Contractor Financials

[Moscow Mule]

They say:



Sounds quite good to me...

P

If you like the idea of instant negative equity.

[Moscow Mule]

I wonder how NR got into credit difficulties?

Lack of liquidity in the interbank credit market?

[Bagpuss]

Lack of liquidity in the interbank credit market?

No it's the way I'm stood

[alreadypacked]

I thought that was half of the currrent problem with the mortgage market in general? Banks and building societies have sold mortgages on but only for a short term eg 5 years, those buyers are now coming back expecting the banks to buy those mortgages back and very few are willing to rebuy the debt and take on the risk

I think the problem is Banks and building societies have sold mortgages on to brokers who have sold them to other brokers but only for a short term eg 5 years, those buyers are now coming back expecting the brokers to buy those mortgages back and very few are willing to rebuy the debt and take on the risk.

For brokers read some investment ****** with large bonus.

Northern Rock problems happened when they could not off load anymore old mortgages to get money to fund new mortgages.

[_V_]

I think the problem is Banks and building societies have sold mortgages on to brokers who have sold them to other brokers but only for a short term eg 5 years, those buyers are now coming back expecting the brokers to buy those mortgages back and very few are willing to rebuy the debt and take on the risk.

For brokers read some investment ****** with large bonus.

Northern Rock problems happened when they could not off load anymore old mortgages to get money to fund new mortgages.

Also known as buying a pig in a poke.