The Week Ender: Never Throw Good Money After Bad Money!

Sometimes the best small business lessons can be learned in the media. Here in the UK we have one of those lessons happening right now: Northern Rock!

One of the UK’s embattled mortgage lenders, Northern Rock got in to trouble and what should have been resolved in private has turned into the biggest economical and financial debacle ever. Rarely has a financial crisis been so incompetently handled by everybody concerned.

Without wanting to bore you with all the details, the exposure for the British tax-payer could get up to £100bn, but suffice to say Mr Darling, the Chancellor, has been at the forefront of this “incompetence wave”.

The result will be an even bigger squeeze on public spending, crime, our schools, crumbling health service. And of cause small business is going to suffer, as Mr. Darling will have to find new ways to tax us all, to pay for his incompetence.

Small Business and Government Lesson – Never throw good money after bad! Have a nice weekend – ST.

4 Responses to “ The Week Ender: Never Throw Good Money After Bad Money! ”

1. Ric Franzi
   
   Said on January 19th, 2008 at 1:49 am

   It is hard to believe but many executives of large corporations “fail-up” on a regular basis.

   Here in the US shareholders are starting to understand how removed executive compensation can be from executive competence.

   It is shameful how our governments protect the weak just because they are big.

   Small business owners never seem to get that type of help…I wonder why?

2. Stefan Töpfer
   
   Said on January 19th, 2008 at 10:34 am

   Hi Ric,

   Thanks for your comment.

   Could it be that our politicians need sponsorship for the next election campaign?

   Stefan

3. Jason Holden
   
   Said on January 19th, 2008 at 3:52 pm

   Not only Darling, but also the other architect of the continued onslaught against the small business and middle England, Brown has also played a pivotal role!

   Question is, how will the UK survive these two?

4. Robert Moore
   
   Said on January 22nd, 2008 at 11:04 am

   Northern Rock is the 5th biggest bank in the UK and took up the emergency funding from the BOE. That was what the BOE was designed to do. The fact that the Tax payer is guaranteeing these loans is no big deal. It just looks bad that a Labour Government appears to be supporting a big private company. At the end of the day it all depends on the housing market. A great deal is riding on it now…

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