Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
From a Stocks Bull Market Far, Far Away, Virus Doomsday Scenerio! - 16th Jul 20
Fiscal Cliffs and the Self-destructing Treasury - 16th Jul 20
Dow Stock Market Crash Watch - Update - 16th Jul 20
Gold & Silver Gaining on US Dollar Weakness - 16th Jul 20
How to Find the Best Stocks to Invest In - 16th Jul 20
Overclockers UK Custom Build PC Review - 2. System Build Changes Communications - 16th Jul 20
Gold Amid Epidemiological and Economical Update - 15th Jul 20
Is it Time To Dump Gold Stocks? - 15th Jul 20
Retail Stock Market Traders & Investors Squeezed to Buy High-Risk Assets Again - 15th Jul 20
SPX about to Challenge 8/08 High - 15th Jul 20
How to Grow Huge Fruiting Magical Indoor Grape Vines at Home UK - 15th Jul 20
Stock Market Dow 30k before End of 2020? - 13th Jul 20
Credit Market Investments Turned Into End-User Risk Again - 13th Jul 20
Investors Are Going All-In on This Coronavirus Proof Industry - 13th Jul 20
5 Vital Insights That You Can Gain From Instagram Trackers - 13th Jul 20
Stop Believing The 'Economy' Is The Same As The Stock Market - 12th Jul 20
Spotify Recealed as The “Next Netflix” - 12th Jul 20
Getting Ahead of the Game: What Determines the Prices of Oil? - 12th Jul 20
The Big Short 2020 – World Pushes Credit/Investments Into Risk Again - 11th Jul 20
The Bearish Combination of Soaring Silver and Lagging GDX Miners - 11th Jul 20
Stock Market: "Relevant Waves Vs. Irrelevant News" - 10th Jul 20
Prepare for the global impact of US COVID-19 resurgence - 10th Jul 20
Golds quick price move increases the odds of a correction - 10th Jul 20
Declaring Your Independence from Currency Debasement - 10th Jul 20
Tech Stocks Trending Towards the Quantum AI EXPLOSION! - 9th Jul 20
Gold and Silver Seasonal Trend Analysis - 9th Jul 20
Facebook and IBM Tech Stocks for Machine Learning Mega-Trend Investing 2020 - 9th Jul 20
LandRover Discovery Sport Service Blues, How Long Before Oil Change is Actually Due? - 9th Jul 20
Following the Gold Stock Leaders as the Fed Prints - 9th Jul 20
Gold RESET Breakout on 10 Reasons - 9th Jul 20
Fintech facilitating huge growth in online gambling - 9th Jul 20
Online Creative Software Development Service Conceptual Approach - 9th Jul 20
Coronavirus Pandemic UK and US Second Waves, and the Influenza Doomsday Scenario - 8th Jul 20
States “On the Cusp of Losing Control” and the Impact on the Economy - 8th Jul 20
Gold During Covid-19 Pandemic and Beyond - 8th Jul 20
UK Holidays 2020 - Driving on Cornwall's Narrow Roads to Bude Caravan Holiday Resort - 8th Jul 20
Five Reasons Covid Will Change SEO - 8th Jul 20
What Makes Internet Packages Different? - 8th Jul 20
Saudi Arabia Eyes Total Dominance In Oil And Gas Markets - 7th Jul 20
These Are the Times That Call for Gold - 7th Jul 20
A Reason to be "Extra-Attentive" to Stock Market Sentiment Measures - 7th Jul 20
The Beatings Will Continue Until the Economy Improves - 6th Jul 20
The Corona Economic Depression Is Here - 6th Jul 20
Stock Market Short-term Peaking - 6th Jul 20
Gold’s Major Reversal to Create the “Handle” - 5th July 20
Gold Market Manipulation And The Federal Reserve - 5th July 20
Overclockers UK Custom Build PC Review - 1. Ordering / Stock Issues - 5th July 20
How to Bond With Your Budgie / Parakeet With Morning Song and Dance - 5th July 20
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

UK Government Sells Northern Rock for Approx £20 billion Loss to Virgin Money

Politics / Credit Crisis Bailouts Nov 20, 2011 - 12:00 AM GMT

By: Nadeem_Walayat

Politics

This weeks mainstream media coverage in the UK of the sale of the bankrupt bailed out Northern Rock to Virgin Money for approx £1 billion against a £1.4 billion cost to the tax payer for a net loss of approx £400million as illustrated by the Daily Mail and the BBC's Robertt Preston telling us that the tax payer has got a good deal is WRONG.


Daily Mail: Rock sale costs taxpayer £400m

Taxpayers lost at least £400million yesterday with the sale of bailed-out Northern Rock.

