Bank of England warns of problems

The BOE has left the interest at .50% but is raising it"s Bond buying Programme substantionally. Apparently there are severe strains in the Funding of Banks
and inflation is set to increase, which threatens the U.K. recovery

So what happened to the stress test ordered 2 years ago after the Lehmann crisis, were they checked properly was the test weak? We had to bail out
RBS and Building Society then, no chance of ever being repaid and now we have another possible bail out situation. Shame on the FSS for not monitoring
properly and all these mickey mouse deals like Hedge Funds, short selling etc allowed to contaminate Banks.

£75 BILLION pumped into the economy, more devaluation ......it"s like monopoly money.

A few comments on the quantitive easing, why is it the public has a better grasp of things than those in charge.???

Posted by: Oh Polemic on October 6, 2011 5:33 PM

Brace yourself for the £10 loaf
everybody!

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Posted by: Badwolf from England on October 6, 2011 5:32 PM

Over a decade of liebor lies

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Posted by: Groucho6 on October 6, 2011 5:31 PM

So why didnt you say those words 18 months ago
King?........you like your tory mates tried to give the impression there WASNT a
recession

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Posted by: TheTruthUK on October 6, 2011 5:28 PM

Yes yes we all know that already, just report
the riots when they start.

Cheers

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Posted by: NO Goats Toe on October 6, 2011 5:28 PM

CAUSED By your friendly CASINO PYRAMID DEALING
BANKS
OCCUPY BOND STREET JUST LIKE WALL STREET

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Posted by: flick5 on October 6, 2011 5:26 PM

dont they just love to depress
you

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Posted by: Gap on
October 6, 2011 5:25 PM

Isn't this the same thing Labour did, only under
a different name. it's time they all stopped squabbling and got their heads
together to sort this lot out. I for one am fed up with all the muck slinging.
Sort it now.

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Posted by: robbian on October 6, 2011 5:14 PM

I do not think that "talking down" the economy,
as King is doing at present, is beneficial to the short and medium terms
prospects of the country. The UK has not fallen into negative GDP and looks
unlikely to do so. The damning critisizm about the EU coming from the other side
of the Atlantic is probably doing favours to nobody. This from a country with
the biggest fiscal debt in the world.

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Posted by: Mallowe on October 6, 2011 5:11 PM

.....and this time who's fault is it?. Correct,
the Tories, the same time as the last crisis!

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Posted by: unknown1 on October 6, 2011 5:11 PM

it's called we're all Doomed by greed and get
ready

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It's scary panda, very scary. IMO we're not going to see very much growth for at least two-three years.

Where's it going to end? l really feel for those who cannot find work, living on benefits can't be fun and everything is getting so expensive.

IMO all countries in the euro should stop paying in until each country has started their own recovery. Good money is being thrown after bad now.

margaret wrote:It's scary panda, very scary. IMO we're not going to see very much growth for at least two-three years.

Where's it going to end? l really feel for those who cannot find work, living on benefits can't be fun and everything is getting so expensive.

IMO all countries in the euro should stop paying in until each country has started their own recovery. Good money is being thrown after bad now.

Your"e right margaret, Merkel and Sarkozy run the EU, both up for re-election next year were determined to keep Greece afloat for fear of the euro and
EU possibly dismantling.The Greeks are very volatile and determined not to accept the austerity measures , but paying interest off 67.5% on two year
Bonds, what hope did they have with that interest rate.!!! It"s a mess and not going to get any better for a long time, the U.S. too is feeling the pinch.

What I would like to know is, what happened to the Stress Test taken after the Lehmann catastrophe , was it not thorough enough? When are Governments going to tame Banks?,

Panda

What has gone wrong is that it's a Bank crash in reverse.

The Bank of England has just taken over from all the Banks and by printing money is trying to stop it happening to everyone in the Country who holds property or cash. They are also trying to save their own necks. Because if they don't control this in some way it won't be them or the Bankers jumping out the window - it will be us. They have been trying to hold this tsunami off for long enough to pay down their own debts and re-mortgages and transfer their cash abroad or into gold.

This is not looking good.

Hi Angelique, yes, it looks as though this crisis will run and run.

