Bradford & Bingley Bailout by the City

tradetime

Mandark wrote: »

If I was Darling I would be saying to the banks, we saved your reps last time with the Northern Rock bailout, now you all sort something out for the B&B.

I suspect the position of most banks is precarious enough that they cannot risk bailing out other banks.

WTF?_2

tradetime wrote: »

I suspect the position of most banks is precarious enough that they cannot risk bailing out other banks.

Yep - time to turn up the speed on the printing presses to '11' and start monetizing bad debt. Maybe the public aren't being so stupid by borrowing more and saving less (see other post) - quite possibly they have the right idea if the strongly inflationary path is going to be taken. At least they'll have fun before the next great depression.

worldtraveller

Rikki wrote: »

Can the Government pick and choose the banks it decides to rescue?
It saved Northern Rock but then Darling has his mortgage with them. Do you think they should bail out B&B should the need arise?

The Government/BOE (aka the taxpayer!) is surely now already indirectly bailing out many of the banks by buying up their dodgy loan stock for Government securities. This is likely to continue for some time and IMHO increase considerably as derivatives unravel further.

ad44downey

Bradford and Bingley shares finish down 16% today alone to only 42 pennies a share.

Somebody has got to rescue this turkey very quickly before things are too late.

Dithering_Dad

brit1234 wrote: »

I knew this was coming and in January I was contemplating cashing in my share ISA before the market fell. I didn't and the value has plummeted removing valuable money from my deposit.

I suspect that if you knew this was coming you definitely would have moved your money into cash. Instead, like most people, you thought there may be a possibility this might happen and a possibility it might not. You only know because of hindsight.

Perhaps we should coin a phrase for the many self-declared 'financial experts' on MSE. How about 'Retroexperts' or 'Hindsightarians'?

You didn't pull your money out of your shares because you didn't know what the future held. You still don't. Anyone reading the alarmist drivel on the House Price board should bear this in mind....

napoleon

If the share price falls much further then surely there'll be a run on the B&B, in the same way as happened with Northern Rock?

Or has the government already promised to bale them out if they go breasts up?

brit1234

Dithering_Dad wrote: »

I suspect that if you knew this was coming you definitely would have moved your money into cash. Instead, like most people, you thought there may be a possibility this might happen and a possibility it might not. You only know because of hindsight.

Very confrontational today aren't you Dithering Dad.:D

Oh I knew it was happening, what surprised me was the rebounds in January and February. Matters little to me as it only represents 1/6 of my deposit and I can fill my ISA quota with cheap shares in the mean time

I don't intend to buy for at least another year so I should have a £35,000 deposit by then.:D

Research, preparedness, mitigation, I love it.

Dithering Dad I suggest you go back to the playground and continue your name calling there.

:rotfl:

Dithering_Dad

brit1234 wrote: »

Very confrontational today aren't you Dithering Dad.:D

Oh I knew it was happening, what surprised me was the rebounds in January and February. Matters little to me as it only represents 1/6 of my deposit and I can fill my ISA quota with cheap shares in the mean time

I don't intend to buy for at least another year so I should have a £35,000 deposit by then.:D

Research, preparedness, mitigation, I love it.

Dithering Dad I suggest you go back to the playground and continue your name calling there.

:rotfl:

Actually, I didn't call you a single name. I merely pointed out that you have no more idea of what will happen in the future as anybody else (as evidenced by your stockmarket losses). This was done merely to point out to newbies that the so called experts on MSE are just as much in the dark as everyone else and so to take their doom-mongery with a large pinch of salt.

brit1234

Dithering_Dad wrote: »

It matters to me how all of my investments do, no matter if they 'only' represent 1/6th of my wealth.

No 1/6th of deposit not wealth, there is that reading difficulty of yours again.

I recommend you start with this.

Anyway it is going to be interesting to see the break down of the next repossession figures by bank. In the last ones Northern Rock represented a significant amount as well as B&B. Their weak lending criteria will destroy them especially now as banks are starting to pay lump sums for risky customers to walk away with their mortgages in attempt to improve mortgage books.

pickles110564

brit1234 wrote: »

I recommend you start with this.

For once i agree, excellant book.