An economic collapse ahead?

[Trumpton]

warren zevon rip wrote:

> colonel wrote:
>
> > There's one hell of a lesson there. Keep it in little
> bundles-
> > plenty of baskets and remember that c?31,000 personal limit!
> > Invest in bonds- Government ones called 'gilts' are
> > super-secure: they are guaranteed by the Treasury. If you are
> a
> > [legitimate] non-taxpayer, remember offshore.
>
> Or just buy a street in Greenock.

Or buy all of Greenock, Gourock and Port Glasgow.

[Trumpton]

Some people are really that gullible they believe, without question, all these knobhead financial "experts" that swarm over a story like this.

[Arginald Valleywater]

Nope. Northern Rock is run slightly different to other ex mutuals. It borrows to lend rather than lending on its members deposits. Old rule, when I worked in the trade was ?1 deposit = ?3 of mortgage lending and not a penny more.

The other banks wouldn't let a company as big as NR go down as they would all suffer.......

[Shopgirl]

Everyone is talking about the people that have savings with NR, but what about the people with mortgages, do they have anything to worry about with what is going on!

[colonel]

Or a khazi in South Kensington.

[colonel]

The mortgages do NOT become null and void- the 'free house' scenario that some muppets have been writing about on the BBC and other websites.

Administrators would take over the mortgages and then sell them on to pay off the creditors of the bank. Mortgagees would be informed by writing when the administrators took over the mortgages and again when new owners took them on.

Watch the eejits who will simply stop paying their mortgages- and then wonder why they are being evicted!

[Deuce Bigolo]

Just watched a doco on the sub-prime lending disaster in the US of A

As the hedge funds on wall street(Unregulated and totally opaque I might add) implode then we will see who around the world has their finger in the pie

Makes you wonder how it is regulated financial instituitions like banks are allowed to use unscrupulous unregulated third parties like sub-prime lenders to keep their profits rising

Bad lending practices are bad business in the long term

We will all pay for it Eventually

[planeterotica]

Deuce Bigolo wrote:
>
> Bad lending practices are bad business in the long term
>
> We will all pay for it Eventually

planeterotica wrote:

We allready are paying for it as the goverment has pledged to give finacial backing not only to the Northern Rock but to any bank that needs it, this means billions must now be set aside in case it is needed for a bale out, this isnt Gordon Browns money it is our money and now the taxpayer will have to fork out more of their hard earned dosh to bale out the greedy banks who have been profiteering for years by giving easy credit and this goverment has done nothing to stop it and Gordon Brown can lay all the blame on the Bank Of England as he gave them the power to set interest rates !sad!