As an aside, ANZ Bank, the 20th largest in the world is capping wage increases to 1% for 900 top Executives, can you think of one U.K. Bank
which did this? No, they still took their Bonuses and Fat Pensions without any murmur of protest from the Goverment which had bailed them
out.

sky news


Ed Miliband's newly-reshuffled top team will use an Opposition Day
debate to accuse the Government of "choking off" the recovery.


The showdown comes after a leading think-tank suggested the UK was
making the slowest comeback from recession since the end of the First
World War.


The National Institute of Economic and Social Research (NIESR)
estimated that GDP grew at 0.5% in the three months to September,
compared with 0.4% the previous quarter.


However, it said the economy was still 4% below the pre-recession peak.

margaret wrote:It's scary panda, very scary. IMO we're not going to see very much growth for at least two-three years.

Where's it going to end? l really feel for those who cannot find work, living on benefits can't be fun and everything is getting so expensive.

IMO all countries in the euro should stop paying in until each country has started their own recovery. Good money is being thrown after bad now.

I agree. We've all spent too much, lived too well for far too long. People who have grown up just expecting everything to drop into their laps are going to get a nasty shock. When are people going to realise there is no money.

The Gvt is making older people work almost until they drop dead and yet the number of young unemployed is rising....I just don't get it. Doesn't make one iota of sense to me.

Morning angelina,

As usual, it"s Joe public who will pay for this, not the Banks.!!! ANZ, an Australian Bank 20th largest in the World immediately ordered the top
900 executives to only receive a 1% increase in Salary........what did the Government do when it lent RBS £79 Billion? make no stipulations.
As a result the ex Chairman responsible was allowed to keep his half a million £ a year Pension and the new Chairman carry on paying out bonuses.

At a Meeting in the House of Commons yesterday between Several Major Banks and a Committee to discuss the ring fencing of Retail Banking,
Barclays Chairman said he could accept it , I think in 7 yrs time but warned it would increase Bank Charges for everyone.!!!! What a b****y
cheek, jeopardising Savers money and charging them for it.???
when are Governments around the World going to stop Banks playing Monopoly with Customers money???? Who was it willing to lend 125%
Mortgages which started all this.?

Panda wrote:Morning angelina,

As usual, it"s Joe public who will pay for this, not the Banks.!!! ANZ, an Australian Bank 20th largest in the World immediately ordered the top
900 executives to only receive a 1% increase in Salary........what did the Government do when it lent RBS £79 Billion? make no stipulations.
As a result the ex Chairman responsible was allowed to keep his half a million £ a year Pension and the new Chairman carry on paying out bonuses.

At a Meeting in the House of Commons yesterday between Several Major Banks and a Committee to discuss the ring fencing of Retail Banking,
Barclays Chairman said he could accept it , I think in 7 yrs time but warned it would increase Bank Charges for everyone.!!!! What a b****y
cheek, jeopardising Savers money and charging them for it.???
when are Governments around the World going to stop Banks playing Monopoly with Customers money???? Who was it willing to lend 125%
Mortgages which started all this.?

Hi Panda. Wasn't Northern Rock the worst offender for those mortgages? I could be wrong. It should never have been allowed by any bank.

Yes Northern Rock did oversell Mortgages, but RBS was equally to blame for overlending. The last I heard Brian Kennedy was indebted
to RBS for some £21 million and had renaged on a loan agreement, also with a Loan of £7 million from an Australian Bank.

As for the Northern Rock crisis, it was discovered that NR owned an off shore Company "Granite" registered in Jersey, that has to tell us something.!!!!!!

The stress test apearently wasn't good enough, now Dexia (Begian bank) had to be saved by the state. Dexia had a whole load of Greek investments.
So the Greek situation appearently was left (on purpose?) out of the tests. Indeed it is a mess. Bring back the old sock.

Bebootje wrote:The stress test apearently wasn't good enough, now Dexia (Begian bank) had to be saved by the state. Dexia had a whole load of Greek investments.
So the Greek situation appearently was left (on purpose?) out of the tests. Indeed it is a mess. Bring back the old sock.

Hi Bebootje,

Yes indeed, Banks are so corrupt and Governments seem powerless to regulate them. Dexia is to be split into 3 Parts with France and
Luxembourg helping out. I follow the EC crisis daily so have a look, on the EC thread, it"s very interesting. Little Slovakia has thrown a
spanner in the works, although a second vote will take place today so expect some arm twisting and this time they agree.

