Sunday, Jun 29, 2008
The Buy-Toilet problems deepen
ThisIsMoney: B&B bosses may pay price for 'stitch-up'
One source close to TPG warned that without the funding to be raised from the current scheme, B&B could face a Northern Rock-style crisis, with panicked savers queuing to withdraw their cash.
Posted by confused76 @ 10:11 AM (710 views) Add Comment
4 Comments
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1. paul said...
It looks like the B&B bosses have become so used to the good life that they feel much too proud to concede control. They will pay for that pride.
2. mark wadsworth said...
I don't get it. Even the most well most and solvent bank in the world couldn't afford to pay out all its depsitors in cash. There's only enough notes and coins floating around to pay one per cent of bank deposits.
3. drewster said...
Mark Wadsworth, there's a difference between Liquidity and Solvency. It's explained very neatly in this NY Times article: After the Money’s Gone
Once you read that you begin to understand the nature of the problem facing the central banks.
4. paul said...
The current crisis is one of solvency, not liquidity - this was understood here on hpc before the bankers themselves understood it.
This is why the £50bn thrown at the problem by the BoE has done absolutely nothing.
I'm posting this picture again because I like it - it sums up everything that has gone wrong: