Re: Re: northern rock is now nationalized
financeguy said:
The key government error was not allowing Lloyds TSB to step in with a rescue package when problems first emerged in Northern Wreck during the late summer of 2007.
what kind of package was it?
similar to what virgin was offering now?
kaletsky sounds almost hysterical in his extreme opposition to the government's decision to nationalize n.r.
he makes good points though, and i suppose things could easily fall part for the government... and more importantly, the people who have money tied in with northern wreck, as you so aptly referred to them as.
i haven't read any timeline, but i've seen it suggested that the government will sell it off shortly.
what could shortly possibly mean? how long will the bank of england have their hands tied up with this?
it's a mess... a huge mess, and the repercussions could be far worse than anyone realises.
read an interesting article today, suggesting that governments throughout the west will have to play a more active roll in banking as so many of these institutions (particulary in the united states) have been far too eager to cash in on something that you just KNEW would come back to bite them in the ass.
i don't know about elsewhere, but in canada you can now get a mortgage with 0 money down. outrageous.
i believe before that it was only something like 5 per cent, but it's the mentality of everything. it's entirely foolish. banks have been fostering this belief that it's okay to borrow money you won't be able to fully pay off until you've retired at 110 and died at 65.
one of the reasons the northern rock fiasco has been of such interest to me is because i truly think that this could potentially, as stated before and in other articles such as the one you linked to, be the start of something extremely dangerous on a world-wide scale.
i sound like a fear-mongerer don't i?
sorry about that...