Taxpayers' £200bn to insure banks' losses

baby_boomer

The Telegraph

confirms that the government is not going to set up a "bad bank" to take on bad debts (partly because they can't be valued) but will insure the bad debts of all banks - including Barclays and HSBC which haven't taken government money to date.

The bill will be with the taxpayer for decades .

Yesterday the Telegraph suggested this could work out at £33,000 per taxpayer.

Such a large extra mortgage will also be a long term downward pressure on house prices.

lynzpower

Ministers hope their latest scheme will restore confidence in banks and increase lending levels. A source close to Alistair Darling, the Chancellor, said: "What Alistair has been totally focused on is removing the blockages from the system."

When do we think that the tax regime is going to start reflecting this?

We need to work out our escape plan

lil'H

Bbc news this morning said "MPs, banks and taxpayers all agree on one thing, that further borrowing is required to break the recession" or something like that. I nearly chocked on my poached egg. No one asked me, I'm a tax payer I don't really want to insure other people's debts. I've worked hard to be responsible for my own money and stay debt free. I'm no economical geneious but is there not a point whereby the government needs to stop printing money and realise that banking practices over the past few years were flawed, now there is going to be tough times whilst that corrects itself, and contsantly throwing our money at it indescriminately isn't going to prevent the adjustments that need to take place?

Sorry unknowledgeable rant over!

Dylanwing

How about easing the pressure a small amount by cutting back on excessive pay and bonusses at the Banks? As we own most of them, we can set a realistic 'market rate'.
The whole thing is quite staggering, the taxpayers seem to be a bottomless pit of money, but we are getting very little in exchange - It is clear that Banks have been somewhere between totally incompetent and fraudulent, and yet there is no effort to clean them up, and use them as an instrument to alleviate the effects of recession on 'hard-working families', plus those who skive a bit, do the bare minimum, don't have families, or can't get a job. Let's get a bit of value for money out of this.

baby_boomer

The Sunday Times suggests the lifeline will be £100bn+

Observer - Brown to risk £billions on toxic debt insurance
Interesting that Brown hasn't given any figures to his chums at the Observer.

The Mail on Sunday goes for £200bn

I wonder why Gordon has just left for Egypt to bestride the international stage?

lynzpower

"we will do whatever it takes"

ad44downey

Another day, another crackpot scheme by New Labour.

How much of our money have they got left to waste? Oh, that's right, there is no money left, they just borrow some more on our behalf

baby_boomer

For the record, £200bn is about 2p on income tax for the next 30 years.

[Although that does presume economic growth.]

alared

What really annoys me about all this is for years the banks have fleeced the public with their charges and sheer greed and made vast,obscene profits.

Now they are skint and we have to bail them out to the tune of billions.
A bit like paying a mugger after he`s robbed you.

amcluesent

'quantitative easing' to the rescue + some handy inflation!

alared

amcluesent wrote: »

+ some handy inflation!

I would like to see the days of inflation come back when the bank rate was 15% and you got 10% for instant access saving accounts.

BUT a decent house in a good area only cost you £40k, unlike today`s £180k, and crap interest rates for your savings.

Years ago politicians used to rant on about getting inflation down to Japan`s level of 1%.
Well it`s now happened and a fat lot of good it`s done us.