The onerous UK bailout

This isn’t new but I guess hearing about the issue be discussed from a different part of the world, this time from the UK, ascertains the difficulty of dealing with the government.

From the WSJ:

The guarantees [meant to revive the asset-backed securities market] were made available in April, but since then, none of the major U.K. banks has issued a security with such a guarantee. Bankers say it is too expensive; the government says the program is under review. So far, no changes to its terms have been made, and the program is set to expire in October.

Read the entire news HERE.

I’m still waiting for the PPIP to start happening. I haven’t really heard any updates, except that it is beginning soon. The more important question becomes, how successful it will be? Many banks have already lost the need to sell their assets because the markets have (seemingly) recovered and the fear and stress level that used to be present are not gone. That leaves the banks yet again free for now, but also vulnerable to any market shakeouts. The only good news to that is, the crisis has abated and another meltdown would be some time from now for anyone to even worry about the possibility of these toxic assets creating a damage again.