Northern Rock

Note to self: If unable to discuss subject matter in an adult manner, refer to the Madeleine McCann thread or when a man dies tragically in a helicopter accident with two young children make a sick joke about a helicopter game.

:rolleyes: I'm afraid neither of those options sit comfortably with me. Each to their own though!
 
They found a human foreskin in the wheel well of the bank manager's car but a judge said the evidence was entirely circumcisional.
 
Kathy you have such an inflated ego and it would seem a fair degree of paranoia.

I and several others that are fully aware of the facts of the Northern Rock situation have demonstrated that on this topic you have acted irresponsibly and spouted some absolute rubbish. It is therefore not surprising that we have pointed it out. As BtB stated "if somebody posted on the Racing section the ill-informed piffle that I have read here, they would be laughed off the forum."

If I was as certain that anyone was continually talking rubbish on any particular topic I would point it out as I would expect others to do should I act similarly.

If you feel it is becoming a habit for some to criticise some of your comments, have you ever considered that you might be deserving of such comments. Of course discussion is to be encouraged but a worthwhile discussion, of which there are fortunately still a large number on this board, contains an exchange of views, some of which may be contrasting, and not tripe.

I, and I would imagine the others you named, have no personal feelings either positive or negative towards you, you aren't that important, Finally there is no conspiracy as far as I am aware.

Added. Warbler posted a comment that he is prepared to admit could be wrong, that is a normal and appropriate action in a discussion , neither praiseworthy nor a failing on his part, just normal.
 
I've read through this thread and I really can't find any post of Kathy's that could be considered absolute rubbish.

As for the "morons" withdrawing their life savings, why on earth would any sensible person not remove their savings from an organisation, of which they have no intimate knowledge, which was relying on the graciousness of the Bank of England to stay afloat, and move it to another institution, at little and sometimes no cost to them, with no such obvious problems.
 
As a saver and an investor I find it prudent to keep an eye on the financial market, and to see through all the spin. You would probably be surprised to hear I have shares in Northern Rock and I haven't sold one of them!
Click to expand...

So Kathy a clarification question if I may. You clearly keep a close and deeply informed eye on Financial and Equity markets. You own an asset that you knew, obviously ahead of the rest of us, would drop 40%+ in value. Yet you didn't sell.

Why?

I m a bit thick and need all the help I can get with this level of rationality.

Thanks

AC.
 
You own an asset that you knew, obviously ahead of the rest of us, would drop 40%+ in value
Click to expand...

I see no such assertion on this thread. A kinder soul may have offered some sympathy in this situation.

I really see no reason for personalising this issue. Could ye all stop the unreasonable tetchiness, please.
 
Thank you Mr Bull.
I hadn't realised you were part of the travelling community. I will make allowances in future.
 
Sorry too, Boss.

I may have misread a slight touch of self regard in Kathy's postings that may have not been there.

I will take 10 Hail Marys and 3 Our Fathers.
 
Melendez, let them do their very worst. I frequently spout rubbish and the trick is spotting it and these lot are a clever bunch, definitely no flies on them. :suspect:

With my suspicious head on :ph34r: , I think I have been "targeted"and I have a feeling in my water that my postings (no one elses) will be rubbished probably by those that think I am to blame for certain individuals leaving this forum. The sad thing is, (for them), I ain't going anywhere and the more they are rude and offensive, the more I will post about those subjects I clearly no nothing about.

They forget, I've been here before! It didn't work then, and it work now.
 
Originally posted by Melendez@Sep 18 2007, 08:46 AM
I've read through this thread and I really can't find any post of Kathy's that could be considered absolute rubbish.
Click to expand...
:what:

Look harder, Melendez! :D

While you are at it, go through some of my other threads too. I have made a point of never posting my "absolute rubbish" on just one thread. One thing it has done is liven this part of the forum up, and seems to instill a sort of community spirit amongst some of them. Great to see.

I bet the "hits" to this part of the site has risen recently too! :)
 
Anyway, back on the subject....

For anyone interested in having a look at what has been happening over the last few days in the banking sector, you may find some of this quite interesting or enlightening or just plain rubbish. It does give a much more global perspective on why some UK banks may well be struggling. Boring as it may seem to some, I find the whole subject quite enthralling.

