Comments on: Americas very own Northern Rock - Bear Stearns. http://www.trumpo.com/blog/business/americas-very-own-northern-rock-bear-stearns/ Advice in good times and bad Sat, 19 Jul 2008 23:35:12 +0000 http://wordpress.org/?v=2.3 By: Trumpo http://www.trumpo.com/blog/business/americas-very-own-northern-rock-bear-stearns/#comment-941 Trumpo Fri, 21 Mar 2008 08:27:46 +0000 http://www.trumpo.com/blog/business/americas-very-own-northern-rock-bear-stearns/#comment-941 I'm afraid these disastrous "coincidences" keep occurring with monotonous regularity - strange isnt it ! I’m afraid these disastrous “coincidences” keep occurring with monotonous regularity - strange isnt it !

]]> By: Nick Parry http://www.trumpo.com/blog/business/americas-very-own-northern-rock-bear-stearns/#comment-939 Nick Parry Wed, 19 Mar 2008 12:34:58 +0000 http://www.trumpo.com/blog/business/americas-very-own-northern-rock-bear-stearns/#comment-939 Bear Stearns made this announcement extremely soon after the FED announced it was making $200 bn available to help stabilise the US banking system in the event of further crises. Is this a coincidence? Bear Stearns made this announcement extremely soon after the FED announced it was making $200 bn available to help stabilise the US banking system in the event of further crises. Is this a coincidence?

]]> By: Jim Payne http://www.trumpo.com/blog/business/americas-very-own-northern-rock-bear-stearns/#comment-935 Jim Payne Mon, 17 Mar 2008 10:17:28 +0000 http://www.trumpo.com/blog/business/americas-very-own-northern-rock-bear-stearns/#comment-935 As you say Trumpo, what a contrast between America and the UK. I often deplore the American way of shooting from the hip and thinking afterwards, but this appears to be sensible and swift action which is exactly what is required in the current circumstances. Financial markets can deal with most bad news, but totally abhor not knowing the extent of problems and where the ultimate losses will end up. What they need is clarity. This news from America contrasts markedly from the indecision on NR. We are told that some of the best brains in the country reside in the Treasury so are entitled to assume that they know what the problems are. Why therefore does it appear that there is a total lack of policy or direction. Are they in denial of the seriousness of the situation? or just frozen with fear of making a wrong call! Perhaps Treasury officials should have one hand tied behind their back to prevent them from using the time honoured 'on the one hand this.., on the other hand that..' Or perhaps both hands tied back would prevent them from climbing up to 'sit on the fence'. 'NEW' Labour was built on 'spinning' a story and trying to manipulate public opinion so one would have thought that they would have understood that public 'perceptions' and 'sentiment' DO move markets and house prices as well as create 'runs' on banks! Their perceived inaction or months of dithering can only be bad for all. It may be opening up another area for discussion, or even contributing to conspiracy theories, but in the recent reporting season for the major banking institutions they all basically said 'business as usual', 'profits up, not really effected by exposure to possible huge debts' strikes me as strange because these very banks are all SO WORRIED about each others balance sheets that they refuse to lend to each other! Who is kidding who? As you say Trumpo, what a contrast between America and the UK. I often deplore the American way of shooting from the hip and thinking afterwards, but this appears to be sensible and swift action which is exactly what is required in the current circumstances.
Financial markets can deal with most bad news, but totally abhor not knowing the extent of problems and where the ultimate losses will end up. What they need is clarity.
This news from America contrasts markedly from the indecision on NR. We are told that some of the best brains in the country reside in the Treasury so are entitled to assume that they know what the problems are. Why therefore does it appear that there is a total lack of policy or direction. Are they in denial of the seriousness of the situation? or just frozen with fear of making a wrong call!
Perhaps Treasury officials should have one hand tied behind their back to prevent them from using the time honoured ‘on the one hand this.., on the other hand that..’ Or perhaps both hands tied back would prevent them from climbing up to ’sit on the fence’.
‘NEW’ Labour was built on ’spinning’ a story and trying to manipulate public opinion so one would have thought that they would have understood that public ‘perceptions’ and ’sentiment’ DO move markets and house prices as well as create ‘runs’ on banks!
Their perceived inaction or months of dithering can only be bad for all.

It may be opening up another area for discussion, or even contributing to conspiracy theories, but in the recent reporting season for the major banking institutions they all basically said ‘business as usual’, ‘profits up, not really effected by exposure to possible huge debts’ strikes me as strange because these very banks are all SO WORRIED about each others balance sheets that they refuse to lend to each other! Who is kidding who?

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