REGISTER NOW!! Why? Because you can't do much without having been registered!

At the moment you have limited access to view all discussions - and most importantly, you haven't joined our community. What are you waiting for? Registration is fast, simple and absolutely free so please, join Join Talking Horses here!

Reply to thread

Message

That was the original justification for the 0.17% above gilts. I'm 99% certain Gideon Osborne subsequently revised it down to repayment only and ceded any primacy. Given the 'time value of money' Britain will lose on the loan in terms of opportunity cost

Also Clive, one of the things local authroties in partnership with their numerous partners are normally quite good at is monitoring as there are billions of pounds going through capital programmes at anyone time, and their own annual budget isn't exactly insignificant either. You might argue that they spend a fair amount of time sweeping the **** ups under the carpet, but then isn't that what the banks were doing themselves when buddling up bad loans and refusing to mark to market. In any event, there were other private sector venture capitalists and quasi agencies capable of performing a regulatory function.

I still think there's a gap in the market to combine private sector initiative with local authority statutory powers along these lines as an LA can borrow at a rate much more cheaply then you can through the PWLB and they're also a top covenant on that loan. You can then reloan at a higher rate and still offer a better deal than the banks

<blockquote data-quote="Warbler" data-source="post: 2469981" data-attributes="member: 65228">That was the original justification for the 0.17% above gilts. I&#039;m 99% certain Gideon Osborne subsequently revised it down to repayment only and ceded any primacy. Given the &#039;time value of money&#039; Britain will lose on the loan in&nbsp; terms of opportunity costAlso Clive, one of the things local authroties in partnership with their numerous partners are normally quite good at is monitoring as there are billions of pounds going through capital programmes at anyone time, and their own annual budget isn&#039;t exactly insignificant either. You might argue that they spend a fair amount of time sweeping the **** ups under the carpet, but then isn&#039;t that what the banks were doing themselves when buddling up bad loans and refusing to mark to market. In any event, there were other private sector venture capitalists and quasi agencies capable of performing a regulatory function.I still think there&#039;s a gap in the market to combine private sector initiative with local authority statutory powers along these lines as an LA can borrow at a rate much more cheaply then you can through the PWLB and they&#039;re also a top covenant on that loan. You can then reloan at a higher rate and still offer a better deal than the banks</blockquote>

[QUOTE="Warbler, post: 2469981, member: 65228"] That was the original justification for the 0.17% above gilts. I'm 99% certain Gideon Osborne subsequently revised it down to repayment only and ceded any primacy. Given the 'time value of money' Britain will lose on the loan in terms of opportunity cost Also Clive, one of the things local authroties in partnership with their numerous partners are normally quite good at is monitoring as there are billions of pounds going through capital programmes at anyone time, and their own annual budget isn't exactly insignificant either. You might argue that they spend a fair amount of time sweeping the **** ups under the carpet, but then isn't that what the banks were doing themselves when buddling up bad loans and refusing to mark to market. In any event, there were other private sector venture capitalists and quasi agencies capable of performing a regulatory function. I still think there's a gap in the market to combine private sector initiative with local authority statutory powers along these lines as an LA can borrow at a rate much more cheaply then you can through the PWLB and they're also a top covenant on that loan. You can then reloan at a higher rate and still offer a better deal than the banks [/QUOTE]

Verification: 5 + 3 = ?