Latest News
14 Sep 2007
BANK OF ENGLAND IN DRAMATIC INTERVENTION
The Bank of England was last night forced to hand emergency funding to one of Britain's biggest mortgage providers - Northern Rock - as it became the first major financial institution in the UK to run into serious trouble as a result of the credit crisis that has caused turmoil in world financial markets. The Bank's intervention was agreed with its governor, Mervyn King, the Chancellor, Alistair Darling, and the Financial Services Authority sources close to the situation said last night. The news is likely to lead to big sell-offs in banking stocks when the stock market opens today. Northern Rock customers were urged to stay calm.
[The Guardian page 1 - 14.09.07. Also reported in Financial Times page 1, The Daily Telegraph page 1 and Daily Mail page 2.]


14 Sep 2007SIGNS OF STABILITY RELIEVE GLOBAL MARKETS
Investors were handed some relief in the credit world on Thursday with signs that conditions could be stabilising in parts of the money markets. The cost of three-month borrowings in the interbank market fell slightly for dollar, euro and sterling instruments after soaring in recent weeks. And new data showed that the rate of contraction in the US commercial paper market was slowing. Investors were also encouraged by news that Countrywide, the giant US mortgage lender that has had trouble borrowing in the money market, had secured $12bn in additional financing from its banks. The S and P 500 closed up 0.8 per cent, while the FTSE 100 ended the day 0.91 per cent up at 6363.9 in the UK.
[Financial Times page 1 - 14.09.07.]
14 Sep 2007
HOMEBUYERS PAY PRICE FOR SOARING LIBOR
A number of mortgage lenders are pushing up interest rates for mainstream borrowers as the tightening in the credit markets starts to bite. Halifax, Abbey, and Standard Life have increased their tracker rates - variable mortgage rates linked to the Bank of England base rate - and other lenders are likely to follow suit within days. The rises are in direct response to recent turmoil in the credit markets, which has significantly increased the cost at which banks themselves can borrow. Variable mortgage rates are priced according to the short-term London interbank offered rate - the rate at which banks borrow from each other - which has shot up to a nine-year high in recent weeks.
[Financial Times page 3 - 14.09.07. Also reported in Daily Mail page 23, Daily Express page 23 and The Independent page 53.]
14 Sep 2007
UK BUSINESS LEARNS TO TIGHTEN ITS BELT
British business may have to engage in the commercial equivalent of rummaging behind the sofa for lost coins as the crisis in the money markets makes it harder to borrow money. Events this summer are curtailing the generous credit that UK businesses and consumers have enjoyed over the past four years. The banking sector's capacity to lend is under pressure because a crisis of confidence in the wholesale markets has made it costlier for them to raise capital. Meanwhile, the balance sheets of some lenders are clogged up with debt to private equity companies - debt that these banks had hoped to sell on to institutional investors.
[Financial Times page 3 - 14.09.07.]
14 Sep 2007
BRITISH BANKS SCOOP UP ECB CASHUK
banks have emerged as keen bidders for emergency cash from the European Central Bank as they grapple with home-market liquidity restrictions given the Bank of England's refusal to do more than offer overnight funds to commercial banks. The FT's sister paper FT Deutschland has learned that eurozone subsidiaries of British banks have been participating in the ECB's longer-term lending to commercial banks.
[Financial Times page 6 - 14.09.07.]
13 Sep 2007
ECB LOANS BANKS FURTHER
€75BN The European Central Bank on Wednesday loaned commercial banks €75bn ($104bn) for three months, a sign that institutions in the money market remain wary of lending to each other for periods of more than a week. The Frankfurt-based central bank said 140 banks had applied for €139bn in central bank deposits, agreeing to pay an average interest rate of 4.52 per cent as compared with current interbank prices of 4.75 per cent. The size of the refinancing operation shows how worried commercial banks remain that the crisis in the US mortgage market could yet render fellow institutions in the money market unable to repay loans.
[Financial Times page 9 - 13.9.07.]
13 Sep 2007
PUBLIC SECTOR PAY RISES SLOW
Public sector pay is rising at the slowest rate for almost a decade while almost 80,000 jobs have been axed since June 2005, according to official figures published on Wednesday. The findings will provide further ammunition for public sector unions threatening widespread industrial action over pay and jobs. Annual earnings across the economy as a whole, rose by an average of 3.5 per cent during the three months to the end of July according to the Office for National Statistics. This was slightly higher than expected but still well below levels likely to trigger alarm at the Bank of England. Pay rates however are rising at a much faster rate in the private sector.
[Financial Times page 3 - 13.9.07]
13 Sep 2007
CRUNCH SERVES HOMEOWNERS WHO LIKE FIXED-RATE
The credit crunch may be a disaster for bonus-watching bankers, but recently it has served homeowners who like the security of a fixed-rate mortgage deal rather well. Swap rates, the money market rates that determine the cost of fixed-rate borrowing, depend largely on what the market thinks will happen to base rates. Before the turmoil, there was talk interest rates could rise to 6.25 per cent. True to form, swap rates, and therefore the price of fixed-rate loans, were high. Yet as the markets churned, the Bank of England’s Monetary Policy Committee became reluctant to increase base rates for a sixth time in just over a year.
[The Times page 16 - 13.9.07. Also reported in The Independent page 48, Daily Mail page 1 and The Guardian page 3.]
13 Sep 2007
BARCLAYS EURO FUND SHRUGS OFF TURMOIL
Barclays Private Equity has weathered the current market turmoil and the sharp criticisms levelled at the industry to close its third European fund with commitments of \u20AC2.4bn (£1.6bn). The firm said the liquidity crisis and frozen debt markets had had almost no effect on its ability to carry out deals. The money was raised from 25 existing investor groups in Europe, the Gulf, Asia and the US, including funds managed by Standard Life Investments, Morley Fund Management, Allianz Private Equity Partners and SVG Advisers. Barclays Capital also contributed \u20AC650m. All are investors within the firm's two previous funds, meaning it did not have to market its current offering to outside investors.
[The Daily Telegraph Business page 5 - 13.9.07]
13 Sep 2007
HOUSE PRICES FALLING BUT UNEMPLOYMENT DOWN
Unemployment in Britain fell to its lowest level in two years in August as wages grew strongly with Britain's economy continuing to show its resilience. But the news from the housing market was more mixed, with figures suggesting a slowdown in most parts of Britain excluding London. Figures from the Office for National Statistics showed the number of people claiming benefits declined by 4,200 to 852,900, in August leaving the unemployment rate at 2.6 per cent, its lowest since April 2005. The International Labour Organisation, which counts the number of people out of work and actively seeking employment, put the jobless total at 1.649 million, down 28,000 in the three months to July compared to the same period in 2006.
[The Independent page 49 - 13.9.07. Also reported in Daily Mail page 49, The Daily Telegraph Business page 3, The Times page 2 and Financial Times page 2.]
 
