What a Mass Bank Bail-Out Does to the Currency

This is what could happen to the pound if the Treasury decides to print cash to bail out collapsing banks. The Icelandic Króna has lost 40% in value in three months. The Icelandic Króna is not the Great British Pound, the UK economy is far larger and hopefully stronger. Little Iceland could go bust and end up begging the IMF, a humiliation suffered by Britain under the last Labour government. Nothing, however, is impossible.

The FT reports some good news; $500 billion in derivatives contracts related to Fannie Mae and Freddie Mac were settled yesterday. Friday, 17 October, sees $400 billion of Lehman Credit Default Swaps (CDS) come due for settlement. If this goes through without mishap, market liquidity could improve as fears of systemic failure recede and the biggest ever stress test for derivatives contracts passes.

If…




Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

Michael Crick on Safe Seats:

“In effect, new MPs are being elected day by day now, as, amid huge secrecy, small cabals of party bigwigs pick candidates for safe seats.”

Sponsors

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.

Facebook

Leader of Anti-UKIP Protest Embroiled in SWP Rape Scandal Leader of Anti-UKIP Protest Embroiled in SWP Rape Scandal
Hollobone Agrees Tory-UKIP Pact Hollobone Agrees Tory-UKIP Pact
David Mackintosh Quits David Mackintosh Quits
Happy Ed Balls Day Happy Ed Balls Day
Campaign Report: 42 Days To Go Campaign Report: 42 Days To Go
Zac Back? Watch Our Guy News Special Zac Back? Watch Our Guy News Special
Campaign Report: 43 Days To Go Campaign Report: 43 Days To Go
Gallery Guido’s PMQs Sketch Gallery Guido’s PMQs Sketch
Farron U-Turns and Sacks David Ward Farron U-Turns and Sacks David Ward
‘Spring’ Breaks: Jolyon’s Short-Lived New Party ‘Spring’ Breaks: Jolyon’s Short-Lived New Party
More Selection Shenanigans More Selection Shenanigans
Bouattia Ousted Bouattia Ousted
David Ward Becoming a Problem for Farron David Ward Becoming a Problem for Farron
Clive Lewis Slammed by ICM for Fake News Poll Clive Lewis Slammed by ICM for Fake News Poll
Radio 4 Gossips Link Peston to Today Radio 4 Gossips Link Peston to Today
Mirror Chicken Fattened for Election Slaughter Mirror Chicken Fattened for Election Slaughter
Len Tries to Stitch Up Liverpool Walton for His Bag Carrier Len Tries to Stitch Up Liverpool Walton for His Bag Carrier
Starmer on Corbyn: Then and Now Starmer on Corbyn: Then and Now
Updates: Who’s Standing? Who’s Standing Down? Updates: Who’s Standing? Who’s Standing Down?
Banks Bottles It Banks Bottles It