is england in money trouble ?

[luckyleftyme2]

Whats all the talk in the blogs about england? seems people are taking savings out of the banks.Is this do to borrowed money to fight in IRAQ?
remember russia,afghanistan sunk them.

[Shorebound]

1. Northern Rock Bank

The bank run so far (repeat: so far) has been limited to Northern Rock Bank. One of the forums I visit reported that the lines at NRB branches today are already three times longer than they were Friday and Saturday, when police had to be called to a couple of branches to break up the crowds. The bank got caught in the international liquidity squeeze that we're reading so much about, and has already been the target of a bailout from the Bank of England -- sort of like the megabillions the Fed has pumped into our financial system in the last two weeks to try to keep it afloat.

There are rumors of at least two major money-center banks in trouble here in the US, plus several market-maker Wall Street companies such as Goldman Sachs. Nothing firm, but there are some people predicting that we'll see lines in front of banks here before the end of the year.

But you're sort of right, Lucky -- there is an Iraq aspect to this, since all the money that has been wasted there has increased pressure on the financial system. BushCo Inc. needed cheap money to finance the war, and one way to do that has been to keep interest rates artificially low. The knock-on effect of low interest rates and easy money was the subprime mortgage market. Now the economy is tightening, people are getting nervous, and the financial chickens are coming home to roost.

Wouldn't it be ironic that Bush has to end the war because he can't pay for it anymore, and a Republican drives the country into bankruptcy? Same thing that happened to the Soviets in Afghanistan.

[luckyleftyme2]

2. perhaps history will repeat itself

didn't this happen with hoover? the conservative right was taken over by their over spending children in the 80's. the republican party is really stretching when it calls itself conservative and continues to spend like drunken sailors.
It's a shame they control the air waves!