any potential collateral damage. And the scheme has had an almost-immediate impact. Formally launched in this year’s budget in April, it has already seen sales of new homes surge. The government now plans to expand it from next year.
state  guarantee  microeconomic  policy  2013  Politics  microeconomics  fiscal  policy  property  bubble  UK  unintended  consequences  loan-guarantee  Help  to  Buy  Scheme  collateral  damage  davidcameron  subsidies  guarantees  Funding  for  Lending  Scheme  GeorgeOsborne  subsidizing 
august 2013 by asterisk2a
UK banking shortfall mostly patched up | ForexLive
The FT is out with a sensational headline saying ‘PRA to expose £26bn bank funding gap’ but the details of the story show that the numbers don’t account for measures already taken this year or are scheduled over the next 18 months. The Royal Bank of Scotland, Lloyds and Barclays account for 90% of the shortfall but each has only about £1-2bn more to raise.
liquidity  debtoverhang  trust  GFC  UK  confidence  RBS  creditcrunch  capital  Lloyds  trustagent  liquid  assets  greatdepression  banking  crisis  deleveraging  Barclays  bank  crisis  creditcrisis  Funding  for  Lending  Scheme  greatrecession  balance  sheet  recession 
june 2013 by asterisk2a
www.bankofengland.co.uk/publications/Documents/speeches/2013/speech670.pdf
UK’s King Last Speech: UK needs more Bank of England stimulus as recovery is not assured. >> UK's future still uncertain. Reflective in Cable (GBPUSD). While others do much better. >> "Despite this encouraging picture, growth is not yet strong enough to reduce the considerable margin of spare capacity in the economy. Nor is recovery at an adequate rate fully assured. The weakness of the euro area and the problems of the UK banking system continue to act as a drag on growth. So the need to support the recovery remains. [...] unemployment remains unnecessarily high. [...] Both nominal and real interest rates are at unsustainably low levels. There is an understandable yearning for a return to normality [...] Monetary policy cannot provide the answer. [... Banking > ...] It is insufficient capital that restricts lending [+ holding not enough liquid assets]. And, without a resilient banking system, it will be difficult to sustain a recovery."
unemployment  monetary  policy  currency  war  Mark  Carney  reflation  zombie  banks  capital  monetary  transmission  mechanism  BOE  banking  crisis  Structural  Impediments  creditcrisis  Discount  Window  Facility  policy  folly  Recapitalisation  liquidity  QE  price  stability  inflation  targeting  fiscal  policy  UK  debt  monetisation  devaluation  political  error  imbalance  creditcrunch  Recapitalization  trustagent  hunt  for  yield  austerity  greatdepression  zombie  consumer  deleveraging  global  imbalances  inflation  debt  monetization  governance  balance  sheet  recession  Leverage  GFC  complexity  output-gap  unintended  consequences  liquidity-trap  debt  restructuring  monetary  system  too  big  to  jail  political  folly  bank  crisis  greatrecession  policy  error  debtoverhang  Special  Scheme  NIRP  trust  economic  history  confidence  youth  unemployment  unconventional  monetary  policy  ZIRP  MervynKing  toobigtofail  Funding  for  Lending  Scheme  corporate  governance 
june 2013 by asterisk2a
The Fed isn’t the most important central bank in the world right now | ForexLive
A credit crunch may be underway in China as the PBOC turns its back on the money market. One-day repo rates rose to a more than 5-year high today at today at 11.0% from 6.3% at the open in the Chinese interbank market (CHIBOR). Interbank repo rates hit 15% for overnight lending a 12% for two weeks (up more than 400 bps).
monetary  policy  2013  interbank  market  trust  property  bubble  interbank  lending  confidence  creditcrunch  trustagent  deleveraging  PBOC  creditcrisis  China  money  market  balance  sheet  recession 
june 2013 by asterisk2a
Sir Mervyn King issues Help to Buy mortgage warning
The outgoing Bank of England governor warns a government plan to boost the housing market with part-mortgage guarantees has no long-term place. >> http://www.youtube.com/watch?v=2_gEzqfRltw - facilitating even more an unequal society. Political Voter Move.
QE  debtoverhang  NIRP  monetary  policy  2013  fiscal  policy  property  bubble  UK  reflation  Help  to  Buy  Scheme  bubble  ZIRP  BOE  greatdepression  deleveraging  MervynKing  Funding  for  Lending  Scheme  GeorgeOsborne  greatrecession  balance  sheet  recession 
may 2013 by asterisk2a
BBC News - Osborne to extend Funding for Lending Scheme
The chancellor is expected to announce an extension to the Bank of England-run Funding for Lending Scheme (FLS) in the coming weeks.
austerity  2013  economic  history  UK  Funding  for  Lending  Scheme  IMF 
april 2013 by asterisk2a
BBC News - George Osborne warned by MPs over mortgage guarantee risks
Mr Osborne has said the housing market is still not functioning properly after the 2008 financial crisis, with the number of purchases by first-time buyers down 40% in the past five years. [...] >> haven't they learned anything? subprime and house price bubble created itself by state guarantees introduced by gwbush to push home owner ship. - history doesn't repeat, but rhymes - market prices though information. distortion by brining in more normally ineligible buyers. - Osborne tackling an effect of income stagnation and excessive inflation + zombie consumers and zombie banks. First-time buyers unable to put up deposit. >> http://www.zerohedge.com/news/2013-03-20/uk-discloses-home-purchase-subsidy-part-its-latest-2013-budget
microeconomic  policy  monetary  policy  complexity  asset  bubble  Mark  Carney  monetary  theory  reflation  unintended  consequences  zombie  banks  liquidity-trap  distortion  davidcameron  BOE  subprime  political  folly  policy  folly  QE  2013  Plan  B  short-term  thinking  microeconomics  disequilibrium  economic  history  gwbush  mortgage  fraud  UK  error  equilibrium  fanniemae  unconventional  monetary  policy  ZIRP  austerity  USA  housing  bubble  zombie  consumer  mortgage  market  MervynKing  subsidies  freddiemac  economics  Funding  for  Lending  Scheme  GeorgeOsborne  subsidizing 
april 2013 by asterisk2a
BBC News - Banks reduce loans, in spite of Funding for Lending
The number of loans being offered by banks has continued to fall in spite of the Funding for Lending Scheme (FLS). The scheme, which began in August last year, was designed to encourage banks to lend more money, both to individuals and businesses, and boost the economy. But the Bank of England has announced that net lending fell by £2.4bn in the final quarter of last year compared with the previous three months.
monetary  policy  Mark  Carney  zombie  banks  BOE  deflation  2012  greatrecession  debtoverhang  2013  trust  fiscal  policy  UK  confidence  creditcrunch  sovereign  debt  crisis  trustagent  austerity  ZIRP  greatdepression  zombie  consumer  global  imbalances  MervynKing  Funding  for  Lending  Scheme  GeorgeOsborne  balance  sheet  recession 
march 2013 by asterisk2a
BBC News - Funding for Lending bank scheme launched
Under the Funding for Lending initiative, the Bank of England will lend money at below-market rates to the financial institutions.

