Where's Gordon?™ 4
Benedict Brogan and Adam Boulton shout the traditional cry which goes out when trouble is about - "Where's Gordon?™". Guido suspects Gordon will stay hiding behind the sofa if there are still queues outside branches of the Northern Rock or the Alliance & Leicester this morning. If there are no queues he'll show his "courage".The open ended government guarantee promise is unprecedented. It could prove to be insane. If the housing market drops dramatically, mortgage repossessions could become even more endemic than they already are, with the result that the government could be left losing tens of billions of taxpayers funds. Bear in mind that Greenspan expects double digit percentage falls in house prices. Of course all we know of the terms is that Alastair Darling says "his word is his bond". (He also said last week there was no problem with Northern Rock.) Equitable Life's unfunded pensioners know the value of the government's implicit rather than explicit guarantees. Zilch...
120 comments:
Billion pound Gvernment bail outs for bank customers. Piffle!
Anyone who believes a word Brown says via his stooge Darling needs their head examined.
They're trying to buy time and hope it all goes away but it ain't going to. Watch this bank crisis turn into a currency crisis as international investors wise up to the smoke and mirrors that is the debt-fuelled, hollowed-out UK economy.
Curency crash, house price crash, retail recession, rising unemployment, stagflation, then years of deflation. That's the future for Britain.
Well done Gordon. Where are you by the way?
Figures reveal that when ( not if )
the Housing Market crashes Gordon Brown will have to face £321 BILLION OF NEGATIVE EQUITY. That is on top of a falling share market, PFI Debt, Credit Card Debt, an arsy hedge fund and derivative foul up and Balance Of Payment crisis . What a PROSPECT, for the self proclaimed Iron Chancellor who boasted NO BOOM OR BUST.
Will chosen scapegoat Mervyn King jump before he's pushed?
Question for Guido & Co, in the event that Darling's underwriting of peoples savings in NR might end up being the biggest blank cheque written by a UK government, *if* this crisis spreads and they have now set a precedent.
On balance, who should have appeared to make that promise to the public, the new chancellor or the new PM who also ran the treasury for the last 10 years?
i dont know about mervin king , it looks like the city are viewing him as bit soft, but his first statement was not to help northern rock, and he didnt appear on darling briefing this evening . so my gues is he is quietlt furious with gordo, and there is some suspicion that the BOE board is pro gordo and threatned to put the boot into merv , if he didnt change his mind.
merv might be old trad bank of england but he is no fool, if hes been stitched up , ime sorry for him , if he hasnt then ime sorry for the british people , because that then means that gordos spin machines have not let the so called "free and independent bank of england speak"
i saw some stuff in march form assistant gov that there was no such thing as free lunch , so BOE look like they have been trying to tell us, just looks like gordos decicided not to speak with them or even discus what they say.
as for pic well me have ming the meaningless so crsh gordon would be about right.
listened to darling tonight , i dont think the city are going to take it, roumours are he has a week to do somthing if not then its unstoppable. it will still hurt if he stops the worst of it.
thanks
pig farmer
Remember Bliar's written "assurance" to David Trimble? Anyone who believes a word these criminal incompetents utter should pop round to my stall. I've got a bridge for sale at an unbeatable price - easy terms from NR.
looking at it , northern rock havent yet ysed BOE facility , but yet is expected to be picked up for pence , by finance vultures.
so all those mortgages havent gone to BOE yet then??
so what if they get sccoped by another over exposed bank, perhaps another wanless type thing.
we are being stuffed , utterly stuffed
thanks
pig farmer
Apparently, Gordon heard that things were going down the shit-hole and got all kinds of excited before it was pointed out to him that it wasn't the same as his special games of up the shitter.
Other than that, he hasn't got a clue what to do and is hoping Darling will take all the flak for him.
More seriously, can we please start a count of the number of times a senior (or not so senior) member of the government attempts to blame the last Conservative administration for this debacle? At least that way, we'll have a definite measure of Nu-Liebour's inability to take responsibility for the last ten years of economic mismanagemtn.
...or mismanagement if I could only learn to spell correctly.
