tag:blogger.com,1999:blog-1141932539860553199.post3929996515642774987..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: George Osborne talks sense: shock.Mark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger22125tag:blogger.com,1999:blog-1141932539860553199.post-15588506885782547122015-03-26T20:48:13.515+00:002015-03-26T20:48:13.515+00:00Random, Mark,
Yes, I agree, no-one should have to...Random, Mark,<br /> Yes, I agree, no-one should have to pay VAT, but if the banksters had to pay it, perhaps there would be a bit more support for its abolition.<br /><br />John M. Very few businesses in the UK work on cost plus and I'd be very surprised if the banks were one of them. Therefore the banks' costs have no relationship to their charges, simply to their profits.Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-56791193765822110492015-03-25T21:50:02.608+00:002015-03-25T21:50:02.608+00:00R, exactly.
It's not true until they deny it,...R, exactly.<br /><br />It's not true until they deny it, therefore both major parties have the clear intention to hike either or both of the worst taxes. Bugger.<br /><br />To paraphrase, if the "Labour Party" want to tax labour, wouldn't the "Land Party" want to tax land?Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-9117892430582238372015-03-25T20:50:09.798+00:002015-03-25T20:50:09.798+00:00http://www.bbc.co.uk/news/uk-politics-32047995
Yea...http://www.bbc.co.uk/news/uk-politics-32047995<br />Yeah right.<br />Why don't they cut them back to the levels in 2009?Randomhttps://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-57811826571074186192015-03-25T20:40:56.761+00:002015-03-25T20:40:56.761+00:00JM: "after a few years is that the Banks just...JM: <i>"after a few years is that the Banks just start pricing it in as a cost, and who gets to pay for that?"</i><br /><br />Nobody! <br /><br />Because the effect will be primarily to choke off high risk, low margin lending to land speculators (which is a negative sum game). The real economy will do better for it.<br /><br />That's like asking <i>"Who pays the fines for breaking the speed limit?"</i><br /><br />Answer: the people who break the speed limit. If you don't want to pay it, don't break the speed limit. If everybody stuck to the speed limit, then nobody pays it.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-83951351458233549472015-03-25T18:53:05.965+00:002015-03-25T18:53:05.965+00:00> John M
Well that would be the same as an in...> John M<br /><br /> Well that would be the same as an increase in mortgage interst rates, and the BoE infulences them anyway.Dinerohttps://www.blogger.com/profile/14632385731642361211noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-87241885986169767292015-03-25T18:51:00.420+00:002015-03-25T18:51:00.420+00:00> Mark
I'm not falling into any trap , I a...> Mark<br /><br />I'm not falling into any trap , I agree with you the guys assertion that the levy reduces Lending provision is incorrect.<br /><br /><br />>Random<br /><br />I read that bullitin last easter, very informative.<br />The text book money multiplier is wrong.<br /> <br /><br />However bank regulatory capital is not the same as company book value capital.<br /><br />That is assets minus liabilaties , balance sheet capital.<br /><br />But regualtory capital is not calculated that way, from Basel 3.<br /><br />http://www.bis.org/publ/bcbs189.htm<br /> <br />The terminolgy and approach used in that Basel document is quite perculiar and takes some getting your head around. <br />Dinerohttps://www.blogger.com/profile/14632385731642361211noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-18388072100906155192015-03-25T18:46:44.979+00:002015-03-25T18:46:44.979+00:00ALl very clever, but of course what happens after ...ALl very clever, but of course what happens after a few years is that the Banks just start pricing it in as a cost, and who gets to pay for that?<br /><br />Then it stops being a tax on b&stard bankers and just becomes another direct tax on people and businesses...John Mhttps://www.blogger.com/profile/07437765041360086205noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-28750797700810642512015-03-25T18:27:03.553+00:002015-03-25T18:27:03.553+00:00L, OTOH, M, agreed.
DBC, bank asset tax is nation...L, OTOH, M, agreed.<br /><br />DBC, bank asset tax is nationalisation but without assuming liabilities - win, win.<br /><br />D, thanks.<br /><br />R, depends which textbook you read. The proper text books make it clear that by and large, loans create deposits.<br /><br />Money is not a thing in itself, it is a unit of measurement, and what it measures is indebtedness. So one man cannot have money unless somebody else has debts. Add all the monetary assets and liabilities in the world together and the sum total is precisely f- all.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-70325945026426097702015-03-25T18:24:16.144+00:002015-03-25T18:24:16.144+00:00Din, I refer you to the actual post:
"It'...Din, I refer you to the actual post:<br /><br /><i>"It's still only a paltry 0.21% though, which barely nibbles into banks' overall lending margin of 2% (i.e. mortgage interest average 3%, deposit interest average 1%, or whatever)."</i><br /><br />So actually, this is much the same as increasing corporation tax for banks from 20% to 30%, which is a lot lower than it is in many countries and no higher than it was in the UK until a few years ago.<br /><br />Apart from that, you appear to be falling into the Bankster-Home-Owner-Ist trap of referring to things which aren't capital as capital; misdescribing taxes on monopoly rights or monopoly income as "taxes on capital" and then making the leap that somehow taxes on income are fair game but not taxes on faux capital.<br /><br />B, no, he should keep nudging up the bank asset tax, it's like LVT for bank privileges.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-43438485453129839162015-03-25T18:21:19.661+00:002015-03-25T18:21:19.661+00:00B, nobody should pay VAT
