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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 378.35+2.7%4:00 PM EST
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To: Snowshoe who wrote (25562)11/23/2007 1:54:31 AM
From: elmatador  Read Replies (1) of 217648
 
A sample of how things will develop in England: Step Nr. 2. Payback the liquidity injection.
Central Bank makes liquidity available to avoid total collapse.
Northern Rock can't pay the liquidity back to Central Bank because THEIR money went to haven...

Depostiors, however, sent £4.1 billion in deposits in the six months to September 30, (a 96 per cent increase on the same period last year) into the coffers of Nationwide double the normal monthly take — as panicked savers transferred their cash from Northern Rock to the UK’s biggest building society.

In the end the Bank of England gave money to Northern Rock which is tranferred to Nationwide.

But look closely: "Yesterday, it emerged that Northern Rock’s borrowing from the Bank of England could have risen to £26 billion, up £1.1 billion on the previous week."

That means that only £4.1 billion is still in the banking system. Where are the remaining £21.9 billion?

Why was not Northern Rock liquidated? I think the governemt feared shock wave, wet in paralisys and is now pushing the problem with the belly.

That means Northern Rock will milk Bank of England and then will be dumped, money went to heaven. Tax payers will pay the bill...
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