Tuesday, Sep 18, 2007
Another 4.4 billion pounds of tax payers money injected into the system.
Reuters: Bank delivers 4.4 billion pound emergency cash injection
The Bank of England pumped an emergency 4.4 billion pounds into money markets on Tuesday to bring overnight interest rates down after they had shot up in the wake of the crisis engulfing Northern Rock. Overnight rates hit 6.5 percent on Monday -- 75 basis points above the Bank's official rate -- on concern the troubles at Northern Rock
Posted by jj @ 01:04 PM (227 views) Add Comment
1 Comment
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1. Alan said...
In August, US defaults doubled. This is because sub-prime rates "step up" after a short peiod (sometimes called "teaser" loans). Typically this step up could be 6% to 13.25% on the TV programme I watched. This kind of jump triggers defaults, often the borrower is unaware of the timing of these sudden big jumps, and disaster follows.
Many US borrowers were mis-sold high interest sub-prime mortgages when they could have taken out lower rate mortgages. Cases are now in the US courts.
When they filter through the system we will have another Tsunami wave of debt defauts. Another credit freeze will kick in.. etc.