It was helped by the three-month ban on \’short-selling\’ – borrowing shares you don\’t own just to sell them, which had earlier in the week threatened to provoke Britain\’s second bank run as our top mortgage lender HBOS reeled from its impact.
You do know that short interest in HBOS was under 3% last week, don\’t you? That short selling had a trivial effect upon the share price?
That means new public banks, new regulatory structures, new managed exchanges for securitised debt and public insurance of securitised assets……Similarly with the new technology of securitisation. It enables the economy to sustain more debt. The choice is to condemn the new technology and force an economic crash as debt and credit regress to presecuritisation levels. Or it is to devise a system of public banks, government-supported insurance companies and a robust regulatory framework that allows the economy to enjoy the benefits.
Is he seriously suggesting that the government should insure bonds? Really?
Jebus, Mrs. Hutton\’s property empire must be in worse shape than we thought.