tag:blogger.com,1999:blog-2948538160252327076.post4299083606127547877..comments2023-11-02T15:48:50.381+00:00Comments on UK Bubble UK Economy: The banks need more helpAlice Cookhttp://www.blogger.com/profile/05753570123987780947noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2948538160252327076.post-67801759744830506752008-07-11T12:24:00.000+01:002008-07-11T12:24:00.000+01:00Alice,Tie this in to1) The EU has just rapped the ...Alice,<BR/><BR/>Tie this in to<BR/>1) The EU has just rapped the UK for grotesque public deficit / spending imbalances<BR/>2) The Fed just surprising no-one by announcing they'll extend the temporary pawn shop for investment banks further<BR/><BR/>I'm hoping (REALLY hoping) that the UK is simply too broke to proceed with such a bailout and that this is really just a load of special pleading and political grandstanding.<BR/><BR/>Henry Paulson pretty much admitted as much on the Freddie issue.<BR/><BR/>NickAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-65674653464237581962008-07-11T12:02:00.000+01:002008-07-11T12:02:00.000+01:00This is extremely depressing. The market will cle...This is extremely depressing. The market will clear if it is allowed to, and that goes both for house prices and for funding. Prices have to fall to the point where people are willing to buy and likewise, rates for lending have to rise to reflect a sufficient risk premium to attract lenders. There will be liquidity when these processes are allowed to take place.<BR/><BR/>Wasting taxpayers money bailing out imprudent banks is a total disgrace. All that is happening is capital destruction on a massive scale in a futile effort to delay the inevitable and prevent markets from doing what they do best, which is to clear.Unknownhttps://www.blogger.com/profile/15486527630399373926noreply@blogger.com