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refusnik

Northern Rock Situation - Total Ignorance Of Commons

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I had a few conversations in the office today regarding Northern Rock affair and their rescue by BoE.

Everyone I have talked to were under the opinion that BoE came to provide emergency funding to secure and facilitate the handling of NR's savers money after the run on NR has started. They seem to have taken the events backwards and fail to realise that BoE was saving NR's business model and that caused the stampede.

How tricky the human mind is sometimes! People see what they want to see, not what is in front of them. When I say that BoE is backing up the faltering business, not saver's money I get a blank look. Amazing!

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I had a few conversations in the office today regarding Northern Rock affair and their rescue by BoE.

Everyone I have talked to were under the opinion that BoE came to provide emergency funding to secure and facilitate the handling of NR's savers money after the run on NR has started. They seem to have taken the events backwards and fail to realise that BoE was saving NR's business model and that caused the stampede.

How tricky the human mind is sometimes! People see what they want to see, not what is in front of them. When I say that BoE is backing up the faltering business, not saver's money I get a blank look. Amazing!

Well yeah, if they didn't, fractional reserve banking wouldn't work in the first place. What goes around.....

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Guest DissipatedYouthIsValuable
Pity they didn't do the same for Railtrack shareholders.

:(

Railtrack shares were only meant for the severely mentally impaired in the first place.

Edited by DissipatedYouthIsValuable

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there is a poll on the bbc webpage covering the run on NR

its asks "Are people right to take their money out from Northern Rock?" surprisingly it currently has over 56% saying "No"

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there is a poll on the bbc webpage covering the run on NR

its asks "Are people right to take their money out from Northern Rock?" surprisingly it currently has over 56% saying "No"

My guess is that not many of the 56% have deposits with NR. Let's see some of them put their money where their mouths are :lol:

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there is a poll on the bbc webpage covering the run on NR

its asks "Are people right to take their money out from Northern Rock?" surprisingly it currently has over 56% saying "No"

Wait till the rest of the country get back home from the high street queues :)

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If all the clearing banks are not lending money to each other any more then it raises the possiblity that other larger banks could also ask the Bank of England for money and create a similar run on other major high street Banks! Certainly the practices of mortgage lenders such as Northern Rock who have simply allowed the UK property market to be bidded ever higher on credit alone have alot to answer for! I suppose you just have to be philosophical and ponder that if there was no debt there would be no money :blink:

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If all the clearing banks are not lending money to each other any more then it raises the possiblity that other larger banks could also ask the Bank of England for money and create a similar run on other major high street Banks! Certainly the practices of mortgage lenders such as Northern Rock who have simply allowed the UK property market to be bidded ever higher on credit alone have alot to answer for! I suppose you just have to be philosophical and ponder that if there was no debt there would be no money :blink:

I suspect that if any other bank needs a bailout from the BOE that it'll be very much under wraps after fiasco we've seen so far.

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