Credit Crunch 2, This Time it’s ‘Your’ Money
May 17th, 2008 | By Ben Traynor | Category: International InvestingLike the cast of a bad sitcom, the stars of the credit crunch are reuniting.
Like the cast of a bad sitcom, the stars of the credit crunch are reuniting.
Now the days are not only longer but finally starting to warm, what happened in the financial world this week? Well, on Monday Mervyn King stepped up to the plate and offered a deal for UK banks. They could swap assets of unknown worth mortgage-backed securities for those of known worth government bonds .
‘Read my lips – no new taxes’. That’s the promise, made in 1988, that’s widely credited as having scuppered George Bush Snr’s re-election chances come 1992.
The credibility of Libor is in doubt so interbank lending rates could be higher than reported. If estate agents were woodworm, many a British high street would complain of infestation.