"“We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried.” "

Chinese premier Wen Jiabao 12th March 2009

""We have a financial system that is run by private shareholders, managed by private institutions, and we'd like to do our best to preserve that system."

Timothy Geithner US Secretary of the Treasury, previously President of the Federal Reserve Bank of New York.1/3/2009

Friday, March 13, 2009

Schizoid Gubment buying toxic debts with one hand and trying to flog / insure toxic debt with the other

One could be forgiven for thinking that theUK Government is not only confused but alarmingly schizoid - one bit is busily buying up toxic banks, toxic debts, with borrered money, mortages on the future tax payments of at least 2 generations and their newly minted / invented quasi money... or even going into the busiess of insuring bad debts.

A Parliamnetary Question yesterday laid bare the inconsistency of approach - lest we forget ur Local MP asked a very, very pertinent question. Evidently the student loan book is very, very toxic (no surpise there then !) and no-one will touch it your barge pole never mind theirs.

Paul Rowen (Rochdale, Liberal Democrat) | Hansard source

What progress has been made in selling the student loan book.

Photo of David LammyDavid Lammy (Minister of State (Higher Education & Intellectual Property), Department for Innovation, Universities and Skills; Tottenham, Labour) | Hansard source | Video match this

The Government still intend to make sales from the student loan book, but it is clear that that should be done only when we can get a good return for the taxpayer. For the time being, the market conditions do not allow that, but we will actively look to identify opportunities for a sale that represents value for money as market conditions improve.

How big is the Student Loan Book ?

Good Question , the Guradian in a report 6th November 2007 when Lord Triesman announced the sale

The student loan book is worth around £18.1bn and is expected to increase in value to £55bn over the next 10 years.

Mr Lammy was asked about this 12 Jan 2009 : Column 65W Hansard Mr. Hayes: To ask the Secretary of State for Innovation, Universities and Skills what the monetary value of the last three valuations of the student loans book were. [243335]

Mr. Lammy: The student loan book valuation for 31 March 2008 and 31 March 2007 is disclosed in the resource accounts of the Department for Innovation, Universities and Skills. (this is on line at http://www.official-documents.gov.uk/document/hc0708/hc08/0864/0864.asp but is unreadable / unopenable / cannot be de-crypted ) Prior to this, the student loan book valuation was disclosed in the resource accounts of the Department for Education and Skills.

More details on the valuation methodology for the student loan book can be found in note 21 of the resource accounts of the Department for Innovation, Universities and Skills.(Ditto valuation for accessibility)

So what the Student Loan Book is worth is anyone's guess (our is a nominal £25 Bn. ) and Mr Lammy is not anxious to give it the oxygen of publicity - nor does anyone seem to want to buy this premier loan book .. perhaps he should pop round to see Mervyn at the BOE they seem to be on a spending spree.

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(C) Very Seriously Disorganised Criminals 2002/3/4/5/6/7/8/9 - copy anything you wish