Thursday, February 21, 2008

Northern Crock - What Exactly Is Going On?

There's a fascinating discussion going on over at Housepricecrash Forum on the subject of the nationalisation of all the crap in Northern Rock's balance sheet, whilst most of anything that's worth anything has already been spoken for by a...

"not incompetent cartel of banks making a killing from the whole thing"

The discussion starts off with a summary of the Northern Rock scam and then, if you have a financial turn of mind, gets funnier and funnier as one of the commentators goes off and roots around the financial statements of a series of mortally wounded banks and returns to the forum with a list of dodgy securitisation vehicles used by each of those banks to fuck you and me

Remember, boys and girls, no-one in the banks, regulators or government saw a banking crisis coming; it's the Hidden Hand of the market at work and no-one is to blame

Non-conspiracy theorists - I shit on them



lwtc247 said...

Beeb quote: "The government is hoping it can get the legislation on to the statute book by the end of Thursday."

Now, anyone such as myself who reads reports of US bills knows full well that rushed leglisaltion almost ALWAYS has seriously bad consequences (not to small cadres however, but to the masses - shocking as that may be !)

Fruitcakes such as myself begin to think this is WHY leglisaltion is rushed through.

Why oh why oh why do I get the feeling this will be no different?

lwtc247 said...

decoding the terminlobboxology:

Structure: Pleasantized word for fraud whereby money normally destined to the taxman can be kept in private hands, and to which thoise in the know take a shine to 'investing' in

lwtc247 said...

I spend significant amounts of time abroad. I can imagine other foreign governments salivating at the prospect of doing this quad money hole scam.

Nicely avoids the physical aspects of 1929 by the great unwashed if you know what I mean.

NeoEconomics? Absolument mon ami.

P.S. where's all the other respected fruitcakes?

lwtc247 said...

"The Commons rejected peers' amendments calling for an independent audit of the bank and for it to come under Freedom of Information laws. "


Eastenders - eat your heart out.

{one way convo's are weird}

Stef said...

where's all the other respected fruitcakes?

I'm here

Stef said...

{one way convo's are weird}

so says a regular blogger ;)

lwtc247 said...

I'm here -

:D for which I am entirely grateful.

lwtc247 said...

"The bill to allow Northern Rock bank to be nationalised has become law after peers backed down in their demands for extra safeguards. "

Cheers Peers!

Q: Whats green red and stinks to high heaven? Why the houses of parliment of course!

lwtc247 said...

Can someone please tell me what benefit will be gained by nationalisation?

errrm.... gained by us that is, the civvies - not the scandle clad classes!

What is so different cum better now?


Stef said...

I was hoping that someone on breakfast television would explain that to me today

Instead we were treated on all channels to alternating coverage of serial killers and Bruce Forsythe

The fact that we now live in the kind of country where the banks are nationalised but water, schools and hospitals are privately owned doesn't seem to bother anyone very much at all

Anonymous said...

Doesnt this boil down to the point that Brown and Darling sold the state aid of Northern Rock entirely on the principle that it had a sound business model and a good asset book. This is clearly complete balls, their asset book is sub-prime and anything of value has been disappeared to an offshore trust. The question is, did the government know this, because if they did what they have committed is a fraud on the scale of Enron. If they didn't know this then why the hell not? What was the £200 million in advisors fees spent on?

Alex Fear said...

I read a little news item some weeks ago but I can't find it now. The Wreck apparently sold the mortgage debt for it's top borrowers (those that don't borrow ridiculously and have a good history of paying back) to pay back some of the loan given by the government.

Obviously this wasn't front page news but should have been.

It's like a fisherman selling his nets to pay off some of his debts and now having to scoop up fish by hand. It's going down, tax-payers are damned if we do, damned if we don't. However, I'd rather the gov screw the shareholders and Beardie than let the private sector once again profit from it's huge stupidity.

Think of the shareholders, those poor shareholders with mouths to feed!