Thursday, September 20, 2007

Financial Problems Aren't Just For the Other Guy

So what started off with a decision to read a post at about blogging ended up taking me to England and Wisconsin and back. At the easel, a sketch artist's blog was pointed to as an example of how to attract visitors. But when I got there I discovered the artist/blogger was posting about what she found out by standing in line waiting to get into her bank, Northern Rock.

Apparently, the subprime lending situation isn't limited to the US. In England, when the folks who placed their money at Northern Rock found out that their savings, etc, were not fully insured, they began to line up to move their money. But after several days of the pressure building the bank announced not only were they now fully insured but anyone replacing their money before Oct. 9 would receive a full refund of any penalties they had to pay for early withdrawal. We aren't the only country feeling a credit crunch.

Here in California we haven't seen any bank runs yet, as far as I know, but that hasn't stopped us from beginning to wonder and worry exactly how banks work.

And for that matter what is going to happen in the whole credit industry has become a question that over the next few days I intend to study.

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