Renthusiast2.0

The writing’s on the wall for UK sub-prime industry as Northern Rock arguably the biggest sub-prime mortgage bank in the UK effectively goes bust, were it not for another Bank of England bailout; yet some politicians feel that there is ‘no need to panic‘.
However, there certainly is need for concern in Northern Rock’s situation because the cash crunch problem affecting UK lending institutions, is being caused mainly by irresponsible lending in US housing, particularly the sub-prime market.
Northern Rock, solely a UK lender, brings the problem close to home.
The actions by the UK central bank appear in some way to contradict the policy Mervin King outlined a few weeks ago, when he stated that the Bank of England would not support ‘unwise lenders’, although his comments were with regards to interest rate policy. However, today’s bailout indicates he may be having a problem sticking to his words

RELATED : HAS MERV LOST THE PLOT