teambwr47

Well the effects of the World wise credit squeeze is spreading even if you don't feel it yourself its likley that we all will in the future if things keep creeping the way they are..

9 NZ property reliant finance firms have failed of late with at least a few more hanging on by the skin of their teeth.

Now one of the UK's leading mortgage providers with a near 19% of the market is in trouble.....

Northern Rock seeks support

Being stated in some areas that its temporary but in others that its a long term issue......

We had an account with them for a while...not anymore thank goodness.

Turbulent times ahead me thinks......

teambwr47

If you read the link its includes a mesage to customers not to panic but if you were a person with money in the Northern Rock would you sit back and relax or get your money out ASAP.

The Bank of England press release not to panic will most likley lead to an even harder 'run on the bank'...........

Ted Logan

So if you have a mortgage with Northern Rock and they went under, does that mean you have no debt ???

Saying that, it will get eaten up by another bank

gt94sss2

No - you would still owe the money.

However, its not going to go broke - it has lots of assets etc..

The problem is more to do with future growth prospects as they rely more on the wholesale markets for funds than retail deposits than other UK banks - and these days not many people want to lend on the wholesale markets...

Regards
Sunil

shell and mark

the goverment this morning just gave 5 BILLION to the ROCK to bail them out

I WANT SOME

shell and mark

FishermansFriend

The UK roads are blocked with pensioners this morning - all headed towards the nearest Northern Rock branch waving their passbooks.

FishermansFriend

I phoned up the CEO of Northern Rock this morning and offered them a loan of £5,000. The CEO is coming round for an interview later. I have asked for his passport, bank statements for himself and the bank's and a DNA sample.

I will be charging an interest rate of 22% and unlimited access to Northern Rocks rather fit looking female staff.

On a more serious note their internet access is down (or unusably slow) this morning and people can't withdraw their 'electronic' money!!

The BBC's telling investors not to panic - Oh yeh. The BBC - financial experts LOL

Kippers

Customers queue to withdraw money from Northern Rock branches.

http://news.bbc.co.uk/2/hi/business/6994328.stm

Kippers

The Times
"Prepare for bad news: [UK] house prices are going to drop"

Britain is far more dependent on finance and related businesses than any other advanced economy. The implication is that Britain will probably suffer more than any other country, including America, from a combination of tougher lending conditions, lower bank profits and fewer jobs for highflying financiers.

http://www.timesonline.co.uk/tol/com...cle2448868.ece

FishermansFriend

LONDON, Sept 14 (Reuters) -.... queues stretched out onto the streets as customers waited to withdraw savings from Northern Rock branches, with some reports of fighting in its north-east England home town of Newcastle.




http://investing.reuters.co.uk/news/...G-UPDATE-6.XML

littleal

It's alright for you - my removal fund is sitting in their coffers (or not!)

Alison

FishermansFriend

"In the age before the last days there will be terrible times when people will talk only of the value of their houses while at their dinner parties and not of the Lord and his ways or even the terrible litter in the neighbourhood and the noise from the all night kebab shop.

"Before the last days the scoffers will come and they will say the banks are perfectly solvent and that property prices round here never go down because it is a really sought after area with good schools but yea, the scriptures say, they will find themselves deep in the shit when the balloon goes up and they can’t afford their repayments.

"On the final day the Lord will call in his loans and all will have to stand before him with their mortgage statements and those that are more than three months in arrears or £1,000 in debt on the credit cards will be cast into hell, along with all the directors of the Northern Rock and every estate agent in the land."

weebossyboots

By withdrawing all their money the folk that are panicking are the ones that are going to crash the bank! Do they not realise this!

Still, if I had any saving s I'd probably do the same!

Kippers

I don't blame people for wanting to withdraw their money.
The fault lies not with individual depositors, but all the other banks on the High Street for not supporting the system.
Runs did cause bank collapses in the past, but modern banking practices were supposed to prevent this from happening.

Banks are linked together by a common system whereby they lend to each other to help balance the books.
But many banks have made bad investments decisions, buying into US sub-prime mortgages which were bundled-up and sold on the wholesale market.
They are now worried there will be big loses in this wholesale market and they will suffer serious reversals.

So banks are running scared and they have infected their customers, not the other way round.

This particular bank also made stupid loans to borrowers, with up to 130% mortgages! (poor banking regulations)

The banking/money system is unsustainable in the long run, that's why we have these regular reversals and people go to the wall.

If you've got a spare couple of hours, this is a good primer:
http://www.feasta.org/documents/moneyecology/intro.htm

Kip

lardyl

something of a self-fulfilling prophecy there and shades of the me...me....me before the collapse of Equitable life, when one interest group essentially finished off that flagging financial company. Glad I sold my shres in the NR about a year ago and best of luck to all their customers and of course Newcastle United!