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.”


9 Comments

  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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Nick Griffin says Nigel Farage is a shill for the City, forgetting that City banks want to stay in the EU:

“Farage is a snake oil salesman, but a very good one. His supposed anti-immigration stance is all smoke and mirrors, as is his carefully cultivated image as a ‘man of the people’. The truth is that UKIP is a pro-immigration party that exists to lobby for the interests of the City of London.”



Alexrod says:

It’s money innit.


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