Who knows Northern Rock' s course?

The most probable Northern Rock's future is being bought by a large bank or any other bidder who could afford bank's financial situation.

Private equity firms in the US and UK are known to be circling Northern Rock. The american JC Flowers seems to be one of the bidders. Mr Flowers is one of the richest americans according to The Forbes 400 http://forbes.com/lists/2006. The Sunday Telegraph reported yesterday he may join the Cerberus Capital Management LP and Citadel Investment Group LLC hedge funds to split up Northern Rock.

While rumors of possible contenders are at every press, the UK's fifth-biggest mortgage lender tries to calm its customers with the message "Your funds are safe with Northern Rock" http://www.northernrock.co.uk/. The reason is that about £1 billion was withdrawn by panicking customers on Friday. As a concenquence the company's shares suffered a big decrease in their value on the market.

The Sunday Telegraph's photo

To sum up, if no bidder appears during the next few weeks the bank may be force to consider separating sales of its mortgage book.

The Crash of´29

The Crash of 1929 was one of the most devastating stock market crashes in American history. It consists of Black Thursday, the initial crash and Black Tuesday, the crash that caused general panic five days later.

While no consensus exits about its exact causes, it argues that one of the principle causes was the attempt by politicians and the media to stop markets speculators. The probable second reason was the great expansion of investment trusts and public utility holding companies. The convential view was that stock prices were too high.

The Wall Street Crash had a tremendous impact on the whole population, because the dramatical prices fall made it very difficult for entrepreneurs to find the necessary money to go on running companies. This problem made more than 100000 american companies close and consequently a lot of workers became unemployed and at that moment there was no national system of unemployment benefit. The final consequense was that the american purchase power fell dramatically.

This crash helped bring on the drepression of the thirties which was a terrible period of crisis in the whole world. The depression also helped to extend the period of low stock prices, because of that it took to the Wall Street bourse 22 years to reach the same level it achieved in 1929.