The Bank will then monitor their progress in lending the cash out.

Some mortgage lenders have already cut the cost of their long-term, fixed-rate deals.

But the lower borrowing costs being introduced by mortgage lenders are so far only being offered to people with large deposits.

-

Bank of England, the Funding for Lending scheme (FLS) is "designed to incentivise banks and building societies to boost their lending to UK households and non-financial companies".
double-dip  monetary  policy  Project  Merlin  Merlin  FLS  ZIRP  QE  2012  creditcrunch  greatrecession  BOE  UK  Funding  for  Lending  Scheme 
august 2012 by asterisk2a
Libor affair shows banking’s big conceit - FT.com
http://www.ft.com/indepth/libor-investigation

[LIBOR scandal exposes] a big conceit at the very heart of the modern banking world.

Most notably, in recent decades large investment banks in the City of London and Wall Street have increasingly wrapped their activities with an evangelical adherence to the rhetoric of free markets; whenever they have wanted to justify
sky-high profits, wacky innovations or, most recently, the need to prevent a new regulatory drive, they have invariably cited the ideals of Adam Smith.

[...]

[T]he real issue was that Libor was never organised as a proper market in the first place, which is precisely why the manipulation continued unchecked on such a wide scale for so long.

[...] the market has been dominated by a small clique of powerful banks, which also controlled the BBA.
CFTC  free  market  economic-thought  economic  history  financialmarkets  interbank  lending  interbank  oligopol  competition  toobigtofail  adamsmith  accountability  transparency  WallStreet  greatrecession  GFC  banking  banking  crisis  SEC  BBA  FSA  manipulation  barclays  EURIBOR  LIBOR 
june 2012 by asterisk2a
Osborne’s £100bn plan for UK economy - FT.com
George Osborne on Thursday night announced plans for a £100bn support programme for the British economy,

Sir Mervyn also raised the prospect of a new round of quantitative easing, saying that “the case for a further monetary easing is growing”.