If I can paraphrase William J Clinton "It depends what you mean by deposits" - perhaps Mr Brown was referring only to the organic residues left behind in branches by BR customers.
"NR" customers. Was having a 70s curled-up sandwich flashback there.
Gordon's gone quiet because the money's run out.
..or maybe Maggie did us all a favour and popped something in his tea.
Watched the BBC news report of Darling's statement.
Couldn't quite make out what he muttered under his breath as he gave that guarantee, but I'm sure the NR depositors will find out the small print detail when NR goes tits up.
But who was that zombie stood next to Darling?
I noticed that the cameras stopped showing him. I suppose not to frighten all the children watching then!
Good to see you back on form again Guido. Let's hope you et al manage to Bash Gordon, or better still, Lash Gordon.
Too right Guido.
Brown rushed in front of the TV cameras at the first Foot and Mouth outbreak, he did the same for the floods. He could have let his cabinet ministers do their job but Brown had to grab the headlines.
Now he's left Darling to fend for himself. The consequence seems to be that the British government has, on the basis of a press conference, placed the entire retail deposit network under state-supervision. We await the full details of this radical policy shift.
REMEMBER:
- if a bank goes under, will you get the interest on your savings from the government?
- how long will it take for the money to be returned to you? Months, years?
- will they blunder the bank guarantee scheme?
WE HAVE NO IDEA.
Look, Normal Lamont says giving the guarantee was the right thing to do.....so it must be ok?!!
And we are where we are because of long term events, by both financial institutes and by government. Gordon cerainly did his bit but this is part of Tony's legacy we are now getting, don't let the bugger off the hook.
28 billion for Northern Rock customers...14 million for flood victims...zilch for collapsed pension funds. Fantastic. I just love the way NuLab use my taxes. Don't get me started on the Iraq war...
To some extent the Northern Rock troubles have restored my faith in some of the British people, although it’s a pity they don’t feel the same about the misuse of the taxes they pay.
They now seem to fully understand when ANY Government says:
Your cash is safe, ITS NOT!
We will support you, THEY WON’T
Take a responsible position, THEY WON’T
Put the people first, THEY WON’T
i switch on the telly and they are STILL queueing outside despite government assurances.
Well done on the art work, Guido, you've excelled yourself there recently !
Guaranteeing bank deposits is surely a breach of EU competition law. For this reason the German Landesbanks have had to their state guarantee withdrawn.
Currently the guarantee is only a politicians promise.
News reports confirm that the queues are out outside Northern Rock branches again and getting bigger. There is also growing evidence of large and increasing withdrawals from Bradford and Bingley, Alliance and Leicester, and HBOS.
Their share prices have bounced back this morning but this will prove temporary IMO.
The bank crisis has hardly got going yet.
Will it be Mervyn King or Alistair Darling who is forced to jump first before they are knifed?
The casualty list will be a long one particularly when Soros and co start their run on the pound.
Brown's instructions to Darling yesterday to offer full compo to bank savers was a sham and done for tempary reprieve but it will prove to be disastrous.
It may upset you Guido but breakfast TV had a great shot of the Newcastle branch of Northern Rock this morning, just before they opened.
No queues, nobody waiting at all.
Where's Gordon ?
He's living the dream. Prime Minister in hiding.
Alistair Darling intially stated that the guarantee would apply to all banks. However, in one of the radio interviews he was careful to qualify that to "all banks, subject to the approval of the Bank of England".
That is a get-out qualifier which would allow the BOE to refuse to support those banks about which it was not entirely happy (e.g. some of the fringe banks) or any of the banks if the situation got out of hand.
Sky News has shown various branches of Northern Rock from Golder's Green to 'oop North' all beseiged by large and growing crowds of worried savers who all say they don't believe a word the Government says.
this "guarantee" could turn out to be counter-productive, in that , if the government guarantees , you bloody well make sure you get ALL of your money out.
where exactly is the government getting this £24 billion from? loose change?
No guarantees were offered to Equitable Life pension holders, even though there were very reputable plcs with pension schemes managed by Equitable Life. Then again perhaps NR depositors vote Labour...
