Eurozone Crisis 'The Biggest Threat To UK'

Sky News

Newly knighted Bank of England governor Sir Mervyn King, who chairs the FPC, said there was "no reason to be worried" about UK banks' direct lending to struggling eurozone nations.

Thats fine then, no need for the UK to worry. . .

"Experience has shown that contagion has spread through financial markets, especially when there is uncertainty about the precise location of exposure," Sir Mervyn said.

Aaahhhhhh, so we do need to worry about the bad debt we don't know about. I with you so far. . . I think

He added the committee believed "greater clarity about the extent of these exposures would help limit the transition of problems to UK banks" In response, he said, the FPC was advising that major banks be forced to reveal the extent of their lending to sovereign and banking sectors.

Right, so if all the banks and money men are all upfront and honest about any dodgy dealings then we can work though the mess that we find ourselves in.

It looks like we are screwed.

My first post so please be gentle

Yes, I was trying to follow his speech, in the usual scratching head kind of way...
So we don't need to worry about the *cough* biggest threat to Britain because it isn't really a threat..
*scratches head yet again*

ETA: wanted to say and forgot, due to all the head scratching, for your first thread


ETA: Star and Flag, boy am I getting forgetful today...

It's all quite confusing, I dont think anyone knows whats going even those in charge. It seems our banks may have lent money to other banks who may have lent money to other banks who may have lent to Greek banks and as such our banks will have some exposure to any defaults I think. I could be totally wrong

WHY the hell was a Bank of England governor knighted?

Originally posted by BarmyBilly
WHY the hell was a Bank of England governor knighted?

Well, he has his finger on the green button that says "print" which is the one up from the red button that says "fire" and well. I'm speculating here, but guess he could have said, "give me a knighthood or I'll push the button"


ETA: useless spelling day...

reply to post by BarmyBilly


the biggest threat to the UK is for my money the banking system and especially its boss the BOE. We have a government that trusts a private bank with setting our interest rate and printing our money. We pay this bank so much we have to be taxed for its services - which are quite surperfluous because our government should be doing this in the first place and not putting this out to a private group of business men who literally make money hand-over-fist with no risk to themselves. They know they have made the tax payer the perfect patsy.

If the Euro Zone fails who issued the money in the first place, the banks did. However why should people in one country expect to face cripping cuts to the facilities they have paid into for years, just because a banker gave money he had no security or gold reserve to back up to another country. The buck stops with the bank for unethical banking.

Do we think that trade will stop if we leave the Euro Zone, of course it won't because we are one of the closest and biggest markets for Europe. In fact it would be far cheaper to all of us not to belong I suspect, at least we could get rid of the huge cost of belonging to it and some of its ludicrous legislation.

reply to post by thoughtsfull


It's coincidental you say that as a similar thought had crossed my mind. Sir Mirv has followed the government line since it kicked off back in '98 but maybe he had enough and was offered an incentive.

Originally posted by woodwardjnr
It's all quite confusing, I dont think anyone knows whats going even those in charge. It seems our banks may have lent money to other banks who may have lent money to other banks who may have lent to Greek banks and as such our banks will have some exposure to any defaults I think. I could be totally wrong

To be honest, I think these debts have been repackaged and resold so many times I reckon no one has a clue who's holding the stinkbomb.

I firmly believe its a matter of when, not if.

Originally posted by roomfor2
reply to post by thoughtsfull

 

It's coincidental you say that as a similar thought had crossed my mind. Sir Mirv has followed the government line since it kicked off back in '98 but maybe he had enough and was offered an incentive.

I think he wants out while the going is good, I mean, who would want to be the Governor of the Bank of England right now with another crisis looming.. I guess, this knighthood will keep him in line with the Government (for the time being at least) But really, I have not idea how we as a nation are going to get out of this mess (short of real new wealth and jobs )