Monday, May 12, 2008
The wreck that can't stop sinking
Northern Rock just keeps piling on the agony for Brown, Darling and the rest of the New Labour crew. Today, the failed bank announced that its mortgage arrears jumped sharply, dramatically increasing the risk that the taxpayer will end up losing money after bailing out the failed lender.
The arrears numbers make grim reading. The number of mortgages three or more in arrears increased to 0.95 per cent of outstanding loans. In just four short months, this number has almost doubled.
It is now clear that Northern Rock's balance sheet was piled high with high risk rubblish. Moreover, all those government assurances about loan quality are now being cruelly exposed.
So, the Northern Rock disaster continues. Do you think that Northern Rock can keep on failing right up to the election? Could we be that lucky?