Unemployment At Worst Level Since 1994

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10:41am UK, Wednesday October 12, 2011




The number of people without a job has hit its highest level since 1994.










In the three months to August, the total rose by 114,000 to 2.57 million.


It gives the UK a jobless rate of 8.1%, the highest since 1996.


Youth unemployment rose by 74,000, meaning the number of 16-24 year
olds without work crept closer to the one million mark - at 991,000 -
and remains at a record high with a jobless rate of 21.3%.


Other figures showed a 178,000 slump in employment in the quarter - the biggest in more than two years.







Jobs Data In Numbers

:: Unemployment total stands at 2.57 million - up 114,000.
:: 991,000 16-24 year olds are now out of work - a rate of 21.3%.
:: Claimant Count rises to 1.6 million - an increase of 17,500.

Source: ONS




















The number of part-time workers dropped by 175,000 while there was a
record reduction of 74,000 in the number of over-65s in employment.


The Office for National Statistics also highlighted the number of
people classed as economically inactive increasing by 26,000 to 9.35
million.


It said that taking the inactivity rate and the new jobless figures together, half of 16 to 24-year-olds are now not employed.


However, while the number of people claiming Jobseeker's Allowance
rose for the seventh straight month - by 17,500 in September to 1.6
million - the increase was less than expected.








young bear the brunt of unemployment rise

















Average earnings increased by 2.8% in the year to August, down by
0.1% percentage points over the previous month, giving an average wage
of £463 a week.


The Government has admitted the wider figures are disappointing.


Employment Minister Chris Grayling said: "It is clear that we are
seeing the effect of the international economic crisis on the UK labour
market."


He told Sky News: "We've seen big drops in growth in France and Germany...it underlines the scale of the challenge we now face."


TUC General Secretary Brendan Barber said the "terrible" figures were partly of the Government's making.


He said: "The government’s austerity measures have turned
unemployment into a full-blown crisis – with job losses not seen since
the darkest days of the recession.


"Worryingly, this is not simply the result of Eurozone troubles.


"This unemployment crisis is state sponsored, and areas like the
North East are paying a heavy price with more than one in ten people out
of work.


"The Chancellor’s Plan A has sent unemployment to a 17-year high.


"This country urgently needs a plan B to get people back into work."

I heard a discussion on Radio 4 this morning where people were actually discussing whether women with an employed partner should give up work and do full-time child-care. It's the usual cry! In times of economic recession, women are encouraged to be with their children. I expect we'll have a few psychologists any day now telling us how children need their mother at home. In times of a booming economy, such as a war economy, with all factories going night and day, it doesn't harm children at all to have working mothers.

Not one of the people speaking mentioned, or considered probably, that the woman in a male/female partnership may be the high earner!

I"m not racist but the first step the Government should take is to halt all imigration except for those who have jobs to go to. Next, with all
the Tradesman out of work, set up Workshops in all High unemployment areas, there are plenty of unoccupied buildings, unemployed Builders,
Decorators, Plumbers, etc who could train out of work youngsters with no skills. If they refuse to attend the courses until they are fully trained
they lose their unemployment benefit.

Refuse to house single Mothers while they have Parents they can live with. there is absolutely no excuse for young girls to get pregnant
today, Family Planning ensures a free supply of contraceptives, even a pill that lasts for months instead of remembering to take one daily.

Tough action is called for and this gimme gimme gimme culture has to stop.

British Banks Struck By Rating Downgrade

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4:06pm UK, Thursday October 13, 2011


Mark Kleinman, City editor



The ratings agency Fitch has delivered more grim news for Britain's
banks after downgrading the taxpayer-backed lenders Lloyds Banking Group
and Royal Bank of Scotland.










Fitch brought forward an announcement detailing the downgrades following their disclosure this morning by Sky News.


The agency's decision follows a similar move last week by Moody's, which downgraded the creditworthiness of 12 of Britain's biggest banks and building societies.


Fitch is initially understood to have told the country's major high
street lenders on Thursday morning to expect a statement about the
review for downgrade after the stock market closes.













