tag:blogger.com,1999:blog-36939759.post3170304640351532300..comments2024-01-17T07:03:57.842+00:00Comments on The Mad Ranter: Where's the money gone?FlipChttp://www.blogger.com/profile/09449939046593105926noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-36939759.post-3224029452018270392008-10-01T15:01:00.000+01:002008-10-01T15:01:00.000+01:00But how else are they going to pay the bloke who a...But how else are they going to pay the bloke who <A HREF="http://www.thedailymash.co.uk/news/business/lehman-execs-to-lead-slightly-less-opulent-lifestyles-200809161257/" REL="nofollow">adjusts the seat temperature</A> in the Mercedes?<BR/><BR/>Okay but seriously banks have always done this, just not in these quantities and to this extent. Panorama last Monday talked about this pointing out that Northern Rock had a loan-deposit ratio of 3; that is it was loaning out three times as much money as it had deposited; Bradford and Bingley had 1.666 and HSBC had 0.9something. It's not the only measure, but it's a good indicator.<BR/><BR/>Oh and annoyingly it's seems to be referred to as a percentage so NR at 1/3 would be 33% (bad) but HSBC 0.9 would be 111% (good) which as definitions claim "the higher the ratio the more the bank is relying on borrowed funds" seems to me to be counter-intuitive; then again banks do seem to love quoting everything in percentages.FlipChttps://www.blogger.com/profile/09449939046593105926noreply@blogger.comtag:blogger.com,1999:blog-36939759.post-34066473616526844792008-10-01T10:05:00.000+01:002008-10-01T10:05:00.000+01:00Ah but when I work I am paid in money. I spend tha...Ah but when I work I am paid in money. I spend that money to buy the goods I need and save some to buy the more expensive items that I could not afford that week. I decide to put that money somewhere where I am told it is safer than keeping it in the teapot on the mantlepiece. What I do not want is the bank where I have placed it for safe keeping to use it by placing bets in the stock exchange on whether the shares in your fictional company will go up or downand then when he wins goes and have a meal with wine at £1,000 per bottle and when he looses comes back to me and says "Sorry mate I've lost your money at the betting shop. Can you lend me a quid for my housekeeping this week"Don Bhttps://www.blogger.com/profile/08527913650847335006noreply@blogger.com