Dinero, not if they have ...B, nobody should pay VAT<br />Dinero, not if they have not changed their tune lately:<br />http://www.bankofengland.co.uk/publications/Pages/quarterlybulletin/2014/qb14q1.aspx<br />Though I admit money creation is confusing to me. Is the textbook version bullshit or not, Mark?Randomhttps://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-77123258334282525282015-03-25T18:17:21.368+00:002015-03-25T18:17:21.368+00:00"banks should not pay any tax at all"
A..."banks should not pay any tax at all"<br /><br />Ah, now you're talking a language that the banksters can understand. <br /><br />Osborne should make the bastards pay VAT.Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-43088492552011386402015-03-25T17:33:17.826+00:002015-03-25T17:33:17.826+00:00Yes
I do agree with you the analysts quote is no...Yes <br /><br />I do agree with you the analysts quote is nonsense.<br /><br />He has no evidence that the tax would be from money that was destined to be regulatory capital and if it was then if a bank is profitable then the bank can sell more shares.Dinerohttps://www.blogger.com/profile/14632385731642361211noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-23798156491860679512015-03-25T17:01:27.806+00:002015-03-25T17:01:27.806+00:00the risk to shareholders is higher than that of de...the risk to shareholders is higher than that of depositors because shareholer capital is used to replace lost assets and protects the ability for the bank to honour depositors.Dinerohttps://www.blogger.com/profile/14632385731642361211noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-47133852062699213842015-03-25T16:30:07.905+00:002015-03-25T16:30:07.905+00:00> Mark
People would not want to convert their...> Mark<br /><br /> People would not want to convert their deposits to share capital and so that is not a route by which the retained earnings that are transfered to the HM treasury's custody by the levy could be replaced.<br /><br /> So the amount of assets allowed to be held in line the capital adequacy regulation is reduced by the bank levy.Dinerohttps://www.blogger.com/profile/14632385731642361211noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-12536103149565520612015-03-25T16:05:40.295+00:002015-03-25T16:05:40.295+00:00Agreed. The bank levy is a good thing and it shoul...Agreed. The bank levy is a good thing and it should be bigger so that more harmful taxes can be reduced or eliminated.Derekhttps://www.blogger.com/profile/06296053477905542366noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-10596124077044851732015-03-25T15:58:47.115+00:002015-03-25T15:58:47.115+00:00" If they want people to put the money back i..." If they want people to put the money back in as share capital rather than deposits, they will just reduce interest on deposits and increase dividends on shares."<br /><br />That would only work if people were happy to convert their no risk deposit at the bank to an at risk capital at the bank.<br /><br />That would satisfy capital adequacy , but its not very likely to happen.<br /><br />Dinerohttps://www.blogger.com/profile/14632385731642361211noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-65882126430939823012015-03-25T14:41:17.413+00:002015-03-25T14:41:17.413+00:00> Mark
and so the statement
"
If ...> Mark<br /><br /> <br /><br /><br />and so the statement<br /><br />" <br />If that £3.7bn was capital that banks levered up into lending, that is easily £75bn of lending that could have been provided to the economy,"<br /><br />is broadly correct.<br /><br /> <br />Capital adequacy requirement is to be 10% <br /><br />Mortgages have a risk weighting of 1/2<br /><br />3.7 bn times 10 = 37<br /><br />37 times 2 = £74 Bn<br /><br /><br />the £3.7 Billion goes from retained earnings , bank capital and so is no longer available for the capital adequacy criteria.Dinerohttps://www.blogger.com/profile/14632385731642361211noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-34211371229835088762015-03-25T14:38:30.147+00:002015-03-25T14:38:30.147+00:00Nationalise the Banks .Why should they create mone...Nationalise the Banks .Why should they create money and not the State? Also "How can Banks lose money when they can create it?" =Takes a lot of training .DBC Reedhttps://www.blogger.com/profile/17891849727783879145noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-66237712270383835942015-03-25T13:24:20.774+00:002015-03-25T13:24:20.774+00:00I think the only thing wrong with it that it shoul...I think the only thing wrong with it that it should be on local banks local wholesale balance sheet. It might be all talk and no pork but maybe one of the big banks will domicile elsewhere. But then again, is that a bad thing?mombershttps://www.blogger.com/profile/09650866436764567516noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-44412817187257685542015-03-25T13:09:30.813+00:002015-03-25T13:09:30.813+00:00Lola > agreed, a bit like an LVT,a property ta...Lola > agreed, a bit like an LVT,a property tax.<br /><br /><br />Mark <br /><br /> Bank capital is paid in capital. Its not derived from lending. See the document. Basel III capital<br /><br />http://www.bis.org/bcbs/basel3.htm<br /><br /><br />Definition of tier1 and tier2 capital.<br />You'll be suprised at what it is in that document. Give it a read. It doesn't say what you expect. The language is arcane. I wonder what you make of it. Give it a comment here if you have the time.Dinerohttps://www.blogger.com/profile/14632385731642361211noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-89294293148839349782015-03-25T12:50:33.934+00:002015-03-25T12:50:33.934+00:00Well, is it not just clawing back some of the subs...Well, is it not just clawing back some of the subsidy given underwriting the riskiest 15% under his Help to Buy: Equity loan scheme? He pumps up the pyramid scheme a bit more with wheezes like that and turning new pensioners into BTL landlords, pulls in the Stamp Duty and this bank levy, and kicks the problems into the long grass.ontheotherhandhttps://www.blogger.com/profile/15679900095175729353noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-43818391073484447322015-03-25T10:58:47.545+00:002015-03-25T10:58:47.545+00:00And, as 80% (I think) od bank lending is secured o...And, as 80% (I think) od bank lending is secured on land, it's really LVT by one remove. A 'mansion' tax.Lolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.com