Bank Panic in Britain & Greenspan Recants
As you read this please keep in mind that the economy is “great.”
Northern Rock customers withdraw £1bn
By Harry Wallop, Consumer Affairs Correspondent – via kos diarist Magnifico
About £1 billion was withdrawn by panicking Northern Rock customers on Friday, as fears for the bank’s future sent shock waves through the City and caused its shares to crash.
The company’s phone lines were jammed for most of the day, its website crashed and the 72 branches were besieged by thousands of worried customers after it admitted having to ask the Bank of England for emergency funding.
The scenes came as the financial turmoil that has engulfed the money markets in the past month spilled on to the High Street.
In the meantime good old Greenspan has come down with a case of “the regrets.” In his new book, Bill Clinton comes off as an economic hero and Bush…well just read this:
“Little value was placed on rigorous economic policy debate or the weighing of long-term consequences.” The large, anticipated federal budget surpluses that were the basis for Bush’s initial $1.35 trillion tax cut “were gone six to nine months after George W. Bush took office.” So Bush’s goals “were no longer entirely appropriate. He continued to pursue his presidential campaign promises nonetheless.”
Too bad while he was still at the Fed Greenspan spent so much time covering for Bush by pushing stupid adjustible rate mortgages and no money down ponzi schemes.
You are guaranteed 100% of the first £2,000 and 90% of the next £33,000 by the government. Of course if Northern Rock goes bankrupt (a major possibility) you’ll be asking for your money back, along with millions of other savers. You won’t see a penny for months (or possibly over a year) and will lose the interest you’d have gained if you’d transferred your money on Monday. The price you’ll pay is maybe a few tenths of a percent in interest. What price is peace of mind?
Hmm. Unaware that that we dealt in pounds over here. In fact, I thought one of the complaints about our “terrible economy”, was that the dollar held no value against foreign currency. If the British economy is taking a “pounding” (<-Pun intended), seems like that would make the exchange rate shoot up a little bit. So drawing parallels between a British bank failing and our terrible economy seems a little baseless.
As for Greenspan, note his use of the word “aniticipated surpluses”. They never existed. They were based off of the rampant economic growth because of the tech bubble. They day the tech bubble burst (prior to Bush taking office) those surpluses were about gone. Then the economic impact of 9/11 (9 months after Bush took office) wiped out the rest.
“So Bush’s goals “were no longer entirely appropriate.”
What makes you so sure he is referring to the tax cuts? I take to mean the wasteful domestic and pork barrel spending that were not appropriate.
“He continued to pursue his presidential campaign promises nonetheless.”
Gee….I thought we looked for that in a president. I guess only when they are LIBERAL campaign promises…
So drawing parallels between a British bank failing and our terrible economy seems a little baseless.
We’ll see. Let’s just say I’m not optimistic with Bush in charge.
As for Greenspan, note his use of the word “aniticipated surpluses”. They never existed.
Whatever gets you through the night. It’s alllll-riight, It’s alll-riiiight.
“We’ll see. Let’s just say I’m not optimistic with Bush in charge.”
In other word…baseless.
Keep thinking happy thoughts Chris.
One would think that after falling over the edge of a cliff, while one is free falling to the rocks below, that perhaps the thought might cross his mind that straying too close the the edge was not a good idea.
Instead of blaming the grass for tripping him, or the dirt crumbling beneath his feet, or the wind from blowing while one decided to lean out too far over the edge or the precipice, one would think that during his free fall to oblivion, he would accept reality and stop making excuses.
Anyone, anyone, who still defends republican economic policy,………is existing in the scenario painted above. Anyone, anyone who still defends his support for this version of a republican money grab, for which the rest of us will be paying on for years,…….must be laughed off………
They are nothing but a Tom Petty fool………”free falling”.
Are your taxes paid by your mortgage company? Mine are.
Checks sent out by the troubled American Home Mortgage Investment Corp. to pay the property taxes of more than 70 homeowners in the Baltimore metropolitan area have bounced, local officials said yesterday.
Baltimore City received bad checks for 53 properties – a total of about $63,500. Baltimore County said American Home Mortgage checks bounced for 21 properties, totaling $41,000. Taxes are due at the end of the month.