"“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

Wednesday, March 25, 2009

UK Gilts auction fails - ther IS a limit to what the market will buy .....

Storms can be presaged by the blowing of straw in the wind"of . Well the market landed a hefty bale of the stuff on Gordon Brown and Alastair Darling's desk today.

Today, in the normal way of things the Treasury Debt Management Office - auctioned £1.75bn of a 40 year bond ( of interest principally to annuity issuers - insueres pensions etc.,).

The market picked up 93% or only £163 Mn. of the issue.

The Debt Management Office has a Herculean task of borrowing at least £147.9bn of gilts in the next 12 months - there are many who say uncontrolled public expenditure might mean they could be looking for £200Bn.

There must be some sweaty palms in the Treasury this evening.


Anonymous said...

"Second is the question of accountability. The public, including United fans, cannot know who holds the debt in United. When the Glazers bought the club for £831m, the family itself paid £272m cash, £284m was loaned by their bank, JP Morgan, and "syndicated" to other banks, and the other £275m, which the family could not borrow at standard rates, was advanced at very high interest by three hedge funds, Citadel, Och-Ziff and Perry Capital. In 2006 the Glazers managed to refinance those original loans, but there has been no public disclosure of who holds the £425m, the other £90m, orthe high-interest £152m "payment in kind" loans"...


Anonymous said...

PFI schemes will have to come "on-balance" from April 2009.

More info from this Irish Accountancy site here (discussing the effects on Northern Ireland).

Surely this will mean more debt on the government's books?

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