Hmmm, so the government has decided to guarantee all current deposits in UK banks. Which means that there is absolutely no risk premium to be attached to it. Which means that if we take that money and invest it in the rapidly rising but admittedly a bit risky Chinese stock market we can't lose but might win big. We feel a cunning strategy coming on.....
When Brown was Chancellor they would have asked him what was happening. Now he is PM they are still asking him, rather than the chancellor who is i charge of the economy, what is happening.
There is no £24bn. They don't actually need to have the money because they know it isn't going under.
As I see it, Northern Rock 'management' fuck it up and the 'Government' use my cash to prop the bastards up.
Why?
And as to 'guarantees', just read the fine print very carefully indeed. Oh, so they haven't issued any 'terms' yet? In that case, be even more cautious. These guys are not going to offer unlimited support - if any at all. Who do you trust?
Lloyds TSB were sniffing round Northern Rock the other week with a view to a takeover. They didn't proceed and it was then spun by the B of E and the Govt that they stopped the takeover because they didn't want to "panic the markets".
That is another huge lie. The fact is Lloyds ran away when they took a peek at the books and saw the terminally dire state of Northern Rock's finances.
NR are dead in the water and no amount of Govt spin will prevent it eventually being given away to a foreign asset stripper.
id said...
...or mismanagement if I could only learn to spell correctly.
Not the spelling it's the inane piffle you spout that requires attention.
So far all we've had is one press statement from the Treasury. That's all. Nothing more.
Yet billions of pounds are at stake. Is this the way to run financial policy? It's just headline grabbing stuff without detail or thought. Buy now, pay later.
city insider said...
Lloyds TSB were sniffing round Northern Rock the other week with a view to a takeover.
Bollocks, city insider my arse, the nearest you've been to the "city" is to watch them playing footie.
No queues outside A&L at Piccadilly this morning.
Chuck Unsworth said...
As I see it, Northern Rock 'management' fuck it up and the 'Government' use my cash to prop the bastards up.
Wrong, your cash pays for my Housing Benefit, much as my cash paid for your education, and your parents pensions, get the picture dickhead. I helped you and now you can fuc**** well help me.
Good morning English chums from Stanislav the New Scot. Listening at Government Radio Service this morning Stanislav learn that Mr Adam Applesauce, czar of Northern Rock not really useless, greedy, uneducated gabshite but most excellent philanthropist and social reformer. Like new George Cadbury, really. On Today programme reporter make tell that Northern Rock Bank actually support whole North-East with many givings of money to homeless hostels -caused by NewLab housing and penal and mental health cack-handiness, incindentally - make redevelopment project of whole NE and directors all run round like Jimmy Carter build new house in spare time for poor people to get property ladder. Not really bank at all. Spirit of North East, say local rag editor Chris Fuckwit; get behind Northern Rock, he said; not like wicked Southerners who only want bank to be bank and not branch of Salvation Army.
As New Scot from Poland, Stanislav consider very good idea give twenty eight billion pounds of taxpayer hard-earn money to shit bankers. In my country make revolution. English more clever. Make sang froid while snot-eating Scotch pervert shit in face AND steal money.
Main thing is if bank fall will Mr Applesauce still get big failure bonus, like Labour way ? Peerage too ?
Stanislav remember that Geordiesboys likely lads, salt of Earth Northeasterlies elect Lady Peter Mandelscock and husband, Mrs Renaldo, not just one time, but two times. Very smart electorate. Believe any old shit. If only Lord Mandelscock still up North swishing around in armoured Daimler making blowjob on Mrs Renaldo everything be fine and dandy. Everybody have fishy on dishy. Everybody go Bladon Races.
Mad Cyclops to go on Radio 4 WATO programme say favourite record not Arctic Monkeys after all but Fog on the Tyne all mine, all mine. Play all the time when having wank.
Rich said...
No queues outside A&L at Piccadilly this morning.
And the shares are on the up, but this mob don't want good news all they want is the collapse of the banking system so they can post silly comments here, pathetic vermin that they are.
stanislav, a New Scot said...
Good morning English chums
Boring.
Fred said...
Figures reveal that when ( not if )
Nothing like an exhilarating post from a well informed blogger, and this is certainly nothing like ....make an effort Fred, or push off.
