Tuesday, November 20, 2007

Northern Rock crisis, Is it going from bad to worse?

The Northern Rock crisis seems to be going from bad to worse. In what can't have been much of a surprise to anyone none of the bids for Northern Rock valued the bank at its current share price. Given the fact that it is in a fire sale and its chief executive was selling shares whilst encouraging others to buy them that seems fair.

We now have the position where there are doubts, however small that the taxpayer may not get all the money this government piled in back, and even if they do, it may be some considerable time yet.

Politically the fallout may be landing. In the initial aftermath of the run on the Northern Rock it looked like no one was blaming the government. Now you can't be quite so sure.

We will find out soon enough, there are some more polls due out soon. I would not be surprised to see Labour dipping some more on what has been fairly relentless bad news.

The Times has this
whilst the Guardian has this and the Telegraph has this.

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