At the heart of the package is a BoE “funding for lending” scheme to cut bank funding costs in exchange for lending commitments. The Treasury claims the programme, designed to address the rising costs of loans and mortgages, could support an estimated £80bn in new loans.

the BoE will also on Friday activate an emergency scheme that offers six-month liquidity to banks in tranches of no less than £5bn a month.

***

1 1/2 weeks ago IMF did present such a scheme in its latest report about UK economy and did encourage UK do to so if situation deteriorates further.
IMF  MervynKing  creditcrunch  banking  Funding  for  Lending  Scheme  monetary  policy  fiscal  policy  ZIRP  QE  greatrecession  UK  2012  GeorgeOsborne  BOE 
june 2012 by asterisk2a
China Will Suspend Open Market Operations Tomorrow In Response To Liquidity Freeze | zero hedge
Why is this important? Because as is by now well known, China is Europe's white knight, and Chinese banks, likely with the assistance of the PBoC, have been buying up European (and Japanese bonds). Yet will it be able to do so in light of the lock out of banks from overnight liquidity? This is currently unknown, although speculation that June inflation will be even higher than May's, likely have ominous implications for future liquidity as more rate hikes are imminent.
And if the liquidity freeze is already affecting open market operations, it is very much unclear what this means for general fund flows within the Chinese economy. One factor that can provide a brief respite is the maturity of CNY83 billion in bills and repos this week, which will inject some much needed liquidity in the market.
Keep a close eye on the SHIBOR: if China ends up needing Central Bank assistance in the unsecured lending market, it will destroy all credibility of the Chinese "White Knight" scenario.
China  interbank  liquidity  overnight  lending  bank  PIIGS  Spain  bailout  2011  PBoC  ECB  blackswan  credit 
june 2011 by asterisk2a
Fed Lending Benefited Banks Far and Wide - NYTimes.com
The Fed data showed that the biggest recipient of taxpayer assistance was, naturally, Citigroup. It was followed closely by Morgan Stanley, Merrill Lynch and Bank of America. Goldman Sachs was also a large beneficiary during the darkest moments of 2008.
Remember that the Wall Street firms were imperiled by their excessive use of borrowed money, which generated huge paydays when the cost of those funds was cheap and the values of the assets they were buying were rising at a steady clip. After the bubble burst and financing evaporated, the firms were able to tap into a lending program created by the Fed in mid-March 2008 after Bear Stearns collapsed. It was called the Primary Dealer Credit Facility.
The program allowed firms to borrow at low interest rates — ranging from 3.25 percent when the program began to 0.5 percent when the last loan was made in May 2009. The firms had to post various securities as collateral when they borrowed, and some of those securities were risky indeed.
fed  benbernanke  balancesheet  interbank  report  financialcrisis  FinancialCrisisInquiryCommission  2008  2009  bearstearns  citigroup  goldmansachs  shadowbanking  fanniemae  freddiemac  aig  lending  overnight 
december 2010 by asterisk2a
Fair Game - In the Mortgage Drama, One Role Is Enough - NYTimes.com
Banks are back office for mortgage lending industry. their tasks are fairly simple: they take in monthly mortgage payments&distribute them 2 whoever owns the loans. ie large institutions like pension funds or mutual funds own the mortgages, and servicers are obligated to act in their interests at all times.

defaulting loan servicing becomes much more complex and laborious. Servicers must chase delinquent borrowers possibly into foreclosure.

conflict of interest
the same bank that services a primary mortgage owned by another institution also owns a second mortgage or home equity line of credit on the same property. When that borrower has trouble meeting both payments, the servicer has an interest in making sure that amounts owed on the second lien, which it owns, continue to be paid even if the first loan, which it has no interest in, slides into delinquency. About two-thirds of primary mortgages are serviced by banks who do not own them but hold the accompanying seconds.
BankofAmerica  BoA  jpmorgan  citibank  citigroup  wellsfargo  conflict  fraud  2010  mortage  lending  practice  usa  housing  bubble  SEC  FDIC  FHDA 
august 2010 by asterisk2a
Why Aren’t Banks Lending? They Are Being Rational | The Big Picture
Lending money is a risky business; there is the possibility of loss. Under-capitalized banks cannot take that chance. By not lending, their capital base goes up. IT is the rational thing to do from their perspective.
Rather than engage in traditional money lending, these banks have decided to simply borrow from the Fed at 0%, and make risk free loans to the Treasury at 3%.
.
--- BATTLE FOR THE WORLD ECONOMY --- KEYNESIAN ECONOMICS vs LIBERAL ECONOMICS
... 1 point for keynes to stop the downturn
... 1 point to austrians bc banks dont lend
.... 1 point to austrians because govnt debt is on the verge of failure
.... -1 for keynes bc it gave to wrong impression

to be continued 2010.