Nice queue outside Northern Rock in Mayfair at 9.30 this morning. The flow of cash has slowed, but they will still go down. NR is a dead man walking.
@ Tax Paying Pensioner
Don't be a cunt all your life - take a day off. How old do you think I might be, and what do you know of my personal circumstances, eh?
You 'helped' me? Don't be such a moron.
Brown and his cronies are using taxpayers' money, probably illegally, to support an incompetent bank and its idiotic investors. Why do you think that might be?
Take a look at their previous pronouncements and then start thinking - that's if Alzheimer's hasn't fully got to you yet.
Anonymous said...
So far all we've had is one press statement from the Treasury. That's all. Nothing more.
Switch on the telly, press the little red button on any of the 24 hour news channels and you will find nothing but......if you were expecting a letter personally addressed to you I fear you are going to be disappointed.
Chuck Unsworth said...
@ Tax Paying Pensioner
Don't be a cunt all your life - take a day off.
Original you are not, you fuc* off, pick on someone of your own age your asinine prick.
@ Pensioners are us
"Original you are not, you fuc* off, pick on someone of your own age your asinine prick."
Marvellous!
Chuck Unsworth said...Take a look at their previous pronouncements and then start thinking - that's if Alzheimer's hasn't fully got to you yet.
Hope the aged parents don't get that vile illness, still with you to count on they should be O.K. bit nasty though, like you.
pensioner.
Obviously not a pensioner with savings in Northern Rock. You'd still be in the queue.
Anonymous said...
Nice queue outside Northern Rock in Mayfair at 9.30 this morning. The flow of cash has slowed, but they will still go down. NR is a dead man walking.
Shares have started to recover.
Anonymous said...
stanislav, a New Scot said...
Good morning English chums
Boring.
I thought he was pretty funny myself, and at least he had the guts to sign his name, unlike you.
LONDON (Reuters) - Shares in Northern Rock, Alliance & Leicester and other banks jumped on Tuesday as investors were reassured by the government's pledge to guarantee all deposits held by Northern Rock.
Northern Rock shares, which had more than halved in value since Friday, rose 10 percent in early trading, as dealers said the government's measures could restore calm to customers and investors.
Queues formed at branches of Northern Rock again early on Tuesday, but lines were significantly shorter than on Friday, Saturday and Monday.
Went to the Alliance and Leicester for a mortgage this morning. They told me to fuck off, they didn't have any money and if they did they wouldn't give it to me. Tried the Bradford and Bingley after and they said they didn't have any money and in fact was there any chance I could lend them a few quid, just till the weekend. I told them to fuck off. Anyway, I don't suppose I will need a new mortgage now as the prospective buyers have pulled out. Apparently the Northern Rock told them to fuck off as they weren't getting any money out of them. Nice young couple. Tried for years to buy a new house to start a family and just when they get a deposit they can't get a mortgage. Ah well, I guess I'll take another 10% off the asking price and put it back on the market. Might be lucky, you never know.
Listen to Alistar Darling's words carefully. He said that EXISTING deposits would be protected. So anybody depositing money now with NR will not be covered. Hence NR cannot get themselves out of this cash-flow crisis by taking in retail deposits after those potential retail customers realise their deposits will NOT covered by MacCavity's puppet's words.
NR is thrown into limbo - haemorrhaging cash in its death agonies.
pre-pensioner said...
pensioner.
Obviously not a pensioner with savings in Northern Rock. You'd still be in the queue.
Yes I did notice that many in the queue were pensioners, they were afraid you know, it happens when you get older. Still it provided the ammunition for your comment and lets hope you have a happy retirement free from worry.
Wanted to contribute to HYS on Northern Rock, Imagine my shock and surprise when I read this:
"Have Your Say service not available
This Have Your Say service is currently unavailable. We are doing some essential software maintenance.
We are sorry for the inconvenience."
How much did Crash Gordon do to arange this? I wonder how long access will be difficult?
Nice way for Al Beeb to stay in favour with McStalin Broon.
Anonymous said...
Went to the Alliance and Leicester for a mortgage this morning. They told me to fuck off,
Get a job first.
