Sunday, August 15, 2010

Hair Of The Dog ?

How to cause a global implosion

Both parties in Congress imposed the obligation on lending banks to make 25 per cent of their mortgage business commercially unjustifiable (following an upgrade of banking debt). President Bill Clinton ordered the giant government-sponsored mortgage companies (generally known as Fanny Mae and Freddie Mac) to put more than half of their huge mortgage portfolios into such investments

Conrad Black( Stand point)

How to fix it

The banks would be forced to lend: "I will redouble our efforts to ensure that bank lending agreements from banks that have benefited from taxpayer subsidy are being honoured – especially for small and medium enterprises. We do not expect to see viable businesses deprived of credit or working capital by banks that are largely owned by the taxpayer, or the general beneficiaries of wider public support

Vince Cable (In his first major speech as Business Secretary )

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