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This graph says the bubble is on its way back

There is such a thing as a free lunch, at least if you are a bank. Imagine this: I offer to lend you as much money as you like at 0.5 per cent interest and then I will immediately borrow it back at 4.5 per cent. Not a bad deal, eh? Just borrow £10mi from me and you pocket £400,000. Borrow £10bn, and you earn £400m. Now I am neither so flush nor so stupid…

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