can we please note how useless the Tories are being in this current crisis?

[morningpaper]

They have NO IDEAS

Even the Telegraph reported Cameron as giving one of his worst performances in the commons

I am not so inclined but if I were a woman I think I would fancy a confident Gordon more than Dave. Gordon has really perked up and it suits him! [

'I am not so inclined but if I were a woman I think I would fancy a confident Gordon more than Dave.'

Put down the crack pipe already!

Gordon looks like a dribbling old hound, munching a leftover poke of chips or kebab that someone's chucked on a filthy Kirkcauldy pavement after a night out.

shows how much I know about women

Nah, ExP knows there are those of us on here who do fancy GB, she just finds it too traumatic to acknowledge it

Agree with the OP. Although I think the best thing the tories can do at this point is just keep out of the way. Seems as though the governmnent's scheme is a very good thing (assume this is more Mervyn King's creation than Gordon Brown's but even so.)

I keep reading that the huge market in credit default swaps could still blow up disastrously (especially according to the very brilliant Gillian Tett), and that this could be very bad news indeed, but I don't really understand the issues on this or how likely it is looking now. Does anyone know about this?

the CDO/CDS thing, essentially could result in large settlemnt/cash calls and trigger corporate defaults due to cash shortages. BUT Lehman and Freddie Mac and Fannie Mae CDS settlements were HUGE (last two weeks) and the market dealt with them. More later

As you probably know, credit default swaps (CDS) are in essence insurance type instruments on bonds/corporate debt. Payments are triggered when there is a credit event such as bankrupty, moratorium etc. So Lehamn Brothers, and the lending entities Freddie Mae and Frannie Mac triggered CDSs. NOW unlike shares, CDSs are bi-lateral contracts. Shares on the other hand are settled via a centralised bank/system which means cash movements are netted and kept to a minimum. CDSs on the other hand are settled bi-laterally so you end up with huge amounts of cash moving around. This bi-lateral settlement could end up resulting in party to CDS defaulting due to timing differences on cashflows. This could then trigger CDSs on related to the counterparty and so on.

One of the market reforms that is in the pipeline is that CDSs will be settled by centralised clearing house such as London Clearing House or something like that. That way only net cash payments are made and the possibility of the domino effect is minimised.

Didn't read FT today so not sure if that is what Gillian Tett was referring to

Hey; I am repeating my prediction that the Govt (public) will make a profit on the purchase of stakes in the banks. It is awesome that the British plan is widely being acknowledged as the most credible solution. Look how decisive we have been over here compared to the US. Atleast the US looks like copying us.