Since the chief secretary to the treasury (whoe's name I cannot remember - some Labour appartchnik or other) had a go at the Tories over the ERM crisis (when we were sold down the river by the French & Germans), it is useful to recall other great Labour actions:
Harold Wilson 'The Pound in your pocket....' over devauation of Sterling back inthe '60s.
And then in '76, "Crisis, What Crisis?" followed by a IMF bale-out. Jim was it?
So Chief Secretary - it's kettles calling pots black.
"Went to the Alliance and Leicester for a mortgage this morning. They told me to fuck off,
Get a job first."
I'd love to, but the local car factory is now full of Polish blokes on the minimum wage. Still every cloud has a silver lining - I might be able to sell my house to one of the local landlords who will rent it out to those very same Polish blokes.
I am glad that I have absolutely no money - it is great to be worry free! I don't even have a mortgage or a pension plan.... citing isn't it?
Anonymous said...I might be able to sell my house to one of the local landlords .
Are the Council aware of your plans to see their house ?
"Anonymous said...I might be able to sell my house to one of the local landlords .
Are the Council aware of your plans to see their house ?"
I don't have a council house. I applied for one but I was turned down. Apparently the Iraqi families coming to the UK because of the war get higher priority because they have greater need.
northern rock share prices are up and rising. poor guido, back to the drawing board to scratch arounf for another piece of propaganda. guido, the goebbels of the net.
Ivan Dobski said...at least he had the guts to sign his name, unlike you.
Fuc**** brave of him , are you really as stupid as your posting suggests.
Where's Gordon?
An equally enthralling question at present is, 'where's Guido?'
I hope he's not having to queue anywhere.
Anonymous said...
Listen to Alistar Darling's words carefully. He said that EXISTING deposits would be protected.
I should bloody well hope so, what did you expect you idiot.
I see the AstroTurfers are out in force in the blogosphere today spreading the 'good news' about Northern Rocks phoenix like share price rise. Face it, the business model is blown to pieces. They're dead meat.
It's is a temporary respite for Gordon and chums - by continuing to fiddle with the system they're just delaying the inevitable crash. The more they tinker, the worse it will ultimately be - look to the US for what's heading our way...
Pricks.
The problem is not Northern Rock. The problem is where has all the wholesale cash gone to.
Why and where has it gone and especially why now?
If the problem was just one rather silly socialist favored bank, there would be no problem worth any real note or panic.
However the above question is far more important for the future of the human race then may seem apparent right now.
If you are still having trouble working it out for yourself, here is a clue.
Cash/liquidity gos to where the profits are highest and the risks are predictable and controllable, if it possibly can. The trick is to be able to predict world events.
The best way to do this is to be in control of them preferably by direct influence and power over national or pan-national governments.
If not, simply being in the know about what a country like say Iran China or the USA for example plan on doing in the near future is enough to make almost risk free profits even your personal computer would have problems counting.
To conclude IMHO
Its either a war coming or countries like China and India are the only games in town left worth playing, or both.
Either way the cash is not coming back any time soon if at all.
Gordon Brown is planning to sieze all the repo houses and use them for social housing AND all the vacant buy to let flats! So the massive queue of fake asylum seekers/economic migrants who are first in line will be moving to a street near you! 4/5 bed houses are needed because the migrants have large families and the flats will go to the usual people ie criminals/bogus refugees Etc while the native population will come last as usual!
This will drive out native Brits and drive down prices further!
The upside is that those NULAB middleclass arseholes will have to live in a sink estate environment for the first time and they will have to sit back and watch their street turn into a multicultural hellhole just like the lower orders have been forced to do for years!
No street or area will be safe from the sink estate spiral into decline and crime and poverty! No longer will the rifraff be confined to council estates because wherever their is an empty house in will move a large family of migrants who will then do a captain hook and buy it under the right to buy scheme dirt cheap allowing them to pick up more houses Etc Etc!
The NULAB middle class elite are going to have to live in the shite that other people have had to live in for years now!
