Make for good press when the government's bank is repossessing homes.
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McCoy: "Medical men are trained in logic."
Spock: "Trained? Judging from you, I would have guessed it was trial and error." -
The savings guaranteed by the Govt are cash. Cash is an asset.Originally posted by AtW View Post
The mortgages outstanding by customers are owed to the Govt and are debtors. Debtors are also assets.
Therefore the £30bln exposure equates to a £60bln increase in govt assets and I am still very prudent.
Hth,
Mr G Brown
(P.s. it's all Darling's fault anyway)Comment
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They don't have much cash deposits anymore I reckon - all those who wanted to pull it did.Originally posted by meridian View Post
The Govt also covers lots of guarantees on bonb - NR uses what appears to me a rather dodgy structure (most likely designed to avoid taxes) and they did it in a way that forced them to refinance regularly, which is why they got into problem when they could not refinance - now Govt is covering this refinancing.
If NR was really giving subprime morgages then their share of default should be the highest and since they got market share most in the last couple of years this means their customers bought assets at the peak of their price.Comment
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Isn't that what they do before hanging?Originally posted by zeitghost
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Sorry what I meant was that he has somehow avoided this going on the books, so I read.Originally posted by AtW View Post
Private Eye says:
'The proposed financing structure envisages Northern Rock raising funds from investors in the financial markets backed by a mixed pool of assets,' explains the Treasury of the proposals dreamt up by Goldman Sachs to save Northern Rock. What’s the best thing about the government’s plan for Northern Rock? Just like PFI, it lets Darling keep his debts off balance sheet!Comment
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What happened to Branson making a bid this week? Has it been rejected, or has he changed his mind?Feist - 1234. One camera, one take, no editing. Superb. How they did it
Feist - I Feel It All
Feist - The Bad In Each Other (Later With Jools Holland)Comment
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Blair
in other countries this is called nationalisation and associated socialism, communism or whatever
only in UK can the governement go along with such failings ! The blairites have ****ed this countryComment
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Just more debt to add to the billions labour have got us into so far.
"The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance." CiceroComment
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Does anybody know the market value of the government guarantee for NR? I think NR's credit rating is BBB- now...Comment
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At a share price of 101p Northern Rock's market cap is £424million.Originally posted by bored View Post
In other words, the Govt has risked £30bln of taxpayer's cash to protect depositors when they could have spent 1.5% of that and bought the company outright
Don't know the market value of the deposits guaranteed though.
AtW, looks like the debt will end up on the govt's balance sheet - citywireComment
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