Wednesday, September 19, 2007

Can’t keep sweeping dirt under the carpet forever

Northern Rock bail-out may breach EU laws

A spokesman for Neelie Kroes, the competition commissioner, said the ban on government subsidies to banks could be waived in exceptional circumstances of "systemic risk", but not on a long-term basis. "We're monitoring the situation," he said.

Posted by sovietuk @ 10:06 AM (732 views)
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6 thoughts on “Can’t keep sweeping dirt under the carpet forever

  • Are the central banks not propping up the system anyway by injecting large chunks of money to aid liquidity?

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  • Neelie is also finding out that other European banks are in a tight corner too.

    Business deals are coming to a grinding halt and Commerzbank in Germany has had its fingers burned with sub-prime loans that have gone bad only this week. Academic research by those without Vested Interest indicates we are only 25% of the way through this sub-prime mess.

    Expect the credit crunch to be around for some time.

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  • Banking clients are not share holders. They are offered the lowest rate of interest in exchange for absolute security. They should be supported by government. If they fall short, what will all the rest of us do? Remove our funds from the banking system and invest in gold.

    On the other hand an example must be made, or the banks will take advantage of government and the public and continue their risky behavior. Northern rock should cease to exist. Its employees should be marked by this and go on to become janitors. Its shareholders, beggars in the street.

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  • There is NO DOUBT it breaches some kind of law.

    The law of sanity. It was the strangest thing you ever did see. Thus far…..

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  • Academic research by those without Vested Interest indicates we are only 25% of the way through this sub-prime mess.

    Who would that be then??? Got a reference link?/

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  • If I was gordo – which thank god I am not – I would happily say that the government will guarantee NR funds in the full knowledge that the government will not be allowed to do so.

    Do something to keep the punters calm – the hollower the better

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