October 6th, 2011

Investors Chronicle on Osborne’s corporate bond purchase programme…

“If banks know they can pass on credit risk to the state, they’ll not bother to assess it properly. Like US mortgage lenders, they’ll lend to every fool and con-man who walks through the door. Yes, lending will flow freely, but to the worst malinvestments – all of them underwritten by you and I.

This isn’t the only likely source of malpractice. What if the government were to buy (say) the bonds of Tesco but not Sainsbury’s? This would give the former a state-sanctioned competitive advantage. Even if we disregard free-marketers’ quibbles about distorting price signals – and we shouldn’t – this is a recipe for lobbying, rent-seeking and outright corruption.”


  1. 1
    Billy Bowden is the greatest umpire ever ! says:

    Bonkers idea.

    The government has NEVER backed a winner.

  2. 2
    Billy Bowden is the greatest umpire ever ! says:

    Then again, I could go and ask them for a couple of million to set up a buisness that makes gatso proof number plates?

    What ya reckon?

    • 5
      Anonymous says:

      A company selling Hookers and Blow will likely get a more favorable response from Gideon?

    • 6
      sockpuppet #4 says:

      you could probably do that for less than a few grand.

      I come to you with my registration number on a bit of paper.
      You type it into a standard machine for making them.
      I fit the plates on my car.
      Hey presto, they’d never know who i was.

  3. 4
    The heir to Blair says:

    This is more communist than Brown would dared to have been….

  4. 7
    Ed the Axeman says:

    Set up a company A

    Get the loans from the government

    Transfer the assets to company B

    Company B goes bust.

    • 9
      Gerry Mandering says:

      Been there, done that.

      It’s been called regional selective assistance and was designed to bribe foreigners to bring jobs to the periphery.

      Lots of EU money in it too – as long as you heavily brand it with the EU flag

  5. 8
    Colonel Madd says:

    Whilst its jolly admirable to put in a puff for your chums in t’City you might want to ask how such geniuses at assessing risk have managed to end up with their vaults piled high with the deeds to tarpaper shacks in Alabama,Greek/Irish/Portugese etc Gilts and various other forms of economic lunacy

    Even the dumbest clerk at the DHSS in Wolverhampton is better at assessing risk than these fucktards.

    The current procedure for assessing loans to Uk manufacturers is simply to say “No”

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Guido-hot-button (1) Guido-hot-button (1)

Cathy Jamieson MP, Labour’s Shadow Treasury minister, commenting on Treasury analysis of the economic impact of tax changes…

“If the Treasury is looking at the economic impact of tax changes, then surely it should examine the impact of the rise in VAT and cuts to tax credits? George Osborne’s £12 billion VAT rise knocked confidence, helped to choke off the recovery and has cost families £1,350 over the last three years.”

orkneylad says:

What’s he been doing FFS, mining bitcoins?

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