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  1. Yes, I completely agree with you. Unfortunately I don't know what the correct vocabulary is to describe it. In fractional reserve banking, a financial institution is only allowed to lend up to a maximum multiplier of its deposits and certain other balance sheet items. In reality, in our country and most other large economies, a bank can lend without any technical limit because they create money at the point of granting a loan. I go to Barclays and ask for a £100 quadrillion loan. They grant that and create £100 quadrillion of money in a Barclays account. At that point the net effect on Barclays' balance sheet is zero. They don't go bust. On day two I use that £100 quadrillion to buy an overpriced bedsit in Islington and transfer the money to the seller's account with NatWest. Everything is fine until that evening when all transfers between banks are summed and any net changes have to be accounted for. At this point Barclays are found to owe NatWest £100 quadrillion and need to borrow that amount from other banks or deposit equivalent assets with the BoE. They can't so they are screwed. Therefore Barclays shouldn't have created the money as they knew they wouldn't be able to balance the books once it was used. However, it doesn't stop them creating that money in the first place.
  2. Excellent description. Note this shows again that we do not have fractional reserve banking in this country. The concept is a fallacy.
  3. stoobs

    What's going to collapse next...

    Aren't the closed shops at Broadmarsh part of the big redevelopment that is due to complete in 2021?
  4. stoobs

    Recession indicators

    The chart in subutai80's post addresses a key issue with the OP's charts - that surely potential recession indicators need to include enough historical data to cover the past few recessions (or at the very least the last one!) in order to spot any relevant patterns.
  5. In my limited experience, nothing screams 'the banks have a problem!' quite as loud as a finance minister telling us out of the blue that the banks don't have a problem.
  6. stoobs


    The earth is always tilted on its axis. It has absolutely nothing to do with the distance between Earth and Sun.
  7. stoobs


    You're describing the winter solstice (today). Both equinoxes are 3 months away.
  8. stoobs


    I'm confused by the title of this thread. Anyone care to explain?
  9. stoobs

    Gatwick Drones

    Flight Radar is currently showing around ten ground units moving around at Gatwick. No idea if this is unusual but can't see any equivalent units at Heathrow.
  10. Rejoice, retail is saved! Hmm, hang on a minute.
  11. Can I just say what a pleasure it is to debate this issue in a reasonable environment. I'm well aware I'm in a minority as a Remain voter on this site, but if the wider population (and our elected representatives) could make the same effort to genuinely understand each other's viewpoint we'd live in a much fairer society in or out of the EU. Particularly in the age of social media we seem to be descending into a world where any attempt at thoughtful debate is immediately drowned out by dog whistle extremism from all sides and we get nowhere.
  12. I'm in the same position. I hope house prices move to historical levels in comparison to wages. However as the father of two young boys I'm terrified by the prospect of a return to the regular large-scale European conflicts we had for several hundred years until WW2, and the associated slaughter of our young men at the whim of the ruling elite. From my perspective, the EU and it's forerunners have achieved unprecedented political stability on this self-destructive continent in spite of the many things that are wrong with the way the EU is run. On that single issue I voted to Remain. I couldn't find a way to fight my way through the ridiculous campaigns of either Remain or Leave to obtain any truth so just voted in a purely selfish way to protect my boys.
  13. You voted leave because you thought it would making housing more affordable? Could you explain the reasoning behind that?
  14. This bit is particularly thought-provoking. At best they stand to lose a chunk of their prior London gains. At worst they risk negative equity if they've tried to become lord of the manor in the Shires. In some locations that suffered the greatest influx it could lead to decades of the top-end of local housing being frozen as the occupants are unable/unwilling to crystallise their losses.