We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
northern rock on the news begging for cash
Comments
-
Walking up a quite high street at home about an hour ago ... 50-75 people queued up outside branch of NR!
A good old fashioned run on the bank then..... The nightmare scenario is that this happens to a couple of organisations and before you know it, no-one trusts the banks to hold their money. Systemic collapse follows.
This is why the BoE are giving NR the emergency loan facility. Not because they think NR are a great company who don't deserve to go under.
I'm noting that another lender is looking in serious trouble today - Paragon Group. A notorious 'Buy to Let' specialist lender. They depend even more than NR on the credit markets to raise finance to sell their somewhat risky financial products.
Will be interesting to see if there's a bailout for them too, in the event that they should need one.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
Paragon Group shares are taking a kicking today according to one report I saw.A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
i am no expert on this but !!!!!! you have made your mind up and no amount of discussion is ever likely to change it so why are you constantly posting about how dire the situation is, i suspect you might be on the bank role of another who is likely to make a killing on your negativity.
If you are posting please make it constructive. I havent read anything you have posted as constructive.
It's pretty tough to put a positive spin on one of the top 5 mortgage lenders running out of money unless you've sold the stock short!BobProperty wrote: »Paragon Group shares are taking a kicking today according to one report I saw.
You can watch the carnage unfold here. Great fun!0 -
i am no expert on this but !!!!!! you have made your mind up and no amount of discussion is ever likely to change it so why are you constantly posting about how dire the situation is, i suspect you might be on the bank role of another who is likely to make a killing on your negativity.
If you are posting please make it constructive. I havent read anything you have posted as constructive.
It's called 'having a discussion' and I'm telling it how I see it, as the debate rumbles on.
If that somehow upsets you, maybe it isn't a good idea to expose yourself to other people's opinions on the internet?--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
Their shares haven't been doing well recently...
Disclaimer: Any spelling mistakes or incorrect grammar is purely coincidental and in no way reflects the intelligence of the author.0 -
JohnInDebt wrote: »Their shares haven't been doing well recently...
I read a thing today reckoning that the break-up value is 424p. I'll buy some shares if they drop below about £4 I reckon.0 -
Watching Business Lunch people doing normal stuff i.e. wanting to take out small withdrawals can't get their money out online. As they can't get to their accounts online they want to take out all their money.
And there are massive queues at all branches.I'm not cynical I'm realistic
(If a link I give opens pop ups I won't know I don't use windows)0 -
"But experts say it does not mean Northern Rock, which has £113bn in assets, is in danger of going bust." off the BBC
guess its shares will take another hit when that rightmove report indicating national property prices are falling gets published on monday?
sorry for the naivety but are its assets the houses people have bought with their loans0 -
pieceoffluff wrote: »sorry for the naivety but are its assets the houses people have bought with their loans
Take a very simple model of a bank - one that takes money from depositors and lends it to people:
It has assets and liabilities.
It's assets are it's loans.
It's liabilities are the money held on deposit by savers.
If the bank goes bust, for example because too many borrowers default, the assets will be sold to repay the liabilities.
As a bank is seen as a special sort of business, the government guarantees that savers get the first £2k back in full and then 90% of the next £33,000. If the bank's assets wont cover that amount, the government will.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards