So, going against your original post I think, you're now saying that the profits should be poured back into services etc. rather than paid back to tax payers.
The government doesn't have money. It's all taxpayers. Exactly how much of the debt is owed by the Tories or labour?So by saying taxpayers, I mean the uk as a whole. I absolutely mean (and have done the entire thread) that the money goes back into the pot/hole so that we as a society can benefit.
So I think your beef is with the goverment, not the banks?
Well both governments actually. I thought that was obvious, hence questions around public consultation.
So jambalaya... Ultimately we should be thanking the banks for giving us this unique investment opportunity?
So jambalaya... Ultimately we should be thanking the banks for giving us this unique investment opportunity?
No of course not. What happened was a colossal failure of certain bank's management and of regulation.
@mefty, loans could well have T&C which say the loan is potentially repayable a the lenders option in the event of bankruptcy for example. I was made to repay a mortgage 12 months after I got it as the lender decided to exit the business, it was in the T&C small print that they where allowed to do so at 3 months notice
The direct cost to the taxpayer is the cumulative annual cost of servicing the debt raised to cover the bailout, say, £5bn per year plus the cost of any support we are not expecting to be repaid, plu/minus any loss or gain on the sale of equity.
There are also the indirect costs, the downturn saw a massive increase in the defeciit, that has prob cost £200+bn over the last 5years. Finally there may also be the costs of any increase in the costs of general borrowing if UK is seen as a more risky borrower
In total that is ####loads in my estimation
In terms of individual mortgages, ask someone who had one with Northern Rock I guess. But I think the mortgage book is sold on with same T&Cs. I think it would be breach of contract to demand full and immediate repayment
What happened?
Joe Public got shafted and those who benefitted most (Bankers mainly, but also Politicians) continue to benefit and tell us how it could've been far worse if we'd just let them fail...
Prove otherwise.
@br Joe Public benefited hugely over the prior years.
@olddog - you say "say £5bn per year", I take it you guessed this (at 2% implies £250bn of additional debt) ? Most of the headline figures for banking support (the ones in the trillions) refer to the maximum potential exposure for the asset protection programme which has actually been very profitable as the total amount of claims has (as far as I know) been zero ! We would have had an economic downturn even if every single UK bank was unaffected as the scale of the crises in the US was so large
