From: John Boyle 
Newsgroups: uk.finance
Subject: Re: Northern Rock and the mortgages - where do they stand ?
Date: Sat, 15 Sep 2007 11:54:09 +0100
Bytes: 1638

In message , Alan 
 writes
>>itors
>
>Isn't the problem with Northern Rock the fact that they don't own the 
>assets? They have borrowed the money to lend to people and then have 
>sold off these 'assets' on the open market.
>
Not quite, their problem is that they have been accustomed to being able 
to borrow easily on the money markets at good rates because of their 
credit rating. The supply of funds at good rates has dried up 
completely. Its not necessarily NRs fault and their balance sheet hasnt 
changed.
-- 
John Boyle