The Bank of England has agreed to give emergency financial support to the Northern Rock, one of the UK's largest mortgage lenders, the BBC has learned.

 

Full Story http://news.bbc.co.uk/1/hi/business/6994099.stm

Sensible decision

 

The loss of a major bank / building society could trigger a financial meltdown and recession in this country so bailing them out makes sense

I'm a littled bemused to the number of customers who closed their accounts today. Surely that's just adding to the problem, well it surely can't make the situation much better :lol:

Sensible decision

 

The loss of a major bank / building society could trigger a financial meltdown and recession in this country so bailing them out makes sense

Don't go on the misleading headline, they are not being bailed out at least not yet, they are being given a loan at a penal interest rate.

tbh i dont blame people taking their savings out.... who could risk losing thousands ? although it is compounding the problem.

I'm a littled bemused to the number of customers who closed their accounts today. Surely that's just adding to the problem, well it surely can't make the situation much better :lol:

 

If it comes down to it, what is the normal member of the public going to do? Protect their savings, or leave them be in case it somehow single-handedley helps save the economy?

 

 

 

Wouldn't have minded the Bank of England giving the mortgage company I work for a bail-out, they announced 100-150 redundancies last week.

Edited September 15, 200717 yr by Shoat

this might be the thin end of the wedge, with a bigger name just round the corner

Could the probable collapse of Northern Rock be a sign of an imminent worldwide recession? Anyone here have an account with NR? Wall Street have lowered interest rates to try and stimulate the American economy today, and there will be knock on repercussions throughout world markets. Share prices have fallen worldwide too.

 

I also think this is a sign that there will be a house price slump at last soon...

 

Financial doom and gloom on the way it seems.

 

 

I don't think the Government will let Northern Rock collapse, as it will reflect badly on their financial policies of borrowing without any regard to repayment. They will prop it up regardless of how much it costs, so no I don't think it will collapse.

 

House prices on the other hand are way over valued, and will definately fall, by how much I don't know, don't think it will be as bad as late 80's early 90's, but poeople who have taken out huge mortgages in the last couple of years might see their house prices fall back below what they borrowed. People who took their mortgages out years ago should be ok, unless its a fixed rate coming to an end soon.

 

The days of house prices increasing at 30% per year could be well and truly over.

If fukkin idiots didn't get so paranoid and taking all their money out then Northern Rock and the economy would not be in danger, there was no chance of Northern Rock going bust, savers were fed paranoid rubbish by the media and if they keep taking money out then it WILL go bust and the country landing in $h!t, there is a system in place that protects savings of up to £32,000 in the event of a bank going under so ppl had nothing to worry about but mile long queues outside Northern Rock branches sends out a bloody bad signal

 

Pathetic

The problems that the Northern Rock is facing, as with BCCI before it, just proves what a total house of cards the Capitalist system actually is in reality. Some people here praise Gordon Brown and his "sound economic policies", I dont, frankly, I think we're now seeing the consequences of his rather over-rated policies and his refusal to help people out who were on Company Pension schemes was an act of utter moral cowardice... New Labour once actually had a good idea - A "Stakeholder Economic Policy", an antidote to the Tories' ruinous "boom and bust" cycle, unfortunately that fell by the wayside because, shock, gasp, it seemed a wee bit too much like Socialism :o :o ...... And it just seems like we're back to the bad old days. Homeowners are now going to see interest rates continue to rise, and quite probably a return to the "negative equity" days of the Tory administration.... Brown cannot, and should not be allowed to, wash his hands of the blame for this regardless of whether he is now PM or not...

dunno what the fuss is about, the crisis appears to be over and everythings returning to 'normal'. however i still pmsl at that t*** who sold his shares in the bank and lost 10k!!! if he had of kept calm he wouldnt have lost 1 penny! :lol: