Saturday, September 15, 2007


I was in York yesterday and saw a queue just like this outside the branch of Northern Rock.

I don't begin to understand economics - as far as I can see, exactly the same amount of money is there as before, the same assets, the same investors, the same savers, so I don't see why boom turns to bust, it makes no sense to me - but I do see old-fashioned idiocy at work here. The company is apparently stable, but suffering from short-term cash flow. All these fools who are queuing to withdraw their money are simply exacerbating that problem for the bank. By taking this action they risk precipitating the very thing they are afraid of.

As writers, it never does to overestimate the stupidity of human beings.

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