Friday, Sep 14, 2007
Will they go under or is this a buying opportunity?
BBC News: Northern Rock shares plunge 24%
Shares in one of the UK's largest mortgage lenders, Northern Rock, have fallen by 24% after the Bank of England decided to offer it emergency funding.
But experts say it does not mean Northern Rock, which has £113bn in assets, is in danger of going bust.
Posted by Webmaster @ 09:42 AM (459 views) Add Comment
6 Comments
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1. Scott said...
They bail out Barclays, they bail out Northern Rock. More non-tax-paying immigrants entering the UK claiming benefits and putting immense pressure on public services, the country is 1.3 billion pounds in debt and rising (bankrupt). This can only end one way.
2. Mark said...
are these assets debt?
3. Davidr said...
Northern Rock "is unlikely to go bust"
It depends what you mean by bust. If it was any other business the receivers would already be in. Sure the "assets" (houses upon which they have lent money) will appear to cover the liabilities to those they currently owe money to. But what are those assets really worth, and how accessible are they? Plenty of good businesses in the past have been declared unviable and had the plug pulled on them, by banks simply because they were experiencing a cash flow problem. But for them different rules apply. I don't expect Northern Rock to remain independent after the end of next week. If you are a shareholder it will to all intents and purposes have gone bust however the BBC describes it.
4. Scott Cobley said...
this will be a good time to buy shares in Northern Rock... maintain the shares you currently have
5. dugmug said...
Scott...it's worse than that, tis £1.3 TRILLION of consumer debt in the UK, and that figure is even a little old now!
6. denzil said...
Question was "is this a good time to buy?"
I'm not going to but I would seriously not completely ignore this as a buying opportunity.