Comments on: Oh dear - now the taxpayer is on the hook for big money http://www.johnredwoodsdiary.com/2007/12/18/oh-dear-now-the-taxpayer-is-on-the-hook-for-big-money/ Conservative Party Member of Parliament for Wokingham Sat, 11 Oct 2008 09:36:06 +0000 http://wordpress.org/?v=2.6.2 By: Bazman http://www.johnredwoodsdiary.com/2007/12/18/oh-dear-now-the-taxpayer-is-on-the-hook-for-big-money/#comment-15714 Bazman Wed, 19 Dec 2007 09:50:10 +0000 http://www.johnredwoodsdiary.com/2007/12/18/oh-dear-now-the-taxpayer-is-on-the-hook-for-big-money/#comment-15714 Corporate Welfare at it's finest. Corporate Welfare at it’s finest.

]]> By: Matthew http://www.johnredwoodsdiary.com/2007/12/18/oh-dear-now-the-taxpayer-is-on-the-hook-for-big-money/#comment-15634 Matthew Wed, 19 Dec 2007 00:15:16 +0000 http://www.johnredwoodsdiary.com/2007/12/18/oh-dear-now-the-taxpayer-is-on-the-hook-for-big-money/#comment-15634 Also, question 2) - What's your view on George Osborne's (apparently sensible) view that the State should have more powers? Reply: In what field? Also, question 2) - What’s your view on George Osborne’s (apparently sensible) view that the State should have more powers?

Reply: In what field?

]]> By: Matthew http://www.johnredwoodsdiary.com/2007/12/18/oh-dear-now-the-taxpayer-is-on-the-hook-for-big-money/#comment-15633 Matthew Wed, 19 Dec 2007 00:14:12 +0000 http://www.johnredwoodsdiary.com/2007/12/18/oh-dear-now-the-taxpayer-is-on-the-hook-for-big-money/#comment-15633 Thanks for the reply, and the one below. Certainly some of your readers seem to think that Thanks for the reply, and the one below.

Certainly some of your readers seem to think that

]]> By: Steve Horgan http://www.johnredwoodsdiary.com/2007/12/18/oh-dear-now-the-taxpayer-is-on-the-hook-for-big-money/#comment-15613 Steve Horgan Tue, 18 Dec 2007 20:56:26 +0000 http://www.johnredwoodsdiary.com/2007/12/18/oh-dear-now-the-taxpayer-is-on-the-hook-for-big-money/#comment-15613 I quite agree that this was the wrong decision, and the only conceivable reason why it was taken is that the haemorrhage of funds from Northern Rock has continued unabated. Not surprising really, their credit rating has been downgraded and as short term paper falls due there must be a dearth of new lenders. Without this guarantee we can assume that the two remaining bids would have failed, and bank failed shortly thereafter. Will it work? Well we will have to wait and see, and the answer should come quite quickly. If lenders do not come forward despite this guarantee then Northern Rock faces administration or nationalisation, probably the latter now that the government has such a high degree of liability. How did we ever get into the situation that such a large proportion of the British government's working capital ends up invested in a mortgage company just as house prices start to tumble? I quite agree that this was the wrong decision, and the only conceivable reason why it was taken is that the haemorrhage of funds from Northern Rock has continued unabated. Not surprising really, their credit rating has been downgraded and as short term paper falls due there must be a dearth of new lenders. Without this guarantee we can assume that the two remaining bids would have failed, and bank failed shortly thereafter. Will it work? Well we will have to wait and see, and the answer should come quite quickly. If lenders do not come forward despite this guarantee then Northern Rock faces administration or nationalisation, probably the latter now that the government has such a high degree of liability. How did we ever get into the situation that such a large proportion of the British government’s working capital ends up invested in a mortgage company just as house prices start to tumble?

]]> By: Matthew http://www.johnredwoodsdiary.com/2007/12/18/oh-dear-now-the-taxpayer-is-on-the-hook-for-big-money/#comment-15596 Matthew Tue, 18 Dec 2007 17:23:39 +0000 http://www.johnredwoodsdiary.com/2007/12/18/oh-dear-now-the-taxpayer-is-on-the-hook-for-big-money/#comment-15596 I don't think the I don’t think the

]]>