What the mainstream propaganda is overlooking are the bad debts amounting to approx £45 billion that have been removed from Northern Rock and placed under government agency management or in other words are the liabilities of tax payers.

The actual losses that the tax payer is ultimately staring at will amount to between £18 and £25billion, or about 60 TIMES the official loss of £400 million. Northern Rock represents a microcosm of the state of the UK and global banking system in that the bankrupt banks that were not allowed to go bankrupt but bailed out at unlimited liability to the tax payers are now bankrupting governments to which the only response governments have is to print debt at artificially low interest rates as a consequence of monetization of debt i.e. printing money to buy government debt that has been accrued as a consequence of bailing out the bankrupt banking sector.

More on this in my next in-depth analysis of the Inflation mega-trend, to get this in your email in box ensure you are subscribed to my always free newsletter.

Source and Comments: http://www.marketoracle.co.uk/Article31642.html

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2011 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of three ebook's - The Inflation Mega-Trend; The Interest Rate Mega-Trend and The Stocks Stealth Bull Market Update 2011 that can be downloaded for Free.

Stocks Stealth Bull Market Ebook DownloadThe Interest Rate Mega-Trend Ebook DownloadThe Inflation Mega-Trend Ebook Download

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 600 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Shyam
20 Nov 11, 15:46
current outlook still valid for stock market

Hi Nadeem,

The current outlook is still valid for stock market? Because I am seeing lot of calls for crash from SPX 1200 to 1000/900-500 level, in next 2-6 weeks from now. WE just had 20% correction and now we are on our way to next new high in the normal bull market according to inflation mega trend based on your last update. Can you please comment on this for quick reply as I wait eagerly for your next in-depth update.

Thanks,

Shyam


Anonymous
21 Nov 11, 05:30
Not good really

We are witnessing the decline of the West.

I tried to warn people not to get into the markets despite claims of "new bull highs" when technically this did NOT fit.

Governments always go after "other people's money" in their last desperate attempts to hold on to power and the status quo. This is why we are seeing our freedoms and democracy being hindered.

I suppose the question must be asked whether you want to live in this kind of ever increasing fascist state? Good luck with your Sheffield house purchase Nadeem. I personally would be moving away from this desperate country. Look at how our wealth has been deliberately eroded through the currency exchange rate markets (QE). Expect more of this until the people of Britain are cornered and cannot get out. Perhaps, then we will hear the proverbial "pips squeak". as the middle classes finally wake up to their reality - enforced enslavement by the banking elite.

When market interest rates do rise, the misery will increase further.


Nadeem_Walayat
23 Nov 11, 02:08
Volatile Markets and Big Picture

Hi

Yes, stock market volatility is high, but the big picture is that the markets are waiting for the ECB to start printing trillions of Euro's

When ? Well as the debt contagion increasingly spreads to core eurozone then that will end the German Bunds bull run, prompting the ECB to print money and monetize all EU debt.

The mega-trend remains the same as I voiced 2 years ago, governments will print money to monetize debt which means the value of cash will be destroyed so you need to be in hard assets such as commodities, div stocks and housing

Watch for my next in-depth article on UK inflation mega-trend.

But, at the end of the day, the future is very bright, we are on a parabolic curve of technological developement, the next 20years will see more advances than the last 200 ! Genetics, we have not even begun ! Imagine bacteria that turns waste into food or fuel ! Thats where we are heading!

Best

NW


Bman
23 Nov 11, 21:21
German Bond Sale Failed

Hi Nadeem, how does the failed German bond sale overnight affect your analysis. To my mind, if the Germans can't raise cash Europe is gone, no matter how much money printing they do, because no one will have faith in this cash they will be throwing around. I think we are heading down next year, but maybe a Santa Claus rally before then.


Nadeem_Walayat
24 Nov 11, 01:23
Bond Market Pressure Cooker

The markets are waking up to the fact that Germany is offering 2% against 3% inflation. The same holds true or is worse for the rest.

I need to complete my article and post it cos events are happening that I am anticipating but have not posted for a few weeks. In which respect there are mega-profits brewing in shorting the bond markets, thats Japan, UK, Germany and eventually the US.

The UK is not a safe haven, neither is Japan or the US, the UK interest rates should be about 6%, thats were they eventually will be (10 year gilts) and spike far higher at a rate we cannot even imagine today.

Best

NW


MG
24 Nov 11, 05:22
Bond Market Pressure Cooker

Dear Nadeem,

I hold some UK and international inflation-linked bonds; would you suggest I sold them?

Thank you for your advice.

Regards,


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules