This crock will be broken up - people are only now coming off their low interest rates fixed for first 2 years, so noone really knows how many people who took morgage from Northern Crock will default after paying full current rate - without knowing true risk profile and knowing that it is probably a lot worse than it seems now only crazy would take over this company.
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Thus showing your total and utter naivety about business issues.Originally posted by AtW View PostHard Brexit now!
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The only way it can work otherwise if Govt uses taxpayer money to smooth the transaction - but they won't guarantee it for a long period of time, in fact according to the Guardian there is a set date - Feb 2008 by which the Crock will either be sold or wound down.Originally posted by sasguru View Post
There was interesting information on BBC a few days ago - turns out 70% of repos come from subprime borrowers who in total account only for less than 10% of the market, so probability of default there is much higher than normally. The question here is whether the Crock has got more of those borrowers than on average, my guess would be that this is the case but noone can say for sure right now because people are only starting to come off cheap rates so defaults have not yet reached their peak.
I think 2009 will be the year when crap really hits the fan - Brown will regret he did not call election this year.Comment
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