"It's is a temporary respite for Gordon and chums"
Yes. Lest we forget, NR was in the shit not because of the lack of funds coming in from the High Street but from the funds it usually accesses in the money markets to borrow short-term to fund long-term mortgages. It still cannot do that because the liquidity has dried up, so it cannot roll-over its debt (except by going to the BoE which is hardly a long-term solution). Basically it is still the case that three of the wheels have come off its business model and the last one (deposit accounts) has developed a severe puncture. NR is a dead duck. A&L and B&B and a number of others are clearly in exactly the same position, hence their desparate need to try and get money from high street deposit accounts. The share price of these companies will likely fall further once the euphoria surrounding today's announcement has passed and the reality of their situation rears its head.
This is the beginning of the end of the "feel good factor". Gordon had best go to the electorate asap.
To anonymous at 11:29 -
Too late for Gordon now.
Has anyone registered www.crapgordon.com? You could get a whole series of comics going, telling us the story of all the blundering capers of Crap Gordon and his Crap Colleagues.
Agree with several of your posters that the NR business model is fucked, the brand is tainted and they will have to sell up sooner rather than later. But that was Mervyn's intention wasn't it, to punish them so that it serves as warning to others.
Meanwhile, the depositors are safe, that's what matter.
"The share price of these companies will likely fall further once the euphoria surrounding today's announcement has passed and the reality of their situation rears its head."
Actually, if you compare with the beginning of the month, NR are 50% down and A&L are 40% down, so no sign of any real respite for these two.
The 1/2 hour of vinegar strokes I mentioned yesterday before "PM" emerged from the closet now seems wildly optimistic - he's been at it now for over 18 hours and is still going strong in there - Gordon B, truly a Ron Jeremy for the new millennium
"Meanwhile, the depositors are safe, that's what matter."
Agreed, but I think we can kiss goodbye to rising house prices now. House prices are bound to fall rapidly as lenders are not going to want to hand out yet more cash, so those forced to move will feel the pain.
"The upside is that those NULAB middleclass arseholes will have to live in a sink estate environment for the first time and they will have to sit back and watch their street turn into a multicultural hellhole just like the lower orders have been forced to do for years!"
fantastic!
Gordon should have gone to the country as soon as he became PM, can't believe he didn't see all this coming.
He is as deluded as he is cowardly.
To the pathetic troll who tries to be me @9.55 against the excellent id. Cowardly cunt, I voted with my feet against your socialist hellhole years ago, so if you post when you finally start work at 10am you twat it can't be me.
Ratty tatty is late today, are you a commissar in this nu-liebour counter-intelligence office?
Predictable assholes, and whichever brave apparatchik said stanislav isn't funny, well what makes you laugh, Darling's financial acumen? Me too, dickhead.
45govt I'm Gordon's favourite catamite and don't you forget it prole.
To ratty tatty @ 12:42 PM -
'I'm Gordon's favourite catamite and don't you forget it prole.'
Is that you Konrad, coming up for air?
You must be in pain today.
Ken Clark on the BBC news just.
"Where's Gordon?
He's disappeared down a rabit hole. "
Where in Law, Act of Parliament or statutory Instrument did Darling draw upon the legal right to make a promise to use tax payers money to bail out Northern Rock investors if it goes tits up.
There is non, he will have acted illegally if the scenario was ever to happen.
Check out the Bank of England charter http://www.bankofengland.co.uk/about/legislation/legis.htm
How your money could bail out Northern Rock savers
18.09.2007
by John Stepek
The queues outside Northern Rock didn’t disperse yesterday, despite all the public reassurances from the government and the regulator.
As Gordon Brown watched the television screens, witnessing a sight that most people would associate with 1930s America, rather than glorious noughties Britain, centre of the financial universe, he must have had a sinking feeling.
A couple of months ago, there was talk of a snap election. Now he’ll want to put as much distance and time between the queues at Northern Rock and the queues at the polling station as possible.
But in the meantime, who can he turn to to bail him out of this mess? Why, the people he‘s always turned to, of course - the taxpayers…
That’s right. All those people queuing up at Northern Rock, and all those people now wondering whether they should be forming lines at Alliance & Leicester too, needn’t worry any more. That’s because the rest of us are going to pay for their savings if their chosen bank goes bust.
