Northern Rock Nationalised!

[andrewb]

Right, first off you can't judge the economy based on stories from your own industries. Though businesses in your various careers might be failing it's generally a bad guide of a country-wide trend. Just to try and illustrate that the economy certainly isn't in recession I've got the FTSE 100 here, which is based on how well the top 100 UK businesses are doing in the stock market.



This is how the FTSE 100 has performed for the past 5 years. Admittedly it is beginning to level out, but beyond that for the past 5 years there has been almost unparalleled growth. Furthermore, even during periods of growth there have been dips like we've been seeing recently. To have a recession you, by definition, need to have a consistent stock market drop for two quarters (six months).



This is the FTSE 100 for the past 3 months. The massive drop is when the tail end of the Northern Rock crisis occurred, you can see the first drop earlier in the 5-year graph. I think we can all agree that this does not display a consistent and determined downward drop - and this is just half of what is needed to define a recession.

If someone can correct me on this then please do, because I cannot see how anyone is prophesising a nationwide economic disaster.

[Bonnyboy]

Probably a bit out of my depth here Cyfr ( well out of my depth ) but if there was a recession looming would it not hit the small companies first. Their trade would most likely pass on to the larger companies who are more able to absorb any downturn in the economy ?

[cashman]

cyfr you have it well over me with graphs etc, n as for figures,ya can prove owt wi them, i sincerly hope you are correct n i am wrong, but if me arm were twisted to put money on it, you know were me bet would stand.

[andrewb]

Is this an inkling you have or do you have any evidence in mind (other than US Sub-prime mortgages of course)?

[cashman]

Originally Posted by Cyfr

Is this an inkling you have or do you have any evidence in mind (other than US Sub-prime mortgages of course)?

well the us dont look too rosy,but all i do is read various things in the media,talk to buisness people i know,and form me own opinion, nothin fancy just common sense, aint always right, but neither are the financiers. so ya could class it as an inkling i suppose.

[andrewb]

Fair enough, you're completely entitled to your own opinion, along with everyone else.

[Mancie]

Yep nice graphics Cyfr... 11yrs of a bad Labour Goverment and still no deep recession, unlike the years of appauling miss-management of the economy under the Tories that caused two major recessions..unbeliveable inflation/home repossesions/unemployment on a rate unknown since the 30's/higher crime rates/selling national assest for pennies/riots/..all good stuff eh?.. ah the good old days!
The Consevatives attitude to the nationization of Northern Rock only shows them up for what they are really about...I don't suppose any of the Tory fat cat landowners or bonus rich company directors have held their savings in such a "working class" bank ... if it had been Lloyds of London you can be sure the Tories would have bailed them out, are you saying that ordinary peoples savings should be wiped out?
Typical Tory!

[Mancie]

Just to add, its strange how silent David Cameron has been on this ..the old guard, old women, blue rinse, Norman Tebbit, jam selling, farmers wives brigade, are waiting in the wings.. eager for power.. the god given right of every Tory over the last 200 years

[andrewb]

Originally Posted by Mancie

Yep nice graphics Cyfr... 11yrs of a bad Labour Goverment and still no deep recession, unlike the years of appauling miss-management of the economy under the Tories that caused two major recessions..unbeliveable inflation/home repossesions/unemployment on a rate unknown since the 30's/higher crime rates/selling national assest for pennies/riots/..all good stuff eh?.. ah the good old days!
The Consevatives attitude to the nationization of Northern Rock only shows them up for what they are really about...I don't suppose any of the Tory fat cat landowners or bonus rich company directors have held their savings in such a "working class" bank ... if it had been Lloyds of London you can be sure the Tories would have bailed them out, are you saying that ordinary peoples savings should be wiped out?
Typical Tory!

So you think Labour would have had it so easy if the Tories hadn't have had the balls to sort our economy out in the 80's/90's? We're living off the same back of what Thatcher and Major built.

[entwisi]

Originally Posted by Acrylic-bob

BBC NEWS | Business | Barclays profits slip to £7.08bn

Does this sound like good news??????

Dammed if we do dammed if we don't

I recall last time Barclays profits were announced and we( I work for them ) were roundly slated for making such obscene amounts of money. Now we don't and suddenly it's repossesion city!

IMHO we aren't heading for recession but I do think that house prices are looking a bit too high. now as they fall we all start shouting negative equity but that only affects those who have to sell/move or those who borrowed beyond their means in teh first place.

[jaysay]

Just thought I'd drag this up again. It seems the Bank of England have paid of the half billion pounds Norther Rock are in the red, not only that but the Government have also injected another £3 billion into this nationalisd bank to keep it afloat, well I'm sinking fast will you please bail me out Alistaire, Darling, and I'm sure there are quite a few on here who would't mind a leg up too

[Eric]

Originally Posted by andrewb

I'm sure somebody said the UK had a good financial sector earlier in the thread. We're a world leader, its about the only thing we can truly say we're a world leader in.

That .... and suet.

I don't think that Canada is going to join in this latest recession .... we are too busy getting ready for hockey, and altho' we are losing a few jobs as GM cuts back on producing the gas guzzlers made at plants in Oshawa, most of our ecoonomy, particularly the resource sectors, remains strong.

[Mancie]

Originally Posted by jaysay

Just thought I'd drag this up again. It seems the Bank of England have paid of the half billion pounds Norther Rock are in the red, not only that but the Government have also injected another £3 billion into this nationalisd bank to keep it afloat, well I'm sinking fast will you please bail me out Alistaire, Darling, and I'm sure there are quite a few on here who would't mind a leg up too

It's obvious that you did not invest money/savings in Northern Rock bank...but you seem desperate to wreck the lives of people who do have thier money involved... is this a new Tory strategy?.. no.. i'ts the same old "the strong will survive" tactics..shame on you and your like!

[Royboy39]

Originally Posted by Mancie

are you saying that ordinary peoples savings should be wiped out?

They were when Brown got his sticky fingers on pensions.
Rant and rave all you like Gumshoe, but get real.

[andrewb]

Originally Posted by Mancie

It's obvious that you did not invest money/savings in Northern Rock bank...but you seem desperate to wreck the lives of people who do have thier money involved... is this a new Tory strategy?.. no.. i'ts the same old "the strong will survive" tactics..shame on you and your like!

The private sector offered to bail Northern Rock out. Instead Browns indecisiveness left no option open but to nationalise to save customers from losing their money as the bank would have collapsed. The huge burden of debt is now on the British taxpayer, who are already struggling. Its being managed by the state, no doubt with Gordon's famous tinkering, and losing more and more taxpayers money every day.

Its a shame we can't all just keep borrowing and spending, us mere mortals can't just borrow our way out of debt like the government thinks it can.