Good evening. The noise you hear is me making Bibble noises with my finger on my lips as I contemplate the Bank of England's response to the Credit Crunch.
Remember my previous posting where I compared mortgage-backed securities with contaminated meat in the Pie industry ? Well, the Bank of England has decided to allow banks to borrow money from them using this second-hand toilet-paper as collateral.
"Who cares ?" I hear you cry. Before answering, please be aware of Stan's three laws of finance.
- Stan's First Law of Finance : "In any complex financial transaction, someone always gets shafted."
- Stan's Second Law of Finance : "If you don't know who is getting shafted, then it's probably you"
- Stan's Third Law of Finance : "If the Government is involved, it's definitely you"
Whatever happened to the quaint notion of letting the markets decide who survives and who fails? It seems if you're a bank then you get all the government help you need. But if you're a private citizen , you're on your own.
There is only one reasoned, sane thought-out response : take your finger, put it on your lips, and everyone repeat after me :
Bibble ! Bibble ! Bibble !