Britain's bust banks buying bulk of Britain's debt

[DimPrawn]

Banks buy bulk of £39.8bn of new gilts - Telegraph

Britain's banks have emerged as by far the largest buyers of Government debt in the last six months, as demand from other UK investors and foreign buyers fell away.



So we bail out the banks with printed money and they buy govt debt with it? This is how our new economy works?


I feel much happier buying Gold thanks.

[AtW]

BoE can't or does not want to be seen as direct buyer of gilts, that would be blatant money printing, however if banks buy same paper and then promptly resell to BoE then all is fine and it's not money printing but rather "providing liquidity" to the banking system...

[MrMark]

Banks buy bulk of £39.8bn of new gilts - Telegraph


Britain's banks have emerged as by far the largest buyers of Government debt in the last six months, as demand from other UK investors and foreign buyers fell away.



So we bail out the banks with printed money and they buy govt debt with it? This is how our new economy works?

.

This sounds great. Almost as good as perpetual motion. Plus we make money on the interest as the debt is paid back! We should spend more - next year we'll all be millionaires

[DimPrawn]

BoE can't or does not want to be seen as direct buyer of gilts, that would be blatant money printing, however if banks buy same paper and then promptly resell to BoE then all is fine and it's not money printing but rather "providing liquidity" to the banking system...

Phew! That's alright then.

I'll sell my gold and buy govt debt too. Sounds like a one-way ticket to riches.

[OwlHoot]

Britain's banks have emerged as by far the largest buyers of Government debt in the last six months, as demand from other UK investors and foreign buyers fell away.

and in return the Government won't kick up a fuss when banks propose to start charging us for the privilege of having a current account (in credit).

So yet another indirect tax.

[AtW]

and in return the Government won't kick up a fuss when banks propose to start charging us for the privilege of having a current account (in credit).

Why do you expect it to be free? If you think you can manage without bank account then give it a go, and if you can't then it has got some intrinsic value in that service.

It is fine for banks to make money from normal banking activities like providing current account services, transferring money etc.

It is not fine when banks offer those account for free and gamble that money in world casinos.

[OwlHoot]

Why do you expect it to be free? ...

Jesus, give me strength!

If you have a current account, in credit, then that is money the bank is holding. So you'd be paying them to profit from your money.

HTHBIDI, as Susguru would say

[AtW]

If you have a current account, in credit, then that is money the bank is holding.

Most people don't have anywhere enough to cover cost of bank account, say for my personal account I don't have to pay monthly fee if I keep balance over £5k. That's probably what it takes for bank to break even on this whole thing.

[TimberWolf]

I feel much happier buying Gold thanks.

I see gold has hit yet another all time record today.

[AtW]

I see gold has hit yet another all time record today.

Are you saying that DimPrawn's buying power is so big that he can shift the markets?