Government is now propping up the credit bubble

[brownie74]

if you have some spare cash...

there are opportunities coming - cheap debt and the housing market about to crash

surely a good time to be a cashed up renter?

[TheFaQQer]

You mean nationalise, shirley?

Exactly what I said

[sasguru]

there are opportunities coming - cheap debt and the housing market about to crash

surely a good time to be a cashed up renter?

Cheap debt will only prop up the housing market. The only way house prices will crash is if unemployment rises substantially. It actually fell last month.

[NoddY]

Boomed!

Cheap debt will only prop up the housing market. The only way house prices will crash is if unemployment rises substantially. It actually fell last month.

And inflation is low!

Only 1.8%:

http://news.bbc.co.uk/1/hi/business/7000298.stm

[sappatz]

Uk

I think they should just print some more money. That'll solve the problems.

exactly, african style. Who said UK will be the next third-world country or belong to the list of "failed states" (there wont even be the north sea oil to absorb the tears)

The government has completely underwritten NR. This precedent is dangerous. Bankers like to take big risks to make big gains, but that risk
taking is always tempered with the thought of bringing the bank down.

The bubble will now go super nova. Time to buy some more property, the BOE has underwritten all the risks.

Madness New Labour style.

the truth is that the british governement is afraid of a banking system collapse in UK (queues spreading to other lenders) since nobody wants to take over NR now apparently. They have to stabilise the situation.

remember that financial leverage work both ways. this is a dangerous game.

Anyway, the sterling is going the same way as the USD , towards the abbyss of financial devaluation.

[brownie74]

Cheap debt will only prop up the housing market. The only way house prices will crash is if unemployment rises substantially. It actually fell last month.

overall it fell but thats because of all the people coming into the country taking crap jobs. people working in financial services are going to be losing their jobs. these are the ones that own the properties i want to buy in Zone 1 + 2 of London.

[vetran]

AIUI they underwrote only existing deposits.

Nationalise Northern Rock? What would they call it the Department of National Remortgaging DNR for short? These closet commies don't understand capitalism.

[xoggoth]

I think we should get that nice Mugabe chap in to sort these things out, he understands how economies work.

[wendigo100]

I think we should get that nice Mugabe chap in to sort these things out, he understands how economies work.

The gun.

[EternalOptimist]

Government involvement in the private sector has always ended in disaster, and always will. These are the idiots who sold our gold at a low after ensuring that they forced the price even lower. Now they are gambling that all will end well with OUR money, the banks wont lend NR money, the customers wont lend NR money, but NL are prepared to underwrite it with our dosh. I just heard that Bobby Robson is stepping in to bail NR out by opening an account. Thats it, where's me matress