Friday, September 14, 2007

Anarchy in the U.K.!

Well, ok, not quite. But in the case of Northern Rock, a British mortgage lender, a liquidity shortfall has led to and ol'fashioned bank run, complete with people queuing in the street to withdraw their money. The Bank of England is stepping in with an emergency loan. This is probably a waste of time and money, as it will not likely stop the panic; only a full-blown rescue/buy out will.

A humorous aside from The Economist:

Customers queuing up in its home town of Newcastle reportedly burst out laughing when bank staff asked if anyone wanted to deposit money