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DaveyDave

The Northern Rock Situation

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Perhaps some of you gurus can help me with these questions:

1). What is the difference between the emergency loan given to NR and the loan given Barclays a few weeks back?.

2). Do you think that any of the sheeple who are frantically trying to extract their savings from NR banches know that their money is guaranteed up to 30k?.

3). Do you think that Alastiar Darling dies:

i). his eyebrows?,

ii). his hair?,

iii). his eyebrows and his hair?,

iv). non of the above?.

4). And another question: The NR say they can't borrow from the other banks but surely this is not true. Surely the other banks would loan if the interest rate was high enough?.

Edited by DaveyDave

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Perhaps some of you gurus can help me with these questions:

1). What is the difference between the emergency loan given to NR and the loan given Barclays a few weeks back?.

2). Do you think that any of the sheeple who are frantically trying to extract their savings from NR banches know that their money is guaranteed up to 30k?.

3). Do you think that Alastiar Darling dies:

i). his eyebrows?,

ii). his hair?,

iii). his eyebrows and his hair?,

iv). non of the above?.

4). And another question: The NR say they can't borrow from the other banks but surely this is not true. Surely the other banks would loan if the interest rate was high enough?.

Answer 1: Verty little!

2: Probably not but after all they are misguided sheeple reacting to panic!

3: His hair is natural, his pigmentation of his eyebrows is stable, for the moment, he's premature grey!

4: The other banks are scared shitless at the moment, things will improve in the next few weeks, watch and see!

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Guest Shedfish
2: Probably not but after all they are misguided sheeple reacting to panic!

i don't know that they are - your typical 'sheeple' might think something like 'the government would never let it happen', and trust in the powers, even though the maximum claim is 31k, and that's not guaranteed. no, this government doesn't give a sh!t about johnny saver with his zero velocity money.

if i'd had any sizeable sum of money with NR, i would have got my sleeping bag and drove to my nearest branch as soon as i heard the news. (i don't mean i'd drive my sleeping bag there,i have a perfectly good car for that.) i guess that makes me a 'sheeple' too, wanting to keep money i'd earned, rather than it disappearing in some golden handshake at boardroom level when the big cheeses all disappear into the ether.

you seem to spend a lot of time defending Northern Rock - in fact i don't recall a post of yours about anything else.. strange, that

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i don't know that they are - your typical 'sheeple' might think something like 'the government would never let it happen', and trust in the powers, even though the maximum claim is 31k, and that's not guaranteed. no, this government doesn't give a sh!t about johnny saver with his zero velocity money.

if i'd had any sizeable sum of money with NR, i would have got my sleeping bag and drove to my nearest branch as soon as i heard the news. (i don't mean i'd drive my sleeping bag there,i have a perfectly good car for that.) i guess that makes me a 'sheeple' too, wanting to keep money i'd earned, rather than it disappearing in some golden handshake at boardroom level when the big cheeses all disappear into the ether.

you seem to spend a lot of time defending Northern Rock - in fact i don't recall a post of yours about anything else.. strange, that

I only joined the other day and it's my first attempt at posting (off to look at the subjexts other than NR now), check it out yourself, I'm a newbie here, so forgive my inexperience!

Nice thought that, driving a sleeping bag :lol:

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NR are doomed and are going to go under or get taken over within weeks. End of.

http://www.bloomberg.com/apps/news?pid=206...&refer=home

Northern Rock Short-Sellers Benefit as Stock Plunges (Update1)

By Alexis Xydias

Sept. 14 (Bloomberg) -- Northern Rock Plc, the most borrowed stock in the U.K.'s FTSE 100 Index, made short-sellers richer today after becoming the first major U.K. bank to be bailed out in more than 30 years.

----

How do you make money when they actually go bust?

Edited by gruffydd

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Answer 1: Verty little!

Hmmm. I think there's a big difference between an overnight loan and a life-support machine. You can read the detail of what happened here:

http://www.ft.com/cms/s/0/a45a4f44-62ff-11...00779fd2ac.html

discussions intensified through the day between the Bank, the FSA and the Treasury. In the afternoon, the FSA judged the lender solvent, and the Bank – concerned about confidence in the system – argued that if Northern Rock failed, a widespread bank run would loom.

