Bottling on Northern Rock

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“Bottler” Brown, Scottish Prime Minister non-elect

“Bottler” is bottling it once again.

Northern Rock is costing British taxpayers a great deal of money.

The share holders are moaning about their investment if Northern Rock is nationalized or given away to Richard Branson. They overlook the fact that investors are gamblers who hope that a small investment will grow rapidly for no effort other than providing money to a commercial organization. Well gambling brings risk and the risk is you lose your shirt. Due to very bad management, Northern Rock became the subject of the first bank run in modern British history. Had the taxpayer not been forced to shore up the crumbling structure by pumping billions into the bank, it would have gone bust. That’s the point where shares become worthless.

“Bottler” Brown is terrified of making a decision and has been dithering since September and possibly earlier (because we do not yet know when he first learned of the problem which was largely a result of his botched interference in financial regulation when he was Chancellor).

It looks like small investors will individually lose thousands, finance houses that bought stock after the run in the hope of making a fat profit will lose millions and the British taxpayer will lose billions. In the meantime the staff and management of the failed bank pocketed some very fat bonus payments (paid for by the British taxpayer).

BSD Newsdesk

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