In its statement, Fitch cited similar reasons to Moody's for the downgrades:


"The revision ... reflects Fitch's view that support dynamics are changing in the UK.


"The banking system is not only large relative to the UK economy, but
there is also more advanced political will to reduce the implicit
support for the country's banks, building on The Banking Act 2009 and,
more recently the various policy recommendations of the Independent
Commission on Banking (ICB)."


Both the state-backed banks Lloyds and RBS have had their long-term ratings downgraded to A from AA-.










RBS Share Price 1-Day Chart













Lloyds Share Price 1-Day Chart

It was announced a couple of days ago that RBS and Lloyds are investing with a couple of other Firms in a big Construction Business....like
Britain is actually constructing anything? Where is the Regulator, who is looking after the Taxpayer by ensuring these Banks repay their debt?

Now they are downgraded who is going to lend them more money to stay afloat? I"m disgusted that no one is monitoring ALL the British Banks.

RBS shedding 5,000 jobs, just after announcing investing in a Construction Company!!!!

Protesters in Times Square are urging people to move their accounts from the major Banks to Commumity Banks, maybe we should do the
same as long as Building Societies could not be taken over by the Banks...ever.!!!

Santander, a Spanish Bank, was given a Licence about 3 years ago, promptly bought Halifax Building Society and now is in as much trouble as all the other Banks, who was responsible for checking out Santander?

Panda wrote:RBS shedding 5,000 jobs, just after announcing investing in a Construction Company!!!!

Protesters in Times Square are urging people to move their accounts from the major Banks to Commumity Banks, maybe we should do the
same as long as Building Societies could not be taken over by the Banks...ever.!!!

Santander, a Spanish Bank, was given a Licence about 3 years ago, promptly bought Halifax Building Society and now is in as much trouble as all the other Banks, who was responsible for checking out Santander?

WHAT THE PROBLEM WITH SANTANDER?
MY RBS BRANCH IS SUPPOSED TO CONVERT TO SANTANDER NEXT SPRING.

Panda wrote:I"m not racist but the first step the Government should take is to halt all imigration except for those who have jobs to go to. Next, with all
the Tradesman out of work, set up Workshops in all High unemployment areas, there are plenty of unoccupied buildings, unemployed Builders,
Decorators, Plumbers, etc who could train out of work youngsters with no skills. If they refuse to attend the courses until they are fully trained
they lose their unemployment benefit.

Refuse to house single Mothers while they have Parents they can live with. there is absolutely no excuse for young girls to get pregnant
today, Family Planning ensures a free supply of contraceptives, even a pill that lasts for months instead of remembering to take one daily.

Tough action is called for and this gimme gimme gimme culture has to stop.

Some great ideas there Panda. Far too good for MP's to think of or implement.

You maybe onto something there though, those unemployed builders, electricians and plumbers could receive extra money for doing some training. Sure we can't really afford to do it, but it's an investment....

Panda wrote:I"m not racist but the first step the Government should take is to halt all imigration except for those who have jobs to go to. Next, with all
the Tradesman out of work, set up Workshops in all High unemployment areas, there are plenty of unoccupied buildings, unemployed Builders,
Decorators, Plumbers, etc who could train out of work youngsters with no skills. If they refuse to attend the courses until they are fully trained
they lose their unemployment benefit.

Refuse to house single Mothers while they have Parents they can live with. there is absolutely no excuse for young girls to get pregnant
today, Family Planning ensures a free supply of contraceptives, even a pill that lasts for months instead of remembering to take one daily.

Tough action is called for and this gimme gimme gimme culture has to stop.

Panda, I think your comments would be happily excepted in this new government, have you ever thought of been an MP, forget that Panda you are far to clever and nice person for that

Thanks Margaret and Lily of the Valley, my comments are so obvious you have to wonder why no Politician has not thought about some of
my suggestions. Your"e right LOTV, I wouldn"t last two minutes in Parliament, I don"t suffer Fools gladly.

I might just write to David Cameron and see if I get a reply.........he will be lucky to last out the 4 years, complete reactive Prime Minister.

Youv"e got to hand it to the Americans ........millions of dollars and hundreds of names of U.S. Citizens are to be handed over to the Government from Swiss Bank accounts suspected of Tax avoidance.

When will Britain follow suit.