How bad must things be to do this?
http://news.bbc.co.uk/1/hi/business/7516830.stm
To quote:
Alan Cleary, the managing director of Edeus, admitted this would mean making a loss on each mortgage.
"It's the lesser of two evils," he said.



How bad must things be to do this?
http://news.bbc.co.uk/1/hi/business/7516830.stm
To quote:
Alan Cleary, the managing director of Edeus, admitted this would mean making a loss on each mortgage.
"It's the lesser of two evils," he said.





^^^ this shows a very clear reluctance on the part of foreign investment banks / sovereign wealth funds to buy ANY sort of risky mortgage paper ... which in turn means no capital available with which to make new loans. These cash back / buyout offers simply show what the true cost (i.e. wholesale interest rate) now must be for banks that have dabbled in risky loans for a large part of their portfolio. The UK and US are basically in the same situation re this issue, as both of our currencies are based on debt rather than commodities / exports.
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