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Boe Stepping In Has Robbed Us Of Victory

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We killed more of them than they did us and now the sheeple have seen that things are not all as they should be then our ranks have been swelled by several million.

The losse of confidence in city banks has been tranfured to the BoE so instead of our banks refusing to lend to each other it will change so that internotional banks or the IMF will refuse to lend our beloved BoE any more money without charging a premium rate.

They played a master stroke yesterday that was well planned in advance but they had the timing all wrong and when we saw the new secret weapon we didn not flinch.

we will fight them on the bea.............................................................................

... © W. Churchill

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This sort of reminds me of McArthur wanting to go all the way to Russia after taking Berlin.

Surely knocking the ar53 out of speculative borrowing on housing is the victory we seek. The rest will now pan out as expected, HPC with the unfortunate economic fall outs as expected. Bank system collapse is probably a bit strong for my water. (although l expect we havent seen the last of any of this)

Edited by DabHand

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We killed more of them than they did us and now the sheeple have seen that things are not all as they should be then our ranks have been swelled by several million.

The losse of confidence in city banks has been tranfured to the BoE so instead of our banks refusing to lend to each other it will change so that internotional banks or the IMF will refuse to lend our beloved BoE any more money without charging a premium rate.

They played a master stroke yesterday that was well planned in advance but they had the timing all wrong and when we saw the new secret weapon we didn not flinch.

we will fight them on the bea.............................................................................

... © W. Churchill

Nobody seriously thought that the government would allow NR to collapse did they? The aftershocks of that happening would have been unimaginable to all but Realist Bear.

Edited by margesimpson

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This sort of reminds me of McArthur wanting to go all the way to Russia after taking Berlin.

Surely knocking the ar53 out of speculative borrowing on housing is the victory we seek. The rest will now pan out as expected, HPC with the unfortunate economic fall outs as expected. Bank system collapse is probably a bit strong for my water. (although l expect we havent seen the last of any of this)

Agree with all you say.

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Who would have suffered the most if NR went down, irresponsible borrowers or prudent savers?

in all wars some people will be on death missions but just think what the other 20m savers would have done if just a few of their numbers were killed (lost saving money)

BoE independant my left nipple :lol:

the european union will not be happy with the BoE move as it's unfair competition when a goverment bails out a bank that should had been allowed to go down.

NR made the worlds news and that is bad propaganda for our goverment so overseas investors will want to take money out of the UK

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Nobody seriously thought that the government would allow NR to collapse did they?

Not like the Titanic or the Hindenburg, certainly; but all they've done is to bring the crippled ship under tow in order that it can be taken to the scrapyard without drowning the passengers and crew here and now. Assuming there is any significant sub-prime issue in the UK (which of course most of us on this site do), NR's loan book will be tainted. The credit crunch is here to stay, at least for the medium term, and NR's retail savings business is now clearly holed below the waterline. The brand is now a liability rather than an asset, however short the sheeple's memory is. Even if NR is just about solvent now (which, frankly, I doubt), as more and more sub-prime defaults happen and fixes reset to a higher rate, a proportion of their debts will start turning bad. With no new savings income and the only borrowing available being from the BoE at punitive rates, NR is surely finished. It's just a question of when and how.

Short of sinking hundreds of billions (which, thanks to existing public spending commitments, it doesn't have) into the banking system, there's nothing the government can do to stop ten years of irresponsible lending and interest rates kept artificially low from hitting the consumer economy hard. Precisely how hard is the only unknown, IMHO.

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Not like the Titanic or the Hindenburg, certainly; but all they've done is to bring the crippled ship under tow in order that it can be taken to the scrapyard without drowning the passengers and crew here and now

That's all they needed to do.

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Nobody seriously thought that the government would allow NR to collapse did they? The aftershocks of that happening would have been unimaginable to all but Realist Bear.

Northen Rock is to all intents a ruined bank. The government step in has transferred the riak of failure to the tax payer. Let's hope there is a takeover soon...

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I will be happy to have a few more defeats like this. The biggest irresponsible lender in the mortgage market taken out in a few days? The chances of reckless lending continuing in other institutions are pretty low too. Northern Rock may or may not survive, but it is out of action for the foreseeable future.

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I find it hillarious that people on this site say things like

"Those greedy BTL'ers"

"Those unscrupulous banks"

"Those selfish property developers"

But then, people like the OP and those in agreement, are willing to allow the economy of the whole country topple, just so they can afford to by a property for themslves. The hypocrisy beggers belief.

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I find it hillarious that people on this site say things like

"Those greedy BTL'ers"

"Those unscrupulous banks"

"Those selfish property developers"

But then, people like the OP and those in agreement, are willing to allow the economy of the whole country topple, just so they can afford to by a property for themslves. The hypocrisy beggers belief.

Doesn't it just ? Many of them really are wannabe BTLers annoyed that they missed the boat and bitter that it makes no financial sense to buy now . . .

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I find it hillarious that people on this site say things like

"Those greedy BTL'ers"

"Those unscrupulous banks"

"Those selfish property developers"

But then, people like the OP and those in agreement, are willing to allow the economy of the whole country topple, just so they can afford to by a property for themslves. The hypocrisy beggers belief.

Not really. Affordable would be affordable for all. I certainly dont intend to buy ALL of the affordable stock when it materialises.

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But then, people like the OP and those in agreement, are willing to allow the economy of the whole country topple, just so they can afford to by a property for themslves. The hypocrisy beggers belief.

Did anyone say they wanted the country to topple? I don't think so.

Affordable housing for all would be nice though ;)

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Guest anorthosite
But then, people like the OP and those in agreement, are willing to allow the economy of the whole country topple, just so they can afford to by a property for themslves. The hypocrisy beggers belief.

