Should Banks be Able to Use Mortgage Debt To Raise Finances From Government?
Today's morning news highlighted some further developments in the current catalogue of economic woes: Firstly, a meeting with 'the banks' at No 10. Secondly the reporting of a 'widespread' fall in house prices.
To quote 'Private Eye': are they by any chance related ?
If the government decides to provide financing to the banks in return for, or collateralised by, mortgage debt, then - under the circumstances - it should consider the appropriate pricing of risk very carefully.