What does it mean if Northern Rock collapse

Question

why can't the government leave it alone? and if they did what would happen?

Answer 1

it means the government has wasted more of our money again by trying to keep it afloat and failing.

Answer 2

A run on all banks as people panic to withdraw their money of which there isn't enough hard cash to go around.  

Answer 3

Had the govt not stepped in when NR was in trouble, there is little doubt that many other banks would have followed it and collapsed. The banking scene today would then be vastly different. Imagine the likes of HBOS, A&L, TSB, etc., all going under.

Having rescued NR, the govt would look very foolish to let it go under. If it did, all the taxpayers' money would be lost forever. The money of savers will still be guaranteed by the govt so there will be more to pay out. It might even trigger a run on the banks and that would have serious consequences for all of us. Don't blame it one the bogey, or govt. Blame it on Uncle Sam who started the sub-prime mess.

Answer 4

it just means another bank went down.

Answer 5

Most likely it would really but economists always think if a bank goes the whole lot would fall after each other.  

Answer 6

It more or less has.

We silly taxpayers are baling it out.

If the FSA and the Treasury had done their appointed jobs properly their cavalier policies would have been halted before things went this far.

Other banks in trouble now, we can't prop them all up...     ...can we?

Answer 7

It means the UK taxpayer loses more money from an incompetent government.

Add to this the bungled court cases by useless police/security services it all adds up.

Revolution i say

Answer 8

It has collapsed.

It is too big to be allowed to go to the wall.

Global financial meltdown - which is why it was rescued.