A lot of us want the debt-based economy with its overpriced housing, excessive tax and concealed inflation to fall, yes why not? We want to work hard, have a decent house, be able to eat and enjoy life. What's wrong with wanting that?

So we come here and vent a little frustration, so what?

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I find it hillarious that people on this site say things like

"Those greedy BTL'ers"

"Those unscrupulous banks"

"Those selfish property developers"

But then, people like the OP and those in agreement, are willing to allow the economy of the whole country topple, just so they can afford to by a property for themslves. The hypocrisy beggers belief.

An economy that doesn't allow someone to buy a property unless they mortgage their entire life perhaps ought to be toppled.

Though it seems to be doing a good job of toppling itself without any intervention.

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Did anyone say they wanted the country to topple? I don't think so.

Affordable housing for all would be nice though ;)

Why would someone want a company like Northern Rock to go bust and not be saved by the boe?

No reasonable person without a selfish motive would want that.

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An economy that doesn't allow someone to buy a property unless they mortgage their entire life perhaps ought to be toppled.

What gives you the right to say that?

I'd have more respect for people who would just admit that they are disgruntled because they didn't get on the property ladder in time.

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Why would someone want a company like Northern Rock to go bust and not be saved by the boe?

No reasonable person without a selfish motive would want that.

Bad companies need to go bust. If the government prevents that then you have central planning, not free-market capitalism.

The question of whether/how much retail depositors should suffer is a different one. My feeling is that the FSA scheme has shown itself to be inadequate to prevent a bank run (you'd be a fool to leave significantly more than 2k in a dodgy institution), but that fully underwriting deposits of 100s of thousands represents an unacceptable level of moral hazard.

Too many people have no clue about the FSA scheme or the limits to compensation, otherwise we wouldn't have sayings like 'as good as money in the bank'. In future, bank accounts should come with a clear notice of the scheme, something along the lines of 'investments may fall as well as rise' that you get with unit trusts. Informed depositors will manage the risk themselves, making for a more robust banking system -- and perhaps an environment where there's less public sympathy/pressure for bailing out people who should have known better.

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Guest portwinestain

Is it going to be business as usual? i.e. really bloody stupid lending practises. This crunch surely has changed all of that. The froth has well and truly been blown off the property cappucinno!

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Guest An Bearin Bui
I find it hillarious that people on this site say things like

"Those greedy BTL'ers"

"Those unscrupulous banks"

"Those selfish property developers"

But then, people like the OP and those in agreement, are willing to allow the economy of the whole country topple, just so they can afford to by a property for themslves. The hypocrisy beggers belief.

You REALLY just don't get it, do you? This is about the management of the economy and the future of the country. Bailing out a bank, and any similar banks, with a flawed business model that rode the wave of cheap credit at the peak of the market and is now whinging because it got its fingers burnt in the market is just blatant economic mismanagement. It is actually the government that is self-interested as they will happily undermine the value of the currency and future economic stability for the sake of another term in office and to avoid the PR embarassment of queues outside a bank.

The NR savers would have been able to get their money out in time if NR had it all on deposit and is really solvent as they claim. There was absolutely no need for the government to bail them out beyond the emergency loan from the BoE and certainly no need to guarantee the same underwriting to every other dodgy bank. That's just making up the rules as you go along with no thought for the future of the economy. You and every other taxpayer will pay for this either through inflation or increased taxes. There may be some people on here who are desperate to own a property and unhappy with the way things are but, property-owner or not, everyone has a right to be unhappy when they see the government bailing out speculators at their expense. Remember, the savers would always have been fine (if NR are solvent as they claim): it's the speculators and NR management that the government is bailing out.

Hold on, I'll just stop myself there - I'm arguing from the basis of economic policy whereas you clearly have no interest in anything except whether or not someone owns a house. I'm wasting my time...

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Guest An Bearin Bui
What gives you the right to say that?

I'd have more respect for people who would just admit that they are disgruntled because they didn't get on the property ladder in time.

And I'd have more respect for people if they showed even a basic understanding of economics, financial regulation, government policy and the relationship between housing and all of the above

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I find it hillarious that people on this site say things like

"Those greedy BTL'ers"

"Those unscrupulous banks"

"Those selfish property developers"

But then, people like the OP and those in agreement, are willing to allow the economy of the whole country topple, just so they can afford to by a property for themslves. The hypocrisy beggers belief.

I do not think people on this site want the economy to topple but are just pointing out the folly of the debt based economy centred around house price inflation. A boom is invariably followed by a bust in overpriced markets.

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You REALLY just don't get it, do you? This is about the management of the economy and the future of the country. Bailing out a bank, and any similar banks, with a flawed business model that rode the wave of cheap credit at the peak of the market and is now whinging because it got its fingers burnt in the market is just blatant economic mismanagement. It is actually the government that is self-interested as they will happily undermine the value of the currency and future economic stability for the sake of another term in office and to avoid the PR embarassment of queues outside a bank.

The NR savers would have been able to get their money out in time if NR had it all on deposit and is really solvent as they claim. There was absolutely no need for the government to bail them out beyond the emergency loan from the BoE and certainly no need to guarantee the same underwriting to every other dodgy bank. That's just making up the rules as you go along with no thought for the future of the economy. You and every other taxpayer will pay for this either through inflation or increased taxes. There may be some people on here who are desperate to own a property and unhappy with the way things are but, property-owner or not, everyone has a right to be unhappy when they see the government bailing out speculators at their expense. Remember, the savers would always have been fine (if NR are solvent as they claim): it's the speculators and NR management that the government is bailing out.

Hold on, I'll just stop myself there - I'm arguing from the basis of economic policy whereas you clearly have no interest in anything except whether or not someone owns a house. I'm wasting my time...

Well said!

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