Comments on: What to do instead of nationalising Northern Rock http://www.johnredwoodsdiary.com/2008/01/13/what-to-do-instead-of-nationalising-northern-rock/ Conservative Party Member of Parliament for Wokingham Tue, 07 Oct 2008 07:10:59 +0000 http://wordpress.org/?v=2.6.2 By: Bazman http://www.johnredwoodsdiary.com/2008/01/13/what-to-do-instead-of-nationalising-northern-rock/#comment-16479 Bazman Tue, 15 Jan 2008 08:57:34 +0000 http://www.johnredwoodsdiary.com/2008/01/13/what-to-do-instead-of-nationalising-northern-rock/#comment-16479 The other beggars will be the Northern rock bosses pocketing their performance bonuses paid for continuing excellent performance. Performance so good that without the state support would collapse. The punchline though is that they need to be paid this to ensure the continuing stability of the bank. A bit like employing the same cowboy builders who made your house start to fall over. Trebles all round. Now you may say renumeration is a matter for the company. Firstly renumeration? What is that? Yes. Pay! Are people in factories renumerated? Pay is not a matter for Northern Rock when it could not even pay it's electricity bill. The management of this bank took a high risk strategy in the suspicion that whatever happened, the state would bail them out while no doubt screaming against any regulation. What do they have to do to fail? Rob the vault? Probably get some incurable disease and be released early from prison with the money, then recover in a medical first. That's just stupid though... It's interesting that the Conservatives and Labour are involved in a competition see who can be the most harsh on unemployed 'beggars' when there are so many rich people avoiding tax and receiving money for little work, risk, and in this case for failure. Maybe the public just doesn't understand? The problem is they understand only to well. Hence the attempt at secrecy surrounding these payments. Beggars belief. The other beggars will be the Northern rock bosses pocketing their performance bonuses paid for continuing excellent performance. Performance so good that without the state support would collapse. The punchline though is that they need to be paid this to ensure the continuing stability of the bank. A bit like employing the same cowboy builders who made your house start to fall over. Trebles all round.
Now you may say renumeration is a matter for the company. Firstly renumeration? What is that? Yes. Pay! Are people in factories renumerated? Pay is not a matter for Northern Rock when it could not even pay it’s electricity bill. The management of this bank took a high risk strategy in the suspicion that whatever happened, the state would bail them out while no doubt screaming against any regulation. What do they have to do to fail? Rob the vault? Probably get some incurable disease and be released early from prison with the money, then recover in a medical first. That’s just stupid though…
It’s interesting that the Conservatives and Labour are involved in a competition see who can be the most harsh on unemployed ‘beggars’ when there are so many rich people avoiding tax and receiving money for little work, risk, and in this case for failure. Maybe the public just doesn’t understand? The problem is they understand only to well. Hence the attempt at secrecy surrounding these payments.
Beggars belief.

]]> By: mikestallard http://www.johnredwoodsdiary.com/2008/01/13/what-to-do-instead-of-nationalising-northern-rock/#comment-16465 mikestallard Mon, 14 Jan 2008 16:43:30 +0000 http://www.johnredwoodsdiary.com/2008/01/13/what-to-do-instead-of-nationalising-northern-rock/#comment-16465 Interesting point today in the Telegraph leader: When Northern Rock is nationalised, for the first time in British history, it will be the government, not a commercial firm, who repossesses houses when the mortgage defaults. That ought to make them really popular. I can just see it now: the Victorian young girl, still clutching her child in her arms, being driven out into the snow by a black coated politician. Interesting point today in the Telegraph leader:
When Northern Rock is nationalised, for the first time in British history, it will be the government, not a commercial firm, who repossesses houses when the mortgage defaults.
That ought to make them really popular.
I can just see it now: the Victorian young girl, still clutching her child in her arms, being driven out into the snow by a black coated politician.

]]> By: Neil Craig http://www.johnredwoodsdiary.com/2008/01/13/what-to-do-instead-of-nationalising-northern-rock/#comment-16461 Neil Craig Mon, 14 Jan 2008 13:04:19 +0000 http://www.johnredwoodsdiary.com/2008/01/13/what-to-do-instead-of-nationalising-northern-rock/#comment-16461 When you start subsidising somebody you create a lobby that demands ever more subsidy. The shareholders (a fair proportion of whom were not the original shareholders but entrepreneurs who bought up cheap shares in the expectation they would be able to extract extra cash from government) are now practicing the same welfarism as the windmill industry & the "caring professions". When you start subsidising somebody you create a lobby that demands ever more subsidy. The shareholders (a fair proportion of whom were not the original shareholders but entrepreneurs who bought up cheap shares in the expectation they would be able to extract extra cash from government) are now practicing the same welfarism as the windmill industry & the “caring professions”.

]]> By: Ian Evans http://www.johnredwoodsdiary.com/2008/01/13/what-to-do-instead-of-nationalising-northern-rock/#comment-16444 Ian Evans Sun, 13 Jan 2008 11:47:15 +0000 http://www.johnredwoodsdiary.com/2008/01/13/what-to-do-instead-of-nationalising-northern-rock/#comment-16444 I think a significant problem for the government here is the shameful failure of its regulatory framework! Under normal circumstances a failing business should obviously take its shareholders with it into oblivion, but in this case (though not myself a shareholder, thank heavens - never trusted their business model!) the shareholders can justifiably complain about the government's regulatory failures if the company does go belly-up! I think a significant problem for the government here is the shameful failure of its regulatory framework!

Under normal circumstances a failing business should obviously take its shareholders with it into oblivion, but in this case (though not myself a shareholder, thank heavens - never trusted their business model!) the shareholders can justifiably complain about the government’s regulatory failures if the company does go belly-up!

]]> By: mikestallard http://www.johnredwoodsdiary.com/2008/01/13/what-to-do-instead-of-nationalising-northern-rock/#comment-16437 mikestallard Sun, 13 Jan 2008 07:26:48 +0000 http://www.johnredwoodsdiary.com/2008/01/13/what-to-do-instead-of-nationalising-northern-rock/#comment-16437 Gordon Brown has made it totally clear that he knows very little about banking. The Chancellor is, I understand, a lawyer, isn't he? A lot of this is being driven by the EU from Brussels through the FSA. then, aren't there a lot of ancient Labour types (like the Beast of Bolsover) who need to be kept on side in this matter which affects their voters? This group of people does not bode well for the future of Northern Rock and, I imagine, aren't going to listen to common sense, which you are (as ever!) providing by the day. Gordon Brown has made it totally clear that he knows very little about banking. The Chancellor is, I understand, a lawyer, isn’t he?
A lot of this is being driven by the EU from Brussels through the FSA. then, aren’t there a lot of ancient Labour types (like the Beast of Bolsover) who need to be kept on side in this matter which affects their voters?
This group of people does not bode well for the future of Northern Rock and, I imagine, aren’t going to listen to common sense, which you are (as ever!) providing by the day.

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