John McDonnell, who attempted to run for the Labour leadership, and thus the Prime Ministership, writing about the SIV structures in Northern Rock really fills you with confidence from line one.
I think that I was the first MP to call for the nationalisation of Northern Rock, although that is hardly surprising because I have been calling for the nationalisation of the financial sector for 30 years or more.
Terrific. During that 30 years or more, McDonnell has obviously not been keeping up with his reading - as he believes that Granite, a Structured Investment Vehicle (SIV), is both under Northern Rock's control, and has taken on the most solid mortgages as a tax dodge. I'm no banker, though I have worked on financial products, but it's pretty obvious to the meanest intellect that Granite bought the mortgages from Northern Rock in return for cash, which it raised by issuing bonds. The income stream from the mortgages then goes to paying the bondholders. It's a method of transferring constant income into a capital sum - realising the asset value of the mortgages.
I'm sure I've fudged the details - but then I'm not an MP calling for the legalised theft of an entire industry, so I don't really have to check my facts too carefully before publishing.
Labels: idiots, Media, politics