tag:blogger.com,1999:blog-2948538160252327076.post500307029818481797..comments2023-11-02T15:48:50.381+00:00Comments on UK Bubble UK Economy: Money is no object for the bank of englandAlice Cookhttp://www.blogger.com/profile/05753570123987780947noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2948538160252327076.post-28121478615812891652007-11-21T08:53:00.000+00:002007-11-21T08:53:00.000+00:00Wonder why Brown and Darling are prepared to put i...Wonder why Brown and Darling are prepared to put in £25 billion to keep NR going when the same government could not rescue Rover or Cammell Laird etc...<BR/>Well I can only guess it is because they want the fickle UK economy to continue a bit longer ?<BR/>The whole of the UK economy is based on borrowed money riding the back of crazy house prices - simple as that.<BR/>It annoys me when people say we are the Worlds 4th largest economy... well it certainly is not because we are a massive exporter is it... it is all froth and bubble - at least now some people are at last begininnig to realiase that the gravy train has finally hit the buffers !Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-23061675452894238772007-11-18T20:32:00.000+00:002007-11-18T20:32:00.000+00:00The US had a nasty experience about 15 years ago w...The US had a nasty experience about 15 years ago with Savings and Loan banks (basically local mortgage companies). Hundreds of them went bad after they gambled on interest rates.<BR/><BR/>Initially, the US authorities tried to keep them going through mergers. However, this strategy failed and then the authorities got ruthless. As soon as a S and L went bad, the authorities would come in and close em down. There were many cases of the supervisors coming into a bank on a friday evening and having closed it down by monday morning.<BR/><BR/>Ironically, this meant that the US became the world leaders on bank resolution procedures. Once the S and L crisis was over, many of these guys retired. Even today, you will find these guys acting as experts in bank resolution procedures in many emerging markets.<BR/><BR/>The key lesson was straightforward; if a bank is in trouble, close it as soon as possible.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-67011309783507679322007-11-18T20:08:00.000+00:002007-11-18T20:08:00.000+00:00What exactly is the BoE trying to do here? In the...What exactly is the BoE trying to do here? In the US the FDIC would have closed NR by now by either selling it to solvent bank or just paying off depositors from the insurance pool.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-67903310082477219632007-11-18T19:17:00.000+00:002007-11-18T19:17:00.000+00:00This whole northern rock business is a scandal. T...This whole northern rock business is a scandal. The government can find billions to protect depositors and shareholders while pensioners get scammed with collaping share schemes.Anonymousnoreply@blogger.com