With this advice, Alistair Darling, the chancellor, took the decision on Thursday evening to authorise a lending facility. Since the Bank was in effect taking mortgages on to its books – a risky move for the public purse – it needed the agreement of its Court of Directors, which called an emergency meeting to thrash out terms, ending late at night.

By now, the rescue was public knowledge, but the legal documents were finalised only at 3am.

Now, the pressure to find a buyer is likely to increase, especially as savers have exacerbated the crisis by seeking to withdraw their cash. “It’s got to be sold quickly,” one investment banker said on Friday. “Otherwise it’s mayhem.”

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Guest Shedfish
I only joined the other day and it's my first attempt at posting (off to look at the subjexts other than NR now), check it out yourself, I'm a newbie here, so forgive my inexperience!

Nice thought that, driving a sleeping bag :lol:

yep, sorry .. got my tin foilhat on again

the sleeping bag's a VanGo :rolleyes:

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Perhaps some of you gurus can help me with these questions:

1). What is the difference between the emergency loan given to NR and the loan given Barclays a few weeks back?.

2). Do you think that any of the sheeple who are frantically trying to extract their savings from NR banches know that their money is guaranteed up to 30k?.

3). Do you think that Alastiar Darling dies:

i). his eyebrows?,

ii). his hair?,

iii). his eyebrows and his hair?,

iv). non of the above?.

4). And another question: The NR say they can't borrow from the other banks but surely this is not true. Surely the other banks would loan if the interest rate was high enough?.

These folks are savers withdrawing funds....same as most guys on this site, who state the sheeple effect are to do with mortgagee,s not savers.

If this is the case then its a site of woolly backs on ere.

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Perhaps some of you gurus can help me with these questions:

1). What is the difference between the emergency loan given to NR and the loan given Barclays a few weeks back?.

2). Do you think that any of the sheeple who are frantically trying to extract their savings from NR banches know that their money is guaranteed up to 30k?.

3). Do you think that Alastiar Darling dies:

i). his eyebrows?,

ii). his hair?,

iii). his eyebrows and his hair?,

iv). non of the above?.

4). And another question: The NR say they can't borrow from the other banks but surely this is not true. Surely the other banks would loan if the interest rate was high enough?.

perhaps they can help you the Hedge Fund Gurus...you will be safe in their profesional hands.

http://www.ft.com/cms/s/0/0e7a9070-62ea-11...00779fd2ac.html

Oh, look they doing bad, bad things to NR or maybe is none of the above.

Edited by alabala

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2). Do you think that any of the sheeple who are frantically trying to extract their savings from NR banches know that their money is guaranteed up to 30k?.

Well it's not. 100% is guaranteed up to £2000, the next £33,000 up to 90%. And even after that you've got to wait for the form to be accepted and then you'll get your money (without interest). It's perfectly rational to take out your money if you think there's a decent chance of the bank going under. It's even more rational for those with more than £35,000.

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The other questions have been answered adequately but as for number 4)

.

NR can borrow enough from the other banks but as you will read across the board the

interbank lending rates have been rising.

This means NR can't make a profit on the difference between what they lend at to their mortgage

customers and what they borrow from the other banks. So they have to get a cheapie loan from

the BOE.

.

In normal circumstances a lender would just push up the rate they charge the mortgage customers

but NR is primarily a sub-prime lender (by that i include any loan over 3.5X salary) they know their

customers would massively default, many of them being on a financial knife edge.

.

So beg the BOE for cheap money or loose all your value and hope of a buy out.

.

Between a Northern Rock and a hard place? :lol:

.

ST

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These folks are savers withdrawing funds....same as most guys on this site, who state the sheeple effect are to do with mortgagee,s not savers.

If this is the case then its a site of woolly backs on ere.

spot on. the people taking their money out didnt create this mess but they could end up paying for it and they are right to take their money out.

the sheeple are those that took out 125 % mortgages becauses prices only ever go up.

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