Working Lunch...

[Bainn]

I do love watching this, especially today's explanation of "Northern Rock's" situation by the medium of a magic trick.

Class.

[thediceman]

I heard on the radio yesterday that the BoE are bankrolling Northern Rock to the tune of £780 per person in the UK.

Let them sink and give me a £780 discount on my council tax instead

[Ironside]

I heard on the radio yesterday that the BoE are bankrolling Northern Rock to the tune of £780 per person in the UK.

Let them sink and give me a £780 discount on my council tax instead

miss information

they are lending them that money

not giving it too them

so that they can fund all the morgages they have on there books which even if the housing market crashed they would still be healthy

the northern rock cant get loans from other banks to replace ones that are running out because no one knows who is going to own them tomorrow/next week/next month

[TightEnd]

If they sink then the knock on effects will dwarf the positve effects of a discount on your council tax


Hence the current government/BOE guarantee on their loans

[Bongo]

They're making money from their loan to NR though...

[thediceman]

Indeed you are all correct and I am fully aware that the BoE has in fact provided NR with a loan to which they will be charging interest also know that if a major banking company does collapse it would have a knock on effect and financial implications to us all.

Wow, one flippant remark and you get an economics lecture. Had enough of those when I did economics at uni. 

Guess the written word is not the best format for sarcism.

[Ironside]

sorry dice

the reason there was a run on the bank in the first place was due to the over exaggerated stories run in the tabloids

man in streets reads "bank needs EMERGANCY loan"
man in street oops my £500 ain't safe i better get it out
next man in street sees man in street doing it and soon everyones doing it

just wished i bought some shares in NR when they were at there low