McMcKinsey believe households have lost out through QE

CLAPTON

grizzly1911 wrote: »

Why Northern Rock was doomed to fail.

http://www.telegraph.co.uk/finance/markets/2815859/Why-Northern-Rock-was-doomed-to-fail.html

doesn't really explain why is was 'doomed to fail' unless one takes the view that the world financial crisis was inevitable.

Graham_Devon

Well this is all a little bizzare.

We needed QE to stop the entire economy collapsing.

However, Northern Rock, a highly exposed bank, would have been just fine were it not for the pesky regulators, and would have, seemingly, stood the test of the economy collapsing.

I'm paraphrasing, obviously, but some of you appear to be doign all you can to back up Hamish and his NR stuff, but finding in doing so, you are falling over yourselves and ignoring the fact that while you are talking of the entire economy collapsing to prove one point, you are trying to suggest everything would have been fine to prove another.

Can't be both.

chucky

Graham_Devon wrote: »

I'm paraphrasing, obviously, but some of you appear to be doign all you can to back up Hamish and his NR stuff, but finding in doing so, you are falling over yourselves and ignoring the fact that while you are talking of the entire economy collapsing to prove one point, you are trying to suggest everything would have been fine to prove another.

Can't be both.

At times like this it's probably best to to not post anything when you don't understand the bigger picture or the dynamics of the global financial crisis. The NR model works in a functioning liquid market with high demand, it doesn't work well in an illiquid market with inconsistent demand.

Scrootum

CLAPTON wrote: »

doesn't really explain why is was 'doomed to fail' unless one takes the view that the world financial crisis was inevitable.

A few people did know it was. It was a pretty open secret that trillions of derivative assets being held and traded by the large institutions were virtually worthless. It only required that fact to come out into the open and everything fell apart.

CLAPTON

Scrootum wrote: »

A few people did know it was. It was a pretty open secret that trillions of derivative assets being held and traded by the large institutions were virtually worthless. It only required that fact to come out into the open and everything fell apart.

what did that have to do with the collapse of northern rock?

Scrootum

CLAPTON wrote: »

what did that have to do with the collapse of northern rock?

It was fairly clear to anyone that looked closely enough, that credit was going to dry up when it came to light that much of the security and assets offered as security were worth little or nothing.

CLAPTON

Scrootum wrote: »

It was fairly clear to anyone that looked closely enough, that credit was going to dry up when it came to light that much of the security and assets offered as security were worth little or nothing.

it was pretty sudden

not sure how clear the expectation was

but no matter the referenced article didn't cover that anyway