"“We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried.” "

Chinese premier Wen Jiabao 12th March 2009

""We have a financial system that is run by private shareholders, managed by private institutions, and we'd like to do our best to preserve that system."

Timothy Geithner US Secretary of the Treasury, previously President of the Federal Reserve Bank of New York.1/3/2009

Tuesday, December 11, 2007

Northern Wreck Nationalisation looms.

"Tories oppose nationalising Rock" is the headline of the BBC ONline report....but this is what The Boy David said on BBC Radio 4's "Today" program..

"I don't support nationalisation,"

"I don't think it would be right for the government to spend even more taxpayers' money nationalising a bank and suddenly becoming responsible for £100bn of mortgage lending.

"What I want is a private sale, but I suspect that the government is running out of time and running out of money and it may well be that they have to go down the path of nationalising.

"If it does, it will be a monumental failure."

Which inevitably looms (and the Boy David knows it) as the prospects of a "private" sale = i.e transfer a loan of public funds of at least 20 Billion pounds into different private hands - with little prospect of it ever being repaid and no sanctions if it isn't.

Vincent Cable has been consistent and persistent... natyionalisation is the least bad policy landed in our laps by the frightened and pusillanimous trio of the Bank / Treasury and the FSA in September

As Vincent Cable (the regrettably temporary Lib Dem leader) says "At the moment it's (Northern Wreck) bleeding to death - approximately £3bn two weeks ago and £1.5bn last week had to be put in additionally.

"Once the bank is under temporary public ownership - I stress it's temporary, not a permanent solution - it enables the banks to be reassured who are lending that there's an absolute sovereign guarantee, and it provides a period of stability."

Let's get the legislation passed before Christmas - if it is . Vincent deserves and earldom and half of Sussex....then we start hanging the guilty.


Stef said...

As a slight aside, given the nature of the some of the catastrophes that appear to be just around the corner, Vinny boy does seem to be a very well qualified man for our times, so does anyone actually know why he didn't stand for the Lib Dem leadership?

Too many knives with his fingerprints on in the back of previous leaders and leadership candidates?

Anonymous said...

RAB Capital, the hedge fund that is Northern Rock’s second-largest shareholder, issued a surprise profit warning yesterday as a slump in the value of its equity investments looked set to wipe out growth in performance fees.

Anonymous said...

From Mish:-

"Failsafe Prediction

I have a failsafe prediction: Several hedge funds are going to get carted out on a stretcher all at once and cause a cascade of defaults. Many hedges are in place that are based on other counterparty hedges paying off in the event of "an event". When "the" event comes, those hedges will prove to be worthless."

(C) Very Seriously Disorganised Criminals 2002/3/4/5/6/7/8/9 - copy anything you wish