[mattduke]

$this->bbcode_second_pass_quote('', 'C')hancellor Alistair Darling is to give new powers to the Bank of England to mount secret rescue operations for banks requiring emergency funds.

[davep]

Christ, they won't fund proper nursery care, but they'll look after the bankers.

France is no better. They're currently getting told off by EU bigwigs for stating that they will defend Societe Generale against foreign bids.

What happened to their much-vaunted free-market they're foisting on unprepared third-world countries?

[Twilight]

Thanks, I posted a discussion of this on page 208 of the housing collapse thread, but everyone ignored it.

Including this gem:

$this->bbcode_second_pass_quote('BBC', 'H')e may also propose that the protection scheme for depositors should be funded by the banks up-front.

[mattduke]

Sorry twilight.

[sjn]

$this->bbcode_second_pass_quote('Twilight', 'T')hanks, I posted a discussion of this on page 208 of the housing collapse thread, but everyone ignored it.

[americandream]

$this->bbcode_second_pass_quote('davep', 'C')hrist, they won't fund proper nursery care, but they'll look after the bankers.

France is no better. They're currently getting told off by EU bigwigs for stating that they will defend Societe Generale against foreign bids.

What happened to their much-vaunted free-market they're foisting on unprepared third-world countries?

[Twilight]

$this->bbcode_second_pass_quote('mattduke', 'S')orry twilight.

[mmasters]

It's all about keeping the general public's trust in the system, that's the only way the illusion of our money system can maintain itself. Once trust in the system is broken the task of ressurecting the scheme becomes incredible to the point that has historically taken decades of hard work to accomplish it.

[Iaato]

$this->bbcode_second_pass_quote('', '"')"It's unclear whether the devastating run on the Rock could have been prevented by the kind of clandestine help which the Bank may in future be able to provide," said the BBC's business editor Robert Peston."

[gampy]

$this->bbcode_second_pass_quote('davep', '
')What happened to their much-vaunted free-market they're foisting on unprepared third-world countries?

[mattduke]

Deposit insurance schemes are nothing new. From the "New York Safety Fund" founded 1829, to the S&L FSLIC. They never work. They always instantly fail. They only make the problem worse by encouraging risks and lulling the public. FDIC is just a placard.

[seldom_seen]

This does not end well.

I don't care if you're a Keynesian economist on all sorts of anti-depressants that reads "The Secret" all day. There's no way you can spin this in to a happy ending.

The secret banking sounds very much like the Fed's "term auction facility." Where they download billions anonymously to our insolvent banks.

$this->bbcode_second_pass_quote('', '[')b]Federal Reserve to auction 60 bln dlrs in February

13 hours ago

WASHINGTON (AFP) — The US Federal Reserve said Friday it would auction a total of 60 billion dollars in February in two separate transactions to pump liquidity into the stressed banking system.

http://afp.google.com/article/ALeqM5gaA ... blmEccRYVA

[shakespear1]

$this->bbcode_second_pass_code('', 'Christ, they won't fund proper nursery care, but they'll look after the bankers. ')

Most people don't understand what is happening now. Thus any such move for them seems like the right thing to do as ... "Well they must know what they are doing !!! " (those in authority know best)

[Twilight]

$this->bbcode_second_pass_quote('Iaato', 'C')landestine help being openly talked about by our leaders--how did we come to this?

[manu]

$this->bbcode_second_pass_quote('mmasters', 'I')t's all about keeping the general public's trust in the system, that's the only way the illusion of our money system can maintain itself. Once trust in the system is broken the task of ressurecting the scheme becomes incredible to the point that has historically taken decades of hard work to accomplish it.

[Iaato]

$this->bbcode_second_pass_quote('Twilight', 'I') know, but the quantity of deposits in the UK banking system that could go pop in a general financial collapse is trivial in its inflationary effects if reprinted compared to the wholesale bailout of the entire British banking system, so I must challenge what you are implying.

You have to separate the two in your mind, for they are completely different issues. They are an order of magnitude apart in size. One is an absolute necessity to avoid revolution, the other is not necessarily so. One can be performed with survivable damage done to government finances, the other would be suicide, instant and irreversible. One would be merely inflationary and unlikely to prevent a deflationary collapse in the long run, the other would be hyperinflationary. One would be viewed with sympathy pains elsewhere in the world, the other would mean a complete debasement which would be mercilessly punished.

Thus as far as I am concerned, the bailing out of depositors by a government is a largely practical question and has little to do with the deflation vs. hyperinflation debate.

[eastbay]

mmasters, that is one mighty hilarious little video you have there. The best I've seen in along time. True cool humor.

[Iaato]

More chicanery from the other side of the pond. Both UK and US administrations are desperately trying to hide all of this stuff. I am fascinated.

TMF-Emergency Liquidity Assistance-FSA

[sjn]

So is the difference between deflationists and hyperinflationists here, that one group believes the decision makes will "see sense" and allow the system to deflate letting the chips fall where they may, and the other group trusts those decision makers to continue in the same behaviour irrespective of it's eventual inevitable failure?

[Twilight]

$this->bbcode_second_pass_quote('Iaato', 'E')h, you may have a point there. They simply can't bail out the entire system. So you're suggesting that the FDIC and FSCS are relatively small change, and easily bailed out?