Discussion in 'Current Affairs, News and Analysis' started by PartTimePongo, Aug 4, 2009.
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Deep deep joy.
You wonder why? http://constantlyfurious.blogspot.com/
Not too bad all things considered.....
Actually, Northern Rock didn't make a penny lossâ¦
We the taxpayers did.
quelle surprise, they were so over exposed to asset to risk ratio that it was a given on day one.
All hail Gordo; the sort of financial genius that cant even buy proper magic beans....
Yay we're all less rich, go us
Absolutely no suprise whatsoever. Brown had a quick panic, knee-jerk political reaction without any real due-dillegence or economic consideration as to what they were really buying into. There were no private sector buyers at the fantasy levels Labour wanted to offload NR for because they had a much better understanding of the risks involved. Once again the question has to be how on earth did this myth of Browns economic genius arise? He is an amatuer and once again the banking sector have played him for the fool he is. And yes, now the buyers will squeeze an even lower price for NR because the government is a very distressed seller that needs to offload it before the losses rack up further. It was a crap business that should have gone into recievership, not public ownership.
Good thing about the Eton/Harrow boys is at least they can make money - the current lot can only know how to spend it!
Which is of course the main point in favour of allowing MPs to have other jobs in the real world rather than being career politicians
Obviously there a people in genuine dire straits who can't pay their mortgages.
But what should have been forseen is that a lot of people pay their mortgages because they have to, that is: Dont pay and you lose your home, take away the santions that lenders can apply to defaulting payers and a whole load of people will not put themselves out to pay.
Why so surprised the Broon bailed out Northern Rock?
After all, NR used the same business model that Broon has used for the last 10 years, borrow money to give to people who can't afford things so they can buy things they can't afford.
NR borrowed money to lend to knobbbers who couldn't get mortgages from real banks and building societies becuase they were piss poor and had little chance of paying it backâ¦
Broon calls his system Tax Credits.
I think you misunderstand. If Northern Rock had gone bust and into receivership then its not the case that people woudnt have had to pay their morgages. The parts of the bank would have been sold to the best bidder likely via auction to other institutions based on what they were prepared to pay to take over those morgages for example. The homeowners would simply owe money to another bank, likely at the same terms until the terms needed adjusting. Not good for the shareholders but they didnt do so well anyway and they should have known better to own a slice of that company.
However instead Labour effectively took on all the liabilities and assets without really any idea what they were taking on and wrote a blank cheque as the cost of being able to say "we saved the banks". Anybody can save any bank or business if you throw enough money at it and are prepared to accept any loss. But making a business profitable is another matter entirely and the messiah picked a particularly shitty one. Northern Rock wasnt in temporary trouble that a quick lick of paint and a new shopfront was going to cure. It was showing signs of being a potential basketcase with a very risky and flawed business model that failed at the first sign of trouble. We would all be in a better place if they had failed. Unemployment is not going away anytime soon and more ARMs will come bad soon so I expect more losses before NR stands any chance of posting anything close good numbers (unless Labour puts its best spinners on the case...).
Yes, clearly I was in error in thinking that
referred to mortgage loans and more people failing to pay the instalments
Perhaps the whole Northern Rock bail out would be better explained by looking at who had money invested in it.
And then take a close look at those same Northern Rock investors and see who co-incedentally also happen to finance the Labour Party.
The draw your own conclusions about what the financial outcome would have been for Labour Party coffers had Northern Rock gone down the pan.
Allegedly, of course. I'm sure that non of the Unions or financial supporters of the Labour Party stood to loose a single penny from the demise of Northern Rock.
Undoubtedly Gordon Brown has done a marvellous job of bulldozering vast, collosal piles of our money into assorted bottomless pits never to be see again and clearly the "current period of economic uncertainty" has taken everyone completely by surprise and could never have been foreseen!
However... if that's the case I would like to know what the hell Gordon Brown (as Chancellor of the Exchequer) and his little Treasury chums were doing for the past 10 - 12 years? I have raised this point before (only half joking) in other threads!
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