Why? They need to rebuild their capital levels after 30 years of declining safeguards and capital ratios.

This is yet another unintended consequence of bailing reckless bankers from their folly. Theior oplace in the economy is so distorted, as to become nearly economically meaningless . . .
bank  lending  2009  2010  recovery  recession  rational  irrational  creditline  creditcrunch  psychology  credit  usa  humor  fed  incentive  treasuries  capital  ratio  treasury  freemarkets  distortion  battle-for-the-world-economy  battle-of-ideas  distorted  economic  economy  debt  government  battle  keynes  Keynesianism  liberal  bailout  consequences  2011  2012  depression 
december 2009 by asterisk2a
Looming Credit Crunch: Merkel Government Urges Banks to Lend More - SPIEGEL ONLINE - News - International
But now many are warning it is too early to celebrate. Fears are running high that the recovery could be derailed by a possible credit crunch, with Germany's all-important small- and medium-sized companies finding it increasingly hard to access loans.

Chancellor Angela Merkel met with employers groups, labor unions and more than 30 company bosses on Wednesday to evaluate the risks to Germany's economic health and look at how to boost access to finance.
2010  germany  recession  creditcrunch  lending  creditline  middleclass  SMB  smallbusiness  mittelstand 
december 2009 by asterisk2a

related tags

1%  10%  20%  Abenomics  abuse  academia  academics  account  accountability  adamsmith  added  advantage  affairs  affordable  agglomeration  aggregate  agreements  aig  air  allocation  Allowance  alternative  American  and  Angela  apprenticeships  Assange  asset  assets  austerity  avoidance  B  babyboomers  baddebt  BaFin  bail  bailout  balance  balancesheet  Baltimore  bank  banking  BankofAmerica  banks  barclays  Basel  Basel3  battle  battle-for-the-world-economy  battle-of-ideas  BBA  bearstearns  behavioral  benbernanke  benefit  benefits  big  BIS  blackswan  Blue-collar  BoA  BOE  BOJ  bond  bonus  bonuses  book  boom  Brexit  BRIC  British  BuBa  bubble  bubbles  budget  budget2014  budget2015  business  Bust  Buy  Buy-to-Let  C  Cameron  campaign  capital  capitalism  car  carbon  card  Career  carmenreinhart  Carney  CDS  centralbanks  Centrist  CFTC  change  child  childhood  China  Circle  citibank  citigroup  city  class  Club  code  coefficient  cohesion  collateral  Commanding  communication  comparative  comparative-advantage  competition  competitive  competitiveness  complex  complexity  compromise  confidence  conflict  conglomerate  consent  consequences  Conservative  constituency  consumer  consumerism  consumerist  contagion  Contract  corporate  corporations  corporatism  corruption  cost  creation  Creative  Creatives  credit  creditcrisis  creditcrunch  creditline  crisis  crony  currency  current  Cycle  damage  David  davidcameron  de  debt  debtoverhang  decade  deficit  deflation  deflationary  deleveraging  demand  democracy  Democratic  Democrats  deposit  depression  derivatives  Deutsche  devaluation  Developing  development  diplomacy  Discount  discounted  discounting  discretionary  disequilibrium  disposable  distorted  distortion  distribution  dividends  dogma  door  double-dip  downward  Dream  Eating  eBay  ECB  economic  economic-thought  economics  economies  economy  education  Edward  election  election2015  employment  energy  Entitlement  entry  EPS  equilibrium  equity  error  Establishment  ethics  EURIBOR  Europe  European  evasion  excess  expectation  expression  exuberance  facility  fairness  fairy  fanniemae  far-right  faultlines  FDIC  fed  Ferguson  FHDA  fiduciary  finance  financial  financial-industrial  financialcrisis  FinancialCrisisInquiryCommission  financialmarkets  First  fiscal  flat  FLS  folly  FOMO  food  for  foreign  foreignaffairs  Forex  fraud  freddiemac  free  freedom  freemarkets  Frontier  FSA  Funding  Future  G  Galbraith  gambling  gap  GDP  GE2017  gender  general  generation  Generationengerechtigkeit  generationy  George  GeorgeOsborne  Gerechtigkeit  germany  GFC  Gini  Glenn  global  globalisation  