My large, over inflated ego dictates I type nothing less than "absolute rubbish" if you don't mind, Melendez.
 
Despite reassurances from the government to savers that their money in NR are safe, shares in NR continue to plummet.
 
Bailing out a profligate and badly managed bank for political reasons sends precisely the wrong signal to every other bank operating in this country. But it's exactly what I'd expect of Gordon.

Now every bank knows it can continue to act irresponsibly because Gordon will rescue it and its customers from its/their own folly, to try to salvage his own reputation for 'economic management'. It's about on a par with selling the country's gold reserves at the very bottom of the market, to prop up the fledgling Euro, which cost us several billion.

This whole debacle has had a terrible effect on confidence in the financial and banking industries, which are possibly the main foreign currency earners for this country now. The ordinary saver has lost confidence in the probity of the high street bank. The economists have lost confidence in the Govt to allow the market to make its own corrections. Bummer all round.
 
I don't think the reasons are political.

It's something that had to be done in the circumstances. Any government would have done it.

The BoE is criticised for not intervening in the first place and then when it does it's criticised for being too slow. Yet the nett result is that a potentially disastrous situation - for the bank rather than its savers - has been stabilised. NR isn't in the clear by a long way but savers' money is still 100% safe - always has been, always will be. The same can't be said for its shareholders but shares are a form of gambling and I have no more sympathy for anyone who's lost money than I would for anyone who makes a losing bet on the horses or puggies.
 
HMG is not guaranteeing the shares. They are falling because NR will make far less profit than it did before.
 
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