Hmm. For Northern Rock alone, that could mean a bill for the taxpayers to the tune of £21bn, according to The Telegraph. That’s quite hefty. It’s a good thing that Gordon Brown managed to salt away a huge surplus of taxpayers’ money while times were good. After all, we’ve had 60 or so consecutive quarters of economic growth here in the UK, and massive tax receipts from all these companies that have been doing so well during our recent boom years, not to mention the huge stamp duty and inheritance tax take, so there must be something in the pot to shell out for emergencies like this one. Isn’t there?
Ah, there’s the rub. Mr Brown must have been asleep in Sunday school when they were reading out the bits about Joseph telling pharaoh about the seven fat cows and the seven thin cows. Because while he was Chancellor, Mr Brown wasn’t putting anything away during the years of plenty. In fact, he was borrowing more, mainly to feed that very British, massively overweight sacred cow, the NHS. And now that we’re heading for the years of drought - that’s falling house prices, rising inflation, and higher unemployment - there’s no cushion to fall back on.
Consumers don’t have any cushion either - in fact, all they’ve got to fall back into is a great £1.3 trillion-deep abyss. And yet the government is happily promising away what little money they do have.
“As the government’s attempts to shore up public confidence in the banking system became increasingly desperate, the Treasury said it would also act as a guarantor for any other lenders that got into similar difficulties, leaving it open to an almost limitless financial liability,” says The Telegraph.
In short, it’s a big gamble. If the queues don’t now clear up at Northern Rock, there is a chance - particularly following yesterday’s share price plunges throughout the banking sector - that the panic will spread to other banks. “Then life will get very difficult,” as Peter Spencer of the Ernst & Young Item Club think tank put it.
http://www.moneyweek.com/file/35088/how-your-money-could-bail-out-northern-rock-savers.html
If NR or another bank goes tits up during the NuLab love fest, Gordon and Darling and his wunch of bankers will find it hard to hide.
When was he last sighted in Whitehall?
Who would have thought that they would secure funds for Gordons re-election from the Bank of England? I suppose the drying up of liquidity in the Honour's market was to blame.
Article 87(1) EC states: “Save as otherwise provided in this Treaty, any aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favoring certain undertakings or the production of certain goods shall, in so far as it affects trade between Member States, be incompatible with the common market”
ten more years said... @11:06
The point you seem to have missed, O ten more years, is that it is not business as usual for anybody considering putting money into NR. They've got no protection, so how is NR to dig itself out of this hole? In other words, the Chancellor's action has made certain the death of NR.
Gordon's probably slapping all his spare money into the NR. Nearly 7% interest AND a full guarantee. Can not be bad. Meanwhile city boys have started buying the shares again I see. Ready to make a right royal profit as the value of the business has of course scarcely changed.
"Meanwhile city boys have started buying the shares again I see. Ready to make a right royal profit as the value of the business has of course scarcely changed."
Nah, they were hoping someone might buy it. Shares will probably drop back again because the price has gone up too high to make it look attractive to predators.
Chris Paul, you are such a bellend - it's obvious you've never had to work in the real world. Darlings guarantee only applies to existing deposits, the terms are unknown and how long it would apply for is anyones guess. It's a load of baloney, hot air designed to keep the voters in the NE on side, and calm the City for a bit. The markets will not lend them money, therefore their core business is busted. NR is a dead man walking - you can smell the blood. Only a fool would give them new money.
It's very sad for all the hardworking staff who'll lose their livelihoods - they're just pawns in Gordons 'Big Ego' game. Maybe it help focus their minds at the next election when they remember who stuffed them over?
I'm waiting for someone truly boneheaded to misread the situation and pile in - anyone care to bet that the Trades Unions will be demonstrating some expensive-to-members solidarity with NR this week?
"I'm waiting for someone truly boneheaded to misread the situation and pile in"
How about:
"The former manager of Newcastle United Sir Bobby Robson said he would open an account at Northern Rock."
Law of unintended consequences at work. European bonds are falling, uk gilts falling, hot money rushing into stirling banks as, now high yielding deposit rates available, these become as good as gilts guaranteed by Gordon.
is it time to reactivate the authority of the Bank of England which had its bank supervising role removed by a certain G.Brown - currently in hiding?
