Northern Rock - the saga continues

There I was going to get my righteous on; how can the government guarantee the bank? Doesn't it just encourage other banks to take high risks, fail, then get bailed out?

After all people invested in this bank because of the preferential rates, how do you think they could offer them? You took the risk and you've got to take the consequences when it all goes wrong.

Then a bloody BBC reporter punctured my wrath by stating that the money only becomes available should Northern Rock go bust.

It's still not good, and you can bet that should that occur those at the top of the tree will barely notice before being slotted in some other top spot at another institution. If it doesn't then the prop by the BoE will keep it stumbling along for a while, before it, well, collapses.

Oh and we did get some guy at the FSA stating that now with this backing it would be irrational for people to pull their money out; yeah 'cos you know people are well-known for making highly rational decisions.