Northern Rock on shaky foundations

[notaslave]

Spooked Northern Rock customers are queuing outside branches after the mortgage lender confirmed it was bailed out by the Bank of England.
Earlier, chief executive Adam Applegarth said the emergency funding - a result of the worldwide credit crunch - was as yet untouched.
He denied that customers' accounts had been frozen, adding that it is "business as normal" for the Newcastle-based firm.
The company's website crashed overnight as customers logged on for more information. The lender holds deposits of £24 billion from 1.5 million savers and lends to 800,000 homeowners.



not so long ago Barclays went cap in hand to Bank of England too.

[beetzart]

Prehaps it might be coming home to roost. I read about this story today and the one thing that was not mentioned was the dreaded words for the banks 'a run on the bank'. There was various quotes from 'experts' about how it wasn't really that serious etc, but they have to say that don't they? The whole system is a very clever confidence trick and as soon as that is lost the house comes tumbling down.

This wouldn't happen with full reserve banking. I have roughly worked out from the above figures that Northern Rock have lent out in mortgages roughly 4 times what they hold on deposit if the average house price is £120000. This isn't taking into account Personal Loans etc.

It's incredible how much power people could actually wield. There is no way these lenders could deal with mass defaults say numbering hundreds of thousands.

[notaslave]

I agree, if there was a mass run on the bank they would shut up shop and give the punters a chance to calm down.

Some years ago I was involved in a share scheme thing where a small business had gone bust because of his bank and was trying to exact revenge/change policy. He bought shares in the English bank (cant remember which one) and was giving away one share to sympathisers so they could help change things at the banks AGM.

I said years ago the way to put to stop to stupid bank charges and this "it takes a week for a cheque to clear" nonsense is to collectively close accounts at one bank and threaten to do it to others banks, they would soon either a) SHOOT US or b) stop the high charges, silly practices.

[beetzart]

The banks are a cartel, we all know that. Most of us have no choice over using a bank for our salary etc so we are forced into an agreement that allows a commercial enterprise to generate upto nine times what we deposit, as loans, which produces billions in interest payments, of which we recieve a penny or two in return on a few hundred quid. And yet they have the audacity to say we should be grateful for 'them' offering us 'free banking'.

People need to wake up to this fact because to quote Orwell we would be like a Shire Horse flicking flies off its back with its tail.

[mcmenek1]

Hi,

This looks like it could be the start of the manipulated financial crash of the UK economy.......this will involve crashing the housing market......which in turn will devalue the pound against the Euro......the pound has already dropped in value against the Euro as a result of this...... see this post:

http://www.davidicke.com/forum/showpost.php?p=118465&postcount=34

http://newsvote.bbc.co.uk/1/hi/business/6994528.stm

Love
&
Peace

[beetzart]

There was more about this story in todays papers. I reckon Northern Rock are being used to test the water say as they are only small compared to the big four or five banks. Seeing pictures of despositers queing outside branchs for their money reminded me of images of US banks around the depression.

Surely this is all engineered for a purpose? Even though this system is designed to enrich the few and enslave the many I doubt very much they have cocked it up, unless they have got too greedy.

It's similar to how Edward Griffin described a crash in his book The Creature from Jekyll Island.

[pedsi]

not so long ago Barclays went cap in hand to Bank of England too.

Thats right...I thought I heard about that last week,strange how on the news last night they kept mentioning this was the first time a bank has had to approach the bank of england for such a loan???

[beetzart]

Thats right...I thought I heard about that last week,strange how on the news last night they kept mentioning this was the first time a bank has had to approach the bank of england for such a loan???

I remember hearing that to!

[john white]

It's certainly got the sleepful riled up

http://img212.imageshack.us/img212/6829/bankcollapseih1.jpg (http://imageshack.us)

[turtonlea]

The BBC was one of the few news Agency to give this very important story any light of day. Today if you have an urgent story that would have an effect upon the nation, try getting a New Agency to publish any story that does not fit into their agenda's. Good Luck.


BBC link to Barclay's Banks Credit flow problems as of 31st August, 2007. -:

http://news.bbc.co.uk/1/hi/business/6971731.stm

It's a bit like the rape charges brought against President Bush, the Lady who successfully filed charges against Bush in Texas . The local newspapers reported the details of this massive story she was interviewed by a local Journalist and her mental condition was believed by all to be sound. Then after all the Presidents men rush to cover up the story, the big News Agency reported the women to be a Nut Case, the story along with all concerned was buried.