This was a fairly brilliant, and succinct, discourse on the current banking crisis in England and the USA. What we are witnessing are bank runs started by banks, not by retail depositors. If such banks have no trust in each other, why should anyone else trust them?

I do take exception, however, to the continual implication in the UK press that all this mess is somehow the fault of the Americans. While it may be generally true that we invented these exotic financial instruments, and that they do have a tendency to self-destruct without warning, most of the British banking problems seem to be related to homegrown investments.

Don Peter Mellon, Ennis, Montana, USA

Your last paragraph sounds like a public school headmaster telling the assembled pupils that he has discovered that the sixth form is playing poker!
"Name and shame" indeed!
I bet that that alone will bring the scurilous scoundrels to task!
Bravo, headmaster!

Richard A, California, USA

If the Noorthern Rock is solvent, as we are told by BoE,why then institutions have not come to its rescue in propping up its shares and increase the rock's market capitalisations? To me it certainly reflects the same lack of confidence as its depositors!! Now the rock is facing a double whamy of downward spiral!!

Andy Bakhai, Estepona, Malaga, Spain

First class article.
It is about time someone put the Northern Rock debacle into perspective and mentioned the banks' irresponsible behaviour in effectively walking away from a problem they should jointly be exercised to resolve.

RalphG, London, UK

The BoE should have split Norther Rock's assets up and sold them to the crocodiles in the banking market soup. This would have maintained BoE's credibility as a body.

The problem now is that BoE's reputation is going out of the door with every pound withdrawn by Northern Rock's savers. Worse still is that the BoE's refusal to raise interest rates at its last meeting was a misjudgement that has seen mortgage lenders raise their rates regardless of BoE's base rate.

What now if BoE's interest rate is further ignored by the market? Will it still retain its eyebrows in the heat of the market?

Edwin Thornber, Bucharest,

If other banks, who generaly know their business, are not willing to lend money to Northern Rock (NR), why should we investors feel comftable with lending them our life savings?

Why would NR's share price have slumped by more than half in the last 3 months, if the people "in the know" ie bankers, think this bank is a safe bet. Clearly it's not safe, and is upto it's kneck in subprime type mortgages.

I had lunch yesterday, with a good friend who had bought a flat in London last year, with a 120% mortgage from Northern Rock. She is married to an Australian, and they are intending to return to Australia next year, when their 2 year fixed deal runs out. She thinks her flat has increased in value by upto 20% over this last year. Presently they are breaking even, and if the houseing values continue to increase, they will leave as winners.

But if the old addage is true and "when America sneezes, we catch a cold" and house prices begin to tummble like it did back in 1989, what then?

Christian Midhage, London, England

It would help if the media calmed down and was less alarmist with its headlines.

Bill Rees, TRURO, CORNWALL

The lack of people in financial markets with a fundamental understanding of the instruments they develop and trade continues to be a real concern. Nearly twenty years ago I led a major project to advise an important sector of the financial markets on re-structuring the basis of their products and trading mechanisms. As a banker by original training, I was not well-informed in the particular markets I was starting to investigate. Three months later, having developed an expertise in the sector and computer-modelled it to death, I realised about 5 people in the country, in a market of 100-200 firms, had any depth of understanding the fundamental structure of their business.

Earlier and later experiences have persuaded me there is is a role for a light - yes, or none at all - regulatory interest here.

Colin Wells, London, UK