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economic situation is dire


ianrobo1

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They've nationalised the debts and privatised the profits!

Sorry, who nationalised the banking sector debts? Was it Mr Cameron or Mr Brown?

Who privatised the profits (to a group that is run by a big supporter of the Tory party in the last election?)

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They've nationalised the debts and privatised the profits!

Sorry, who nationalised the banking sector debts? Was it Mr Cameron or Mr Brown?

Who privatised the profits (to a group that is run by a big supporter of the Tory party in the last election?)

you'd expect him to buy the unprofitable part worth £-21bn?

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What a dreadful batch of puns.

Typical. You see a chance to be the first in with a cheap joke, and you baguette.

:crylaugh:

I've got to say folks, after a heavy week, you have made me laugh so loud, and in the thread where I would least expect to get mirth from.

Thanks :cheers:

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They've nationalised the debts and privatised the profits!

Sorry, who nationalised the banking sector debts? Was it Mr Cameron or Mr Brown?

Its the Privatization of the profits which is the point. Northern Rock would of probably gone under.

Northern Rock should have gone under, but unless you think that government should retain public ownership of the bank (which it wasn't allowed to do after 2013) then the taxpayer was always going to make a loss on the bailout. As Kid says, what private investor is going to buy the big bag of toxic J Arthur Rank that the rest of NR represents?

The broader issue is governments use of our cash to desperately try and prop an unsustainable but highly profitable system. Those 'profits' however were illusory, the 'wealth' created by ever more complex debt instruments wasn't real. Not letting that situation naturally correct through failure has led us to the edge of a sovereign debt shit storm.

We have a malign combination of bankers doing what comes naturally in an overly liberal environment and government with crazy expectation of sustainable growth based on reckless consumer spending. The system is broken and once enough people shed their denial and start to understand that there's going to be financial carnage.

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Norther Rock should of gone under- Tell that to the 100 000 people who had there life savings in there.

nice one.

ohhh Benton...!

You are aware that personal savings in banks up to a certain level are protected by government, aren't you? It was not beyond the wit of man to come up with a scheme that protected savers while simultaneously allowing insolvent banks to go to the wall - taking their gambling debts with them.

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Norther Rock should of gone under- Tell that to the 100 000 people who had there life savings in there.

nice one.

ohhh Benton...!

As AWOL says savings up to a certain level were protected, at the time of Northern Rock anyone with personal savings up to £50'000 would Rock have got their money back had the Rock closed.

How many people had personal savings in excess of that figure with Northern Rock? I'd imagine a very small number if any at all. The government could always have extended the guarantee amount for Northern Rock customers.

More of a concern though than the savings issue was the jobs and the mortgage debt. At that time it is unlikely that a lot of the mortgages held by the Rock would have been taken on by other banks leaving home owners in a world of trouble.

In addition there was the belief at the time that 'saving the Rock' could avert a wider crises and similar runs on savings with lines outside all UK banks which would have been a disaster.

Hindsight tells us that the former governments solution to Northern Rock certainly didn't avert further crisis and they were perhaps naive to think it would but it did stop the run on UK savings.

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£ 50 000

If Norther Rock would of gone bust, this would of had massive impacts on the rest of the economy, in terms of assets, individuals savings and market confidence.

6 000 people would of been made unemployed.

And if DARLING would not have stepped in it would have been a lot worse = FACT!

"under the measures unveiled by Mr Darling, Northern Rock savers would not lose a penny, regardless of how much they had deposited"

http://news.bbc.co.uk/1/hi/business/6994746.stm

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Northern Rock should have gone under, but unless you think that government should retain public ownership of the bank (which it wasn't allowed to do after 2013) then the taxpayer was always going to make a loss on the bailout. As Kid says, what private investor is going to buy the big bag of toxic J Arthur Rank that the rest of NR represents?

The broader issue is governments use of our cash to desperately try and prop an unsustainable but highly profitable system. Those 'profits' however were illusory, the 'wealth' created by ever more complex debt instruments wasn't real. Not letting that situation naturally correct through failure has led us to the edge of a sovereign debt shit storm.

We have a malign combination of bankers doing what comes naturally in an overly liberal environment and government with crazy expectation of sustainable growth based on reckless consumer spending. The system is broken and once enough people shed their denial and start to understand that there's going to be financial carnage.

Spot on. And so succinct.

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