Friday, September 19, 2008

A good day to bury more bad news then – Northern Rock has cost us £92bn and counting

Northern Rock expands state debt

"By the end of June this year, the government had loaned directly the Northern Rock £21bn. However, the liabilities taken on through the Rock's takeover have boosted the national debt by much more - pushing it up by £92bn last October. "

Posted by paul @ 11:28 PM (853 views)
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8 thoughts on “A good day to bury more bad news then – Northern Rock has cost us £92bn and counting

  • planning4acrash says:

    Replacing our Trident nuclear deterrent, £25bn, Cleaning up existing nuclear sites, 50-80bn, buying a reprobate bank that priced a generation from the housing market, £92bn and counting.

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  • little professor says:

    Chickenfeed. The planned US bailout will cost well over £500bn

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  • “Earlier this year the chancellor Alistair Darling predicted that he would have to borrow an extra £43bn this year.
    But so far, in the first five months of the financial year he has already borrowed £28.2bn, suggesting he may well exceed his target.”

    Two questions…

    1. Who is he borrowing from?
    2. For how long will they continue to lend?

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  • *sigh*

    1. Paul, P4AC. NR’s total outstanding mortgages were about £120 bn when it was nationalised. Ten or twenty per cent of these loans will go bad (the gummint is of course totally useless at running a bank and can’t evict people for political reasons). Ergo, total transfer of wealth from taxpayer to reckless borrowers and labour luvvies £24 billion, tops. That’s still a horrendous amount of money, but a fraction e.g. of public sector pensions liabilites which the gummint refuses to put on its books (approx £1,000 billion).

    2. Gardenia, they are ‘borrowing’ from future taxpayers. There is no fundamental difference between borrowing now to be repaid by future taxpayers (us) and taxing us more highly now. It is a massive great scam. We taxpayers will continue to lend ourselves money (minus large commission creamed off by LibLabConsensus) until we all f*** off abroad, the problem being that most other gummints are just as bad, plus I’m English and I rather like it here, despite everything.

    */sigh*

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  • “In August alone, net borrowing by the government rose by a record monthly sum of £10.4bn as it sought to finance its own spending. The figure was higher than expected because weak growth in tax revenues, due to the economic slowdown, had not kept pace with increased public spending”.

    Can we see this situation improving?

    When will we start to create proper jobs in this country where people make things that people want to buy?

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  • @5. alan asked…

    When will we start to create proper jobs in this country where people make things that people want to buy?

    When the UK becomes further impoverished by government debt, Sterling has been devalued and labour rates undercut those of Chinese workers – about 18 months.

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  • “(the gummint is of course totally useless at running a bank and can’t evict people for political reasons).”
    Are you suggesting that defaults aren’t being evicted ?

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  • last_days_of_disco says:

    NR is one of the most aggressive in repossessing I hear.

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