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northern rocks £14 billion

2456

Comments

  • Cat695
    Cat695 Posts: 3,647 Forumite
    Cleaver wrote: »
    How is it 'down the drain'? Did you not understand the story?


    Because the money will be lent at higher interests rates to people who can't afford it (so this just puts people in BIGGER debt)......we're going right round like a record

    they already owe £26bn

    and they will be borrowing even more money off the goverment.....how much? it doesn't say

    So how is that NOT money down the drain??
    If you find yourself in a fair fight, then you have failed to plan properly


    I've only ever been wrong once! and that was when I thought I was wrong but I was right
  • £14 billion here, £400 billion there, all these billions are mounting up......I'm still waiting to hear from the government how all this money is going to paid back....
  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    FoxtonsRIP wrote: »
    £14 billion here, £400 billion there, all these billions are mounting up......I'm still waiting to hear from the government how all this money is going to paid back....

    It will be paid back when the Government sell NR for a big fat profit.
  • Cleaver
    Cleaver Posts: 6,989 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    beingjdc wrote: »
    Because it's designed to make housing more expensive, and therefore the UK

    * More in debt
    * Less competitive

    It would do less damage down the drain.

    Well, that's the rather avant garde conspiracy theory view.

    I guess the more mainstream one would be that they 'saved' a bank going bankrupt even though it was a profitable business (albeit risky), have spent a year ensuring they bring in debt and increase assets (which they've done very well by all accounts) and are now using it as a device to sensibly loan to people who want to buy houses.
    Pssst wrote: »
    Where did they get the £14b from?
    ad44downey wrote: »
    They'll just borrow it like all the other money they've borrowed. Our children and grandchildren will be the ones who'll struggle for decades to pay it back.

    Or, less sensentionally you could get the answer from the article: "[It] will be financed with money from new deposits, repayments on existing loans and more government money. "

    I think Brown et al have handled the economy like Westlife handle songs (i.e., very badly), but I don't really see what the problem is in this situtaion.
  • Cat695
    Cat695 Posts: 3,647 Forumite
    FoxtonsRIP wrote: »
    £14 billion here, £400 billion there, all these billions are mounting up......I'm still waiting to hear from the government how all this money is going to paid back....


    By bending every single working person, every single person with savings in turn over a table and extracting it from our [EMAIL="a@rse"]a@rse[/EMAIL] (and our childrens to)
    If you find yourself in a fair fight, then you have failed to plan properly


    I've only ever been wrong once! and that was when I thought I was wrong but I was right
  • Cleaver
    Cleaver Posts: 6,989 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Cat695 wrote: »
    Because the money will be lent at higher interests rates to people who can't afford it (so this just puts people in BIGGER debt)......we're going right round like a record

    they already owe £26bn

    They did owe £27 billion. They now owe around £10 billion and look set to repay all the government money by the end of 2009.
  • Cat695
    Cat695 Posts: 3,647 Forumite
    Cleaver wrote: »
    They did owe £27 billion. They now owe around £10 billion and look set to repay all the government money by the end of 2009.


    where does it say that?

    and according to some acrticles they owe around £33bn not £26bn

    http://www.hemscott.com/news/comment-archive/item.do?id=42408
    If you find yourself in a fair fight, then you have failed to plan properly


    I've only ever been wrong once! and that was when I thought I was wrong but I was right
  • Cleaver
    Cleaver Posts: 6,989 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Dan: wrote: »
    It will be paid back when the Government sell NR for a big fat profit.

    And possibly sell RBS, Lloyds and many others for profit.

    And I'd have a cheeky fiver that it'll be Cameron selling them for a profit and somehow claiming how brilliant he is about it all.

    (this isn't a pro Labour, anti Tory rant by the way. I think they're all a bunch of gaping incompetent scrotums.)
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Pssst wrote: »
    Where did they get the £14b from?

    In the main from repayments by existing mortgage holders and new fixed term deposits at competitive rates. I doubt the Government will provide much funding. Remember all depositors money is guaranteed against loss.

    About £5b will be advanced in 2009 and £9b in 2010.

    Interesting how most of GB's policy statements affect key labour areas. NR = Northeast, Motor Industry = Midlands. Maybe something to with marginal seats.

    Back on track now. Any profit goes back into the Treasurys coffers. Though borrowers will be paying above market rates for their funds.
  • Cleaver
    Cleaver Posts: 6,989 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Cat695 wrote: »
    where does it say that?

    It doesn't say it in that article, but it was in a Times piece I was reading this weekend.

    Can't be bothered to do too much Googling, but this article from October 2008 puts the debt at £11.5 billion then:

    http://www.dailymail.co.uk/news/article-1077540/Bank-fatcats-presided-Northern-Rock-collapse-NOT-face-court-action.html
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