He is also known as a purveyor of precious metals from the Bank of Englands reserves but only when prices are low enough.
tapestry said...
is it time to reactivate the authority of the Bank of England.
Your posts are getting briefer, and for that we give much thanks.
Anonymous said...
ten more years said... @11:06
The point you seem to have missed, O ten more years, is that it is not business as usual for anybody considering putting money into NR.
Well don't then, problem solved.
Anonymous said...
Ken Clark on the BBC news just.
Kens pissed because his bonus from the baccy companies has been slashed thanks to this Governments efforts.
45govt said...
To the pathetic troll who tries to be me @9.55 against the excellent id.
Beginning to get to you then ? loved the "excellent id" bit, nice touch, do you think he bought it ?
For fucks sake mike put your ball gag back in, put on your sheep outfit and get over to Gordon's place, he needs cheering up and a bit of your lice infested arse to mouth action is the least you can do for him.
Bought it? I paid for it, ratty tatty. Compliments are expensive on here!
I do offer my sincere thanks to the excellent and incisive 45govt though.
What we need to do is compile the data for IP addresses commenting on this site and other sites combined with the times of day so that we can prove Gordon and his minions are mis-spending government funds by using Nu-Liebour staff on the state payroll to post rebuttals (or just offensive nonsense) defending their terrible record. Any chance, Guido?
Is it true that neither Brown nor Darling have passed a driving test?
If this is true it speaks volumes about the abilities of the men running our country.
Chris Paul of course will be putting his money where his stupid mouth is. NOT.
As he is so sure of what he speaks he should borrow as much money as he possibly can including the kids piggy bank and he will get rich over night. Simple.
ALL my spare cash is in gold and platinum and has been for the last 7 years. Which just made me another 7% in one day. Personally I think NR is a 'dead DOG walking' and always was going to be. But what do I know?
"Nothing ventured nothing gained," as my old grandmother used to say.
Go on Chris you know inside every brainwashed socialist twit is a bread head capitalist Napoleon pig just trying to get out. This could be your lucky week.
gordos been on telly, some rubbish about britain been able to able to weather the international crisis now affecting the world.
well pardon me mate, but if the banks had run like they should have we would have been able to weather it much better , never mind immediate siezure.
as for gavin evans on the BBC has anyone noticed he doesnt look at the presenters when he speaks, and on tonights news slot had a curious hypnotic whirly animation, i could feel him trying his obiwan powers "there is no crisis everythings alright".
it all feels wierd i mean if its possible to use tax payers money to underwrite banking mis mangement, well why not use it to help all those small businesses going bust in record numbers.
just as i thought one rule for gordos friends and another for the rest of us.
cant wait for sunday we should know if fed interest rate cut move can work by then.
thanks a very puzzled pig farmer
dear guido
please could we have a save mervin king campaign , looks like nu lab is moving it over to his problem.
look at the recent mpcc votes , merv was on his own for quite a while
whose wrong whose right? merv or the other commities members.
thanks
pig farmer
One thing to think about at least is this.
Lets imagine that Gordon Brown is really an UNREFORMED Neo Marxist on a serious long term mission.
Is it possible he has long engineered this crisis as an excuse to 'very radically change' the banking system?
Think about it how else can he possible get out of the hole he has long since been digging?
Why else dig the hole in the first place if there was no planned punch line when the spade busts?
The BBC will not blame Gordon Brown they will blame the Free market system, long enough to make this smallish crisis into an almost complete national financial collapse followed by a massive devaluation of the "pound in your pocket."
Gordon Brown will then at this point come up with the only solution that will by then make any sense to the otherwise soon to be homeless and or bankrupt large section of the British electorate.
A government of national unity with Gordo the terrible at its dictatorial head.
This country will by this time be effectively a one party state with a central government power base to die for, and a government owned banking system to hold it all up.
Perfect time to then turn his head to Europe for more of the same.
Now that could all just be a load of crap, but there again is any one completely sure these days that it is not?
Brown's problems were made in Britain by Brown. He raised t