3 comments on “Timmy Elsewhere

  1. Good point on mortgages – I’d be amazed if there was a single British mortgage-issuing bank that didn’t securitise its loans via SPVs, because it’s a really sensible and obvious thing to do.

    [I’m glad I took exams in interpreting financial institutions’ financial statements last year; most of the non-specialist commentary on Granite has been utterly woeful. Even that doesn’t explain the role of Richard Murphy, who – one would hope – does understand the relevant financial and accounting procedures…]

  2. I agree that Granite is talked about, and used as a building material far too much – these days.

    It’s blimmin hard to work with: I watched (intermittently) a workman spend a whole day drilling a single hole in a block of granite (in order to insert a fence post).

    When used as a table top it will smash a drinking glass dropped from just 5 mm onto its surface.

    And in the end it just looks like breeze blocks (from a distance)…

    What’s that? Oh – you don’t mean the igneous rock, you mean the subsidiary of Northern Rock.

    Well, *somebody* should be writing about the inexplicably fashionable igneous rock – which is responsible for a lot more deleterious economic impact (especially in the free-spending public sector) than the collapsed building society.

  3. The reporting on Granite has been shocking, but I’m even more disappointed by our elected representatives. They’re professing to be shocked by the existence and activities of Granite, six months after the bank’s inability to access Granite funding caused it to go under. Granite is fully disclosed in Northern Rock’s accounts (see, for instance, p85 of the 2006 annual report) What exactly have these people been doing since then to understand Northern Rock’s situation? What other fundamental aspects of the financial crisis are they completely ignorant about?

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