Monday, October 26, 2009

UK Bankers Choose Mortgage Offers from Northern Rock

UK Bankers Choose Mortgage Offers from Northern Rock

As we have reported earlier, the past fortnight was marked by a number of significant cuts in the interest rates on mortgage deals offered by state-owned Northern Rock. The results of the cuts are now evident: many bankers from London chose Northern Rock as prime lender not only because of the decreased interest rates, but also because of other attractive loan terms.

Posted by uch1405 @ 06:41 AM (1180 views)
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7 thoughts on “UK Bankers Choose Mortgage Offers from Northern Rock

  • fallingbuzzard says:

    They choose Northern Rock, Lloyds or HBOS because state-owned banks are not going to find it easy to repossess on any new lending that they make.

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  • Good socialist policy……state subsidised cheap loans for rich bankers (whose 7 figure incomes are also financed by taxpayers). So this is the “help for hardworking families” that Gordon Brown is advocating.

    I expect to see a lot of strikes in the next 6 months.

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  • So let’s get this straight.

    The bankers borrow money from the government at 0% through quantitative easing, to buy government bonds that yield 3% making shedloads of money in the process and then they borrow from the government through Northern Rock to buy property.

    Does this sound to anyone else like state-sponsored carousel fraud to prop up the overpriced property market at the taxpayers’ expense?

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  • Feeding frenzy.

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  • 1. fallingbuzzard

    It seems that my mock social housing rent back theory is gathering pace.

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  • Roberto Birquet says:

    The flippant and liberal use of the word “socialist” by commentators such as Ingermany is inflammatory nonsense. If you ever want a lesson in what socialism is, I can give you some of the more salient points of Marx’s Capital; if you don’t, then could you refrain from your ignorant use of it.

    Excuse me if I am ruffling the feathers of received wisdom of the rightwing rant bloggers, but what we are seeing is a state bailout of failed capitalist policy. The first, Marx would have screamed blue murder about; the latter he would have arrogantly/confidently (whichever you prefer) have expected and accepted as a matter of course.

    One of the great features of the economic crisis is in fact (barely mentioned here or in the mainstream press or politics) that the problem is far greater than failed and greedy bankers, but systemic. The economics profession has started to wake up to this. That profession of lazy, confident lemmings which is more guilty of the current crisis than any government. Had we not had Brownm the past few years, we would have had the same problems with the banks thta we currently have. There was no difference in political parties’ policies, Lab, Lib or Tory.

    Pure capitalism would look at the offerings of Schumpeter, – see “creative destruction”, and communists – not to be confused with Stalinists who thwarted Marxism, even mass murdering the whole Bolshevik leadership, and the Communist leaderships of Prague and Budapest – at the reading of Capital; and I suppose Social Democrats, or big government capitalits at the work of Keynes. Keynes believed that animal spirits would thwart the functioning of the market (see the eurphoria and fear that helped house prices climb so high). He believed in radical fiscal policy and deficit financing to be repaid in eras of growth, but did not believe in re-creating bubbles. His whole ethos was about subverting the creation of them.

    But which of the Parties is being honest? To a degree, the Tories and it seems Schumpeter; but Brown’s Labour is seeking short-term results, looking for a boost to asset prices in time for the election. Even if some of their policies, and i do believe this, have improved since the crisis blew up, they seem unable to look beyond next week’s Daily Mail blurb. I rather think had Brown called the 2007 election and probably won with a small majority, we would see honesty from him; be that Schumpter or Keynes. As it is, we have desperado short-term economics with an election looming.

    Break up the banks, raise cap thresholds, and if any leave for Switzerland, pass on the debts to that country. Simples! But no bleating about Bankers fat wallets equalling socialism. That is just daft, and does not add to any debate. It’s yawn yawn blogosphere ignorance.

    And yes, this is state-sponsored carousel fraud to prop up the overpriced property market at the taxpayers’ expense. And the over-paid bankers at our expense, too. And why? Because the Daily Mail screams for rising house prices, and the Great Leader must do its bidding whatever the cost. Scandalous.

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  • Roberto Birquet,

    I am pretty sure Ingermany was being sarcastic.

    I don’t agree with your proposed solution being simple. I think the treasury are hooked on the revenue from the financial services industry since they know there is little to fall back on immediately ( yes they can legislate to encourage a migration to other sectors ), and they ( and any who are to follow them next year ) will be fully aware of this too.

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