Polly Today

Sorry?

US sub-prime debt has topped $100bn

I know Polly doesn\’t do finance but really….here it is in full context:

The UK is still at the top of the G7 developed countries for growth, and employment is still rising, with interest rates low and falling. Meanwhile world oil prices have tripled, US sub-prime debt has topped $100bn, and in Germany not one bank but three have had to be taken over by state banks after hitting the rocks.

Wht she means is that the acknowledged losses, the ones that banks have owned up to, are $100 billion. And even that figure is wrong (too low). Sub-Prime is well over a $ trillion. Sigh.

So Labour needs to attract deeper loyalty, better reasons why people should support it –

Anyone got any good ideas? I\’m completely out I\’m afraid.

8 thoughts on “Polly Today”

  1. According to this recent news report:

    “Banks may need to raise as much as $143bn (£77bn) to weather the credit crisis, Barclays Capital reports. They say the banks will need extra money if bond insurers, who insure the products at the centre of the sub-prime crisis, lose their top credit ratings. . . The world’s largest banks have already admitted losing more than $100bn from mortgage bonds gone bad.”
    http://news.bbc.co.uk/2/hi/business/7209839.stm

  2. Tim, don’t you make the same mistake you are criticising Polly for in this post? You say:

    Wht she means is that the acknowledged losses, the ones that banks have owned up to, are $100 billion. And even that figure is wrong (too low). Sub-Prime is well over a $ trillion. Sigh.

    Sub-prime debts might be over $1 trillin, the losses (acknowledged) $100bn, but those are different things – you shouldn’t mix the two together. Or are you saying subprime losses are over $1 trillion?

    Her $100bn is either wrong or too low, but not both, are you sure subprime losses have been ‘well over’ $1 trillion?

    Tim adds: My thinking was that “sub-prime” is the amount lent. That’s well north of $ trillion. Losses announced are the $100 billion, although I’m sure that number is higher than that now.

  3. The German banks were already part of the State run banking system. In the good old days, these banks were guaranteed by the government, hence they borrowed at better terms than private banks and could, in turn, offer better rates. This practice was stopped by the EU, so the managers of the state banks saw no better business plan than investing in US sub-prime casino bets.

    Given that the State run banks in Germany were beaten like a rented mule on the subprime market, perhaps having the government run Northern Rock is not the best of plans.

  4. God she’s loathsome. She has loyalty to New Labour like a gauleiter has loyalty to Hitler. The woman is blind; blinded by her own middle-class loathing.

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