Northern Rock - Richard Branson

Discussion in 'Current Affairs, News and Analysis' started by ABrighter2006, Nov 26, 2007.

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  1. AlienFTM

    AlienFTM LE Book Reviewer

    I reckon Branson is making a shrewd, wise move.

    I think it will lead to a rebranding of Newcastle Untied shirts just in time for Christmas. It is the only time you'll ever see 50,000 Virgins and a wise man in Newcastle at Christmas.

    I was laughing at Newcastle as they were humiliated by Liverpool on Saturday. Didn't expect to get it back in No Trumps from Everton a couple of hours later.

    Bugger.
     
  2. Pretty much everything the guy touches turns golden.

    Good luck to him, as long as the money our government gave to bail NR out gets paid back, then lve no issues whatsoever.

    Wait until everything settles, l might MIGHT just invest in NR/Virgin.

    Could take time, but in 5 -10 years may prove too be a shrewd move me thinks
     
  3. AB2006 - VMT for your informative response. I'm still trying to make some sense out of all this and hope that it doesn't foreshadow further financial woes like the 'r' word. Having been raised with the ethos of living within my means (reinforced by the Services' dim view of anyone falling into debt), I am worried enough that my kids are starting life with the millstones of student loans around their necks. However, I find today's revelation that the average Brit owes £33k horrendous. Living on credit is a risky business at the best of time but when they start calling the loans in...

    Mind you, there is always this adage attributed to J Paul Getty:

    Or the Government's?
     
  4. MAD_FERRET
    He was lucky in the beginning. He released Mike Oldfield's 'Tubular Bells' and bought up the Sex Pistols.
    But that didn't take genius. He only picked up the fortunes that the dumb clucks couldn't see.

    To his credit he has managed to make a success of an air line business. Which is pretty incredible. The air line biz is the grave yard of many a competent entrepreneur. And he has a special gift. He knows how to source the right people and delegates well.
    (He is nothing if not the 'Delegater par Excellent'! That's why he keeps smiling, he leaves other brows to become furrowed.)

    But he wasn't as good as Mussolini on the train front. And he doesn't hold the key to a malaise besetting the world banking system.
    He's a successful player, but he didn't invent the game.
     
  5. Grownup_Rafbrat

    Grownup_Rafbrat LE Book Reviewer Good Egg (charities)

    Great benefit. Acquire at knock down price. Change name. Move equity to shady offshore tax haven with all the other Virgin businesses. Continue to smile and grin, wearing naff jumpers, whilst laughing all the way away from paying the tax man anything. But expecting him to keep those loans going so profit can be maximised.


    It would be enough for me to take my money out of Northern Rock. If I had any money, and if it were in Northern Rock.
     
  6. I'm beginning to wonder if Branson wasn't put up to it. Maybe he was visited by someone from the treasury and asked if he could help restore confidence and quieten the frigtened horses.
    He's into branding, the governments into presentation it would sort of make sence. I think his apparent interest in Northern Rock might be all show. Maybe its all just clever PR.

    (I did hear that the junior official who suggested that they hire Michael Winner to appear on telly to tell everyone to "Calm down dear, its only a commercial" has been given the sack.)
     
  7. Although the price is going up
     
  8. But on the basis of the takeover of a business that failed and collapsed in value during the the last quarter, we should be worried if the share price did anything else.

    Not exactly the .com boom, but compare Northern Rock to that of Last Minute.com and the problems that are had when "clever accounting / business" models are used and communications to the market are based on perception versus reality.

    Were it not for the suspension of Northern Rock's shares on the market, the price would have declined to such an extent as to leave the regulators with little choice but to close the books. In essence, the usual conditions existed, that made Northern Rock's fortunes (or rather lost them), so the share price fluctuation is nothing more than indicative of the price moving nearer to that of the value of the business now - and if Branson invested in any FTSE 500 company, market optimism would push the organisation's share price up.

    So, great news for those looking to dump their shares, but for all of today's gains, compare the trading price to 365 days ago, and now make your prediction for the same period going forward. Then decide, whether it would be in the interest of those organisations, such as Pension Funds, to be investing in shares on this share price movement, for any other reason than the government's effective underwriting of any losses for Northern Rock operations until the point where all public monies have been repaid, along with a commercial rate of charge, to HM Treasury.

    Totally agree with the words of Getty. Maybe the problem is centred around this quaint economic model of buying real estate as an investment.
     
  9. Its called a dead cat bounce.
     
  10. Dead cat bounce?

    is this the new virgin shares then?
     

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  11. Ah, hear the shareholders have rebuked Branson's generous offer. Fancy that!

    Any recent footage of our sweating Chancellor? Oh dear, oh me, oh my. Now the real fun is going to begin.
     
  12. As suspected, he is all mouth and wooly jumper.
     
  13. I suspect that The Treasury will pick the 'winner' of this auction.For the taxpayer it's not a matter of the best deal,but the least worse!
     
  14. roadster280

    The problems now occurring in the financial markets pre date labour. The seeds were sown in the Reagan/Thatcher period with their wholesale deregulation of the markets. These are the chickens coming home to roost.

    The blame lies with neo con economics and their hero Milton Friedman. Its not just war they get wrong. Its - well everything really.
     
    • Show again braincell Show again braincell x 1
  15. mysteron

    mysteron LE Book Reviewer

    The only reason why the shareholders said no is that they were frightened of the lawsuit that would come from trade descriptions if Branson took over.

    They could hardly call it "Northern Virgin" could they? :LOL: :thumright:


    Edited: typing mong tuesday kicked in early.