If you ever wanted a straightforward explanation of the Sub Prime Crisis (not my words) then this is it, worth the full 8 minutes.
It is however a spoof, or is it?
Enjoy
Richard Smith
The Finance Zone
0845 226 9106
As the financial services proposition in the UK changes it’s nice to see Branson lead the field in the push for Northern Rock.
Northern Rock is a basket case, it over lent to borrowers who should not have borrowed as much as they did, and then the “credit crunch” started to bite, and of course the lending book started to look questionable, and then the world and his wife along with their wallets went running. This only left the Bank of Last resort UK Treasury (read Taxpayer) to foot the bill. It should have been allowed to collapse, and the management team put in prison – Newgate – a debtors prison would suffice.
Personally I think that Branson and his team should be able to buy the ‘rock, I think the time has come to wake up the high street and start to transform a boring market place. However the battle for the return of UK taxpayers money should be the focus and not the potential profit for another group of faceless financiers.
Perhaps those lenders that competed in the Northern Rock market place are now starting to look a bit cheap (on current stock market valuations), perhaps one should by now whilst stocks last. One for the very brave I think.
Is the Crunch going to get worse – of course it is.
If you are not rebalancing your portfolio now, you should be.
If you are not switching your mortgage now you should be.
If you are not cutting back on the Christmas spend, you better had.
Richard Smith
0845 226 9106
