Haven’t we given them 700000 billion squillion quid already*. Pretty much none of which has made its way through to the ‘real’ economy in any way, shape or form. Though enough of it seems to have gone out in the more usual form. Bonuses.
From what I’m reading, this is the same as last time. So there’s no actual binding obligation for them to lend to business. Just their ‘word’, which has been worth a great deal so far. Business lending has plummeted since they recieved the last 2 bail outs
Are Mervyn King and George Osbourne the two most stupid men in the country? Do they seriously expect those bloodsucking parasites to behave any differently this time around, with no written guarantees? It defies belief!
Am I the only one who thinks this has a ring of General Melchet
We’re going over the top again sir?
Yes. The Germans would never think we’d be stupid enough to do it again!
* the actual figure is a mere £325 billion, apparently
The change of rules on capital adequacy and a lack of appetite to recapitalise from the equity market means that the treasury has had to do it all. Project Merlin was never going to work as the banks could not promise to lend AND recapitalise at the rate at which the rules have required of them at the same time.
Not seen any detail of the latest scheme, but it would need to bypass the capital adequacy constraints to work or it’s just Merlin by another name.
I still think the government should have underwritten loans made by the banks with cash so that banks could have kept the liquidity up, but not had to hoard reserves.
I am sure we can do more for bankers than this…C’mon we are all in this together…I know I got a terrific bonus this year of another wage cut so lets dig deep and help out those spiffing chaps for all they have done for us.
The basics of all of this confuse me. Where does this money keep coming from and if we had all of these vast reserves prior to this “downturn” why didn’t we get on with sorting some of the world’s largest problems?
Need to try something different.
Stick the lot on England to win tonight at 6/5, or half on Andy Carroll as first goalscorer at 7/1 if we’re feeling lucky, with the winnings to be shared nationally as a tax rebate.
Let everyone know they’ve got a stake in this country, and the players have a real responsibility. Let a different bunch of overpaid stars have a chance at saving the country, can’t do any worse than the bankers.
Then it might start to feel like we’re all in it together.
Your looking at it from your position, and to be frank..the banks and the government don’t actually GAF if you live or die..they’re getting their big salaries and bonuses and HUGE pensions, from their position it’s marvellous and your just a whinging lefty communist…
While on the topic, I’d just like to remind everyone that the VAST majority of people who work for banks are ordinary, hard-working people who are just making their way and earning reasonable money, and not getting enormous bonuses.
Would it not be simpler/more efficient to cut out the middle man here? Rather than going through the charade of the government having to collect our taxes, give the money to the banks and make them pretend they are going to lend it to businesses, we could all just set up a direct debit that goes straight into Fred Goodwin’s personal bank account.
have any of you actually looked into how or why the banks were able to get away with such ‘wrecklessness’?
do you realise how much they held up the economy previously, and actually still do?
there’s plenty of information available out there on the very nature of money creation and banking. it makes for very interesting reading/watching.
IMO, If the governments main aim in bailing out the banks was to prevent us from all loosing our savings, surely it would’ve been cheaper for them to simply pay us our savings? (the figures suggest so, by a country mile).
But no, the staunch tory bashers are right, we should simply borrow more money to dig ourselves out of this hole. Keep borrowing billions until its all over..
But no, the staunch tory bashers are right, we should simply borrow more money to dig ourselves out of this hole. Keep borrowing billions until its all over..
Whereas the Tories are currently doing…..?
But no your right, current plans are working brilliantly, let’s plough on.
Like any attempt to print money it resulted in inflation, which was presumeably the intention – if nothing else works try to inflate the debt away. I expect this lot will go the same way.
the money?
it’s created electonically with a few keyboard presses and a mouse click.
seriously, look it up. theres grreat stuff available on youtube
You can find out on youtube how to create money with a few keyboard presses and a mouse click ? It certainly sounds like great stuff to me – I’m surprised more people aren’t doing it.
If all the worlds major economies are skintipoos then who are they borrowing it off, and where did they get it?
Not everyone is skintipoos*. The Chinese are running massive trade surpluses and need somewhere to invest it. They must actually own half the US economy by now. Which comes in handy when telling people to STFU about your human rights record, for example.
And a lot of the Germans recent trade surplus was invested in property development in Southern Europe. Which has been a resounding success, I’m sure we’ll all agree
Instead of giving money to the banks to balance their unscrupulous books, they should give it to small businesses and indviduals, particularly the less well-paid, to spend. Difficult to administer, granted, but that’ll do a hell of a lot more for the economy.
Why don’t they give the money to a bank that we own. Then make them lend it and start a bank lending war.
Because when that bank that we own starts making horrendous losses on badly priced delinquent loans you will be first on your soap box demanding who’s stupid idea it was?
Money leant by treasury to banks is not “spent”. We, the taxpayer still own the debt (the benefit of it, not the obligation). We get it back. Money leant to punters who dont all pay it back mean we get back less than we leant if we dont charge enough interest for it (i.e. try and unilaterally instigate a lending war at the wrong price)
Anyway, it’s all a diversion. As said above, it’s just a ruse to inflate away the value of the nations’ debts. It will do more for our debt reduction than the paltry attempt at real cuts in gov spending.
How about, for once instead of bailing out the banks and seeing little or no returns on that cash, give the citizens the money directly.
Population of UK is what, 65 million give or take.
Instead of giving £80bn to banks who will squander it, give every UK national £1bn. 15bn saving and imagine the spending, the UK economy would then go through the roof would it not?
that’s why our economy was in a decent state before Brown helped screw it up.
Well it obviously wasn’t. It’s now extremely clear that the economy had an inbuilt self-destruct mechanism. Gordon Brown essentially did nothing to the economy other than give the Bank of England “independence” to set interest rates.
that’s why our economy was in a decent state before Brown helped screw it up.
Yes Gordon Brown caused the recession all around the world. I think we all need to realise though that most of what any government can really do to affect the economy is faffing around at the edges. I do wish we didn’t have to bend over and take it so enthusiastically from the people who really control the economy though.
Socialise the debt, privatise the profits. These people believe in a free market economy only as far as it suits their naked self interest.
Trying not to bite, but you’re a phenomenal troll. Just what in blue **** do you think a Labour Government would be doing?
Um… I think he may have been making the point that the Tories are doing exactly what everyone slags off Labour for.
Simple – as is usual, upon retirement George & Mervyn will one day become directors of the banks that this money will be going to. They need to make sure the banks have enough money to cover their salary and bonuses, so are taking pre-emptive measures to ensure this is the case.
Population of UK is what, 65 million give or take.
Instead of giving £80bn to banks who will squander it, give every UK national £1bn. 15bn saving and imagine the spending, the UK economy would then go through the roof would it not?
Just what in blue **** do you think a Labour Government would be doing?
A Labour government would be doing the same thing ? This Tory government is simply doing what a Labour government would be doing ? Tories aren’t any different to Labour ? WTF ? Can this be true ? 😯