Thursday, December 17, 2009

Scotland and the Former European Union


Some very good news if you are against an independent Scotland joining the European Union!

If the economy was really bad would everyone lie about it? Yes. The CRISIS has been going on for nearly 2 years now. Lot's of talk of recovery, saving the world financial system, green-shoots and lot's of conferences and press releases and yards of financial 'news' about how things are getting better etc. It's all garbage. Many said over a year ago, myself included, that we were heading for depression and that 'stimulus' would make things worse, that governments and banks were lying about what was really going on.

They still are. Reported by Market Ticker today:

Dec. 17 (Bloomberg) -- European Central Bank officials are moving closer to forcing banks to provide more information about the collateral they give the ECB in return for loans.


You mean the ECB doesn't have full information about the paper they took in as collateral for loans? What could they possibly want to know?

Under the terms of the collateral consultation, officials want banks to provide information about individual loans such as the value of the property backing a mortgage, details on cash flow and whether the borrower is in arrears, the people said.


You have to be kidding me. The ECB is holding paper as collateral where they don't even know if the borrower is making the payments - that is, whether THE LOAN HAS DEFAULTED OR NOT?

The ECB has already tightened the rules for asset-backed securities it accepts as the central bank moves toward unwinding its emergency liquidity measures. The ECB said Nov. 20 it wants to ensure “high credit standards” are met and aims to restore “the proper functioning of the ABS market.”

Everyone ready for the big explosion? Or are you still smoking them green-shoots? If it wasn't for the fact that the world needs a rival economic, financial and political democratic superpower to contain the US, I'd be talking about Scotland doing a Norway. We may have to as there soon may not be any Europe left.

1 comment:

Bob said...

"The ECB said Nov. 20 it wants to ensure “high credit standards "
Ha ha. How many years has it failed to balance it's own books and get it's annual audit signed off ?