The Business Secretary has just announced plans to create a special bank to make long term loans to companies, bundle collections of loans together into 'financial instruments' and sell them to insurance companies and pension funds.
That sounds to me rather too much like the activities that bankrupted Northern Rock.
Subscribe to:
Post Comments
(
Atom
)
Posts
1 comment :
Hmm, securitised loans, no doubt with a better rating than the loans themselves because of the "unlikelihood" of them all failing at the same time -- sounds like the U.S. real estate implosion to me. These things work fine until they don't, which turns out to happen way more often than people thought it would.
Cable seemed like a bright guy until he got some power, and then he promptly managed to mess up everything he touched. Needless to say, he's now looking like a storng contender for the next leader of his party, the Hopeless Democrats.
Post a Comment