globalization  goldmansachs  governance  government  Graeber  Grant  greatdepression  greatrecession  Greece  Greenspan-Put  Greenwald  groups  growth  guarantee  guarantees  gwbush  Heights  Help  Hernando  Higher  Hinkley  history  HMRC  Hour  household  housemarket  housing  HS2  HS3  humor  hunt  ideology  III  imbalance  imbalances  IMF  Impediments  incentive  income  India  indusrty  industrial  Industry  inequality  inflation  infrastructure  Insurance  integration  interbank  interest  investment  irrational  Is  Italy  jail  James  JAMESGALBRAITH  Japan  job  Jobs  jpmorgan  jubilee  Julian  Kenneth  KennethRogoff  keynes  Keynesianism  knowledge  Koo  labour  LBO  lending  leverage  liberal  libor  liquid  liquidity  liquidity-trap  literacy  living  Lloyds  loan  loan-guarantee  Loans  lobby  Lobbying  lobbyist  Lohnzurückhaltung  London  long-term  Look  lost  lottery  low  LTRO  M3  macroeconomic  macroeconomics  macroprudential  Maintenance  makers  manipulation  manufactured  Manufacturing  margin  MarioDraghi  Mark  market  Markets  maximisation  MBS  mechanism  media  meritocracy  meritocratic  Merkel  Merlin  MervynKing  microeconomic  microeconomics  microfinance  middle  middleclass  Millennials  minimum  minority  mis-selling  mittelstand  Mobile  mobility  model  Modi  monetary  monetisation  monetization  money  monopsony  morality  morals  mortage  mortgage  MPC  Muhammad  multinational  Narendra  national  negative  neoconservatism  neoconservatives  neoliberal  neoliberalism  net  Network  New  NGO  Niedriglohn  Niedriglohnsektor  ninja  NIRP  No  noise  non-performing  Normal  Northern  NPL  NSA  OECD  of  oligopol  oligopoly  Omidyar  OMT  ope  Osborne  output  output-gap  overnight  Oversight  part-time  Party  Payday  Payment  PayPal  PBOC  PBoC  peer  personal  Pierre  piggybank  PIGS  PIIGS  Piketty  Plan  plutocracy  Point  policy  policy-makers  political  politician  Politicians  Politics  pollution  POMO  poor  populism  post-recession  Pound  poverty  power  Powerhouse  PPI  practical  practice  practices  Precariat  precarious  predatory  press  prevention  price  private  Privileged  Process  product  productive  productivity  professional  profit  Project  promises  propaganda  property  Protection  psychology  public  QE  Raghuram  Rajan  rarefied  rate  ratio  rational  RBS  real  rebalancing  Recapitalisation  Recapitalization  recession  recovery  reflate  reflation  reform  regulation  regulators  renewable  rent  rent-seeking  rentier  repo  report  Representation  repression  reserves  responsibility  restructuring  retail  revolving  Rich  Richard  Richardkoo  rigging  Right  rights  risk  safety  Save  savings  scandal  Scheme  Schäuble  SEC  Sector  secular  security  self-regulation  service  Services  servitude  set  shadow  shadowbanking  shareholder  sheet  short-fall  short-term  Shortfall  Silicon  skill  skill-biased  skills  smallbusiness  SMB  Snowden  social  Sociopath  Software  Soto  sovereign  spaces  Spain  Special  speculation  speculative  spending  squeezed  stability  stagflation  stagnation  standard  state  STEM  sticky  stimulus  Street  stresstest  structural  student  StudentLoans  subprime  subsidies  subsidizing  Super  Supervision  supply  supply-demand  sustainability  sustainable  Swap  system  systemic  systemicrisk  systemrelevant  systemrelevanz  Taper  targeting  TARP  tax  Taxation  TBTF  technological  tension  the  theory  thinking  Thomas  TLTRO  to  Toff  too  toobigtofail  Tories  trade  trading  transmission  transparency  trap  treasuries  treasury  trickle-down  trust  trustagent  TTIP  UK  Ukrain  Ukraine  uncertainty  unconventional  underemployed  underinvestment  unemployment  unfair  unintended  union  University  unknown  unknowns  unkown  urbanisation  US  usa  Valley  value  VAR  vested  view  vocational  wage  wages  Wall  WallStreet  war  warfare  Washington  welfare  wellsfargo  western  Westminster  Whistleblower  White-collar  Why  Wikileaks  Window  Wolfgang  work  worker  workforce  working  world  Year  yield  youth  Yunus  Zero  ZIRP  zombie  £ 

Copy this bookmark:



description:


tags: