Tuesday, Sep 18, 2007
We feel reassured by the government, but...
Mail: Northern Rock: Who's next?
Three major lenders are being seen as particularly vulnerable following the Northern Rock disaster. Here they are profiled by Deputy City Editor Lucy Farndon. hmmm... I wonder how may more lenders can be bailed out by the Government. Clouds are gathering on the Pound
Posted by confused76 @ 01:50 PM (1140 views) Add Comment
14 Comments
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1. whiteknight said...
and because Britain is not a closed system - when GBP falls significantly, will the prices of some things increase drastically and stay there?
and is this not inflation? (in the UK)
2. whiteknight said...
.. and hasnt it indeed benefited from the reverse effect for a number of years in a number of areas such as clothing?
clothing i view as essential because its bloody cold in the winter.
prices will not fall back because Britain is not the total sum of demand within the entire global system on these commodities and goods. However, it IS just about (if you discount people buying into London property) the sum total demand on its own property.
After all, who the hell else will want to live here?
3. wage slave said...
I wouldn't worry because when the pound falls the amount of clothing in the CPI basket of goods can be reduced because of global warming.
4. japanese uncle said...
Don't worry. Thanks to the well-publicized global warming, winter chill will no longer be a major concern. Also inflation will certainly prevail unless you shift the range of your purchase, ie, people will no longer be able to afford 100% silk neckties, so people must get back to the dear old 100% polyester ties. Giving up Bordeaux and back to Spanish plonk, etc, etc. Very simple.
5. su said...
JU. Spanish plonk? I can't afford that - Tesco value squash has to do, blackcurrant & apple flavour on posh occasions (it's near enough the same colour as red wine!)
6. whiteknight said...
Ha. Both of you are promoted to top jobs in the government PR department.
Report in on Monday pls.
7. su said...
You know times are hard when there's hardly any reduced-price food left in supermarkets in the evenings!
8. inbreda said...
Good point Su.
As an anecdotal indicator it would be quite a good index.
9. tyrellcorporation said...
Securitisation relative to market value:
NR 1725%
B&B 566%
HBOS 218%
A&L 84%
Barclays 58%
RBS 43%
Lloyds TSB 33%
HSBC 9%
Standard Chartered 9%
...This rescue (if it works) is pretty outrageous as they were clearly taking the p*ss!
10. p. doff said...
The whole NR debacle just goes to show that the banks have got the government by the nuts.
The system must be bailed out at all costs in order to keep the money merry-go-round turning. Liquidity and lending must continue in order to finance more debt and HPI, thus prolonging the (dented) feelgood factor and spending on the high street to finance Gordons fake miracle economy where all is well and boom & bust has been abolished.
Listening to Radio 2 earlier today nearly made me puke. They had wheeled out some 'names' who have today opened accounts at NR to prove that all is back to normal. Reminded me of politicians publicly feeding their kids on beefburgers to prove there was no such thing as CJD.
I do not have any money invested with NR, but speaking as sombody who has been robbed by Equitable Life, and whos Norwich Union endowment would not pay off the mortgage (if I still had one), then I completely understand the queues outside NR branches. The chancellor may have offered guarantees, but if the poo did hit the fan then it could be some time before money is returned (and the chancellor has yet to clarify the question of reimbursement of lost interest).
11. mrmickey said...
Under Nu Labour we've had the first bank run in 100 years in this country quiet an achievement well done Nu Labour. Yes I heard Bobby Robson was going to open an account with NR, wonder how much they paid him to say that, football managers/clubs have always been renowned for their fiscal prudence ask Leeds United.
12. tyrellcorporation said...
Talk is cheap, but in this case the extraordinary largesse of Darling & Friends could put a massive dent in the country's finances. It's crisis management from a governement that's run it's course and spent our children's money as well as ours.
13. enuii said...
Labour have been living off the back of workers mortgages for the last 10 years, quite ironic really for supposed socialists.
14. robh said...
I don't recall New Labour advertising themselves as Socialist in the run up to their taking office from the Conservatives or at any time since :)
They say that petty criminals learn from those they share a cell with, and New Labour learnt every trick in the book from their predecessors