NORTHERN ROCK NEWS UPDATE
You have all probably heard hours of news reports regarding the Northern Rock loan request from the Bank of England. I was so interested to see how scared everyone one gets by media gossip and reports from "Experts".
Northern Rock borrows money from the money market (other banks) and offers it to retail customers (me and you) in the form of mortgages, loans and other forms of credit. The public savings in the company amount to very little.
The main reason NR went to the Bank of England was due to them being unable to supply demand for their mortgages.
NR have become a victim of their own success however they have yet to request or draw down a penny from the BoE.
If you remember what happens when the "experts" predict petrol shortages they are usually correct. Not because there are any problems with the oil industry but rather the media scare the public into stocking up. The result is more demand which effects the supply chain.
The same situation threatens to effect the finance industry. If the media continue to report on problems that don't yet exist we may well see the media predicting future events by creating them in the first place.
I suggest that all my readers take stock of the situation and realise that the British finance industry is one of the safest in the world.
If you need advice on your mortgages then remember to visit my mortgage advice portal.
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