NORTHERN ROCK CRISIS * Bank needed £1.6 Billion from Bank of England to stay afloat * Had been financing lending by borrowing on credit markets * Fears about exposure to bad loans in the US dried up credit * US economy expected to slow as bad loans hit housing market * Uncertain how much exposure other banks have to bad debt Northern Rock besieged by savers ~~~ Many people are lining up to get their money out of the banks... How does it end?
Knock Knock... Who's there? Not northern rock. More bad jokes to come - as for northern rock, unlucky. I'd never heard of them until the 'crisis'.
The situation is a joke. The newspapers are whipping up a frenzy, and the people who are too stupid to think for themselves think that they need to withdraw all their money, which further adds to the cycle of everyone else trying to withdraw. I walked by a huge queue outside the bank, and I was laughing at all these suckers queuing in the rain for hours
CDO's (collateralized debt obligations) are not a joke, unless your one of the brilliant 'criminals' who legally walks away with millions in profits. "So if you follow the bouncing ball, borrowed money bought borrowed money. And then because they had the blessing of credit-ratings agencies relying on mathematical models suggesting that they would rarely default, these CDOs were in turn used as collateral to do more borrowing." "Turning $1 into $20..."... -source: Are we headed for an epic bear market? "The credit bubble is just starting to unwind, a credit-derivative insider says. And while U.S. borrowers are being blamed for the mess, they were really just pawns in a global game." ~~~ (if you pay attention) It's all over the major-media news nowdays This time the sky really is falling Are you prepared? I'm not ~~~ In the event of an actual emergency...