RE: [OPE] Northern Rock

From: Paul Cockshott (
Date: Sat Feb 23 2008 - 12:14:15 EST

Jurrian quotes the Telegraph



To the 25 billion direct loan to the bank must be added the 30 billion in guarantees, making the total exposure for the taxpayer 55 billion. But when the Rock's mortgage book is thrown into the pot, the total increase in public sector net debt is 100 billion.



The paper is confusing things here. The mortgage book consists of debts to the Northern Rock not by the Northern Rock, these thus serve to offset the existing taxpayer exposure not add to it.


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