Northern Rock - Another Update

Has Northern Rock reverted to its old practices? Lending has begun in earnest and it has apparently paid off exactly 2/3rd of its bailout borrowings. Apparently 'found' some £18bn.

• Is this virtual money as before?
• The theoretical interest projected to be returned 'in the future'?
• From a £1.4bn loss in 2008 to repaying £18bn by early 2009?

The original government loan was £26.9bn and has been allegedly reduced to £8.9bn

£18bn/£26.9bn = 66.9%

Like most Northern Rock business, it just doesn't (appear to) add up: -£1.4bn -> +£18bn

Will this be hailed as evidence of success in dealing with the 'financial crisis'? The projected future interest return (virtual money) on loans is the payback. Totally virtual money. Where would £18bn be found unless it's vapour? It doesn't exist and never did. The government is happy, but as the debt-based financial system has always worked, promises (to pay the bearer) are the business of the day. Northern Rock Lending Policy