UK: Bank of England Provides Emergency Funding to Large Mortgage Company
September 14th, 2007Panic? Why would anyone panic? I mean, I always associate the phrase, “emergency financial support” with smooth sailing and total confidence.
Who do these pricks think they’re kidding?
Via: BBC:
The Bank of England has agreed to give emergency financial support to the Northern Rock, one of the UK’s largest mortgage lenders, the BBC has learned.
However this does not mean that the bank is in danger of going bust, Business Editor Robert Peston says.
There was no reason for people with Northern Rock savings accounts to panic, he added.
The bank has struggled to raise money to finance its lending ever since money markets seized up over the summer.
Research Credit: LM
Posted in Economy | Top Of Page
Maybe I’m wrong – I usually am on these things, but I see the following article on Australia’s economy as being somehow related, as in you could replace “UK” in the article with “Australia” in a few days/weeks/months…
http://www.news.com.au/heraldsun/story/0,21985,22413792-664,00.html
“Australian banks’ exposure to the crisis in US sub-prime mortgage loans was low and the direct impact on Australia of the credit crunch in global markets had been modest, though the situation needed “vigilant” monitoring, it said.”
If it needs “vigilant” monitoring, then how low was the impact really? The writer mentions “direct impact” – how about indirect impact?
“The IMF praised Australian authorities for macroeconomic management which it said was “widely recognised as being at the forefront of international best practice”.”
…
“Federal Treasurer Peter Costello welcomed the IMF’s remarks as a pat on the back, telling parliament, “that’s not me (saying that), that’s not the prime minister, that’s not the Liberal Party, that is the IMF which describes Australia’s economic management as best practice”.”
I guess it wouldn’t be in the IMF’s interests to set up a healthy economy for a fall by encouraging suicidal practices and therefore have to give that country’s government a nice beg interest-bearing loan to get out of the shit, would it?