Wednesday, April 16, 2008

A Very Bad Feeling

What the bankers told Brown at breakfast

I have a very bad feeling Gordo's given away the store. Again.

The word is that the Bank of England is about to do what R5's finance popsy just referred to as a swapsy. Which means they will swap nice clean gilt-edge government bonds for a great steaming wodge of the banks' dodgy mortgages: the very stuff the banks don't want themselves.

We haven't yet seen the details, such as how much of a "haircut" the banks will be made to take. But for taxpayers it doesn't look good.

How do we know? Both Barclays and HBOS shares have gapped up today by nearly 7%.


PS There really are some ace vids on YouTube. How else would items such as the above get an airing?

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