Taxpayers' £200bn to insure banks' losses

Sapphire

setmefree2 wrote: »

Generali my kids have gained massively from government spending in the last 15 years. For example, one of my kids was in a class of 19 pupils - compare that with the 40 in my primary school days! So it's not like they haven't benefited from government spending is it?

Let's make that crystal clear: they 'have gained massively from' the spending of taxpayers' money.

Moreover, the education system in this country is now much worse than it was 20–30 years ago – and not on a par with the education system of Poland (for example).

movingforward2010

this scares me, especially when there isnt any money in my area to get a NHS dentist! so unfair the banks get our money whilst we all suffer!

Generali

setmefree2 wrote: »

Generali my kids have gained massively from government spending in the last 15 years. For example, one of my kids was in a class of 19 pupils - compare that with the 40 in my primary school days! So it's not like they haven't benefited from government spending is it?

I hope your kids benefit just as much from the bank bailout as they're the ones that'll be paying for it.

bubblesmoney

since the govt is proposing some sort of an insurance scheme for banks etc, my understanding would be that the govt will expect a fee from the banks in return for insuring their debt. obviously no sane insurer would take on insuring such a lose-lose situation in insuring these debts. this is similar to buying securitized mortgages but in a different name, atleast to a layman like me. the mortgage securities market has disappeared hook line and sinker as no foreign investor with half a brain will invest in them. till now the mortgage securities market seems to have thrived because the foreign investors (fools) invested in these mortgage securities (backed only by nonrecourse mortgage debt) thinking they would be value and that teh regulatory autnorities in usa would be prudent. after the madoff scandal any shred of credibilty in the regulatory authorities should have evaporated in foreign investors. same applies to regulatory authorities here who allowed fund of funds to invest in madoff funds without investors knowing he was the manager. so obviously quite a few people turned a blind eye when billions were being defrauded. so looks like the govt becomes the insurer and can only make good their promise by printing money as there is no way they can payout such huge amounts with empty coffers.

anecdotal info from people who work in banks etc it looks like defaults in loans / credit cards etc is creeping up, when this crisis tips over more people will be getting repocessed and supposedly prime loans whose credit rating was good because they had credit (stoozed) of thousands of pounds evaporated overnight when they couldnt stooze anymore. suddenly even supposedly prime mortgage customers default and then the real fun begins.

yikes. dont know whats going to happen but i dont want to have a mortgage for much longer if the rates creep up suddenly. have been over paying my mortgage like hell. atleast i decrease my capital outstanding a lot faster than when interest rates are higher.

wouldnt it be easier for this !!!!wit govt to let the bad asset holders to go bust rather than take on their bad assets onto the taxpayers books. instead if they used the present 200billion pounds on offer for this scheme and instead used it as seed capital for forming new banks (without any bad assets on their books) then as per 10% capital adequacy leveraging these banks could in effect lend to really prime customers hopefully to the extent of 2 trillion pounds and still be safe. that should ease the credit situation for prime customers. dont know if i got this right but as a lay person the present policy seems daft.

shaven-monkey

Is there a reason to stop the credit bust?
The profits were all private, the losses will all be private. What's wrong with that?
The price of borrowing goes up and people who aren't credit worthy can't get loans... Isn't that how things should work after it's discovered that the lending market was so divorced from reality that it threatens to destroy the world economy completely.
So... Why bail out the banks?
Because it's important to deny the existence of the thoroughly predictable correction until after the next general election?

bubblesmoney

shaven-monkey wrote: »

Is there a reason to stop the credit bust?
The profits were all private, the losses will all be private. What's wrong with that?
The price of borrowing goes up and people who aren't credit worthy can't get loans... Isn't that how things should work after it's discovered that the lending market was so divorced from reality that it threatens to destroy the world economy completely.
So... Why bail out the banks?
Because it's important to deny the existence of the thoroughly predictable correction until after the next general election?

because they believe in privatising the profits and socialising the losses.:mad:

alared

The government and mainly G Brown is to blame for this banking crisis.
They quite happily sat by and let and even encouraged it to happen by not tightly controling and regulating the banks.
They raked in and wasted all the revenue from the property bubble and all the other conjured up taxes they invented.
Now the banks who were like drunks in a casino sit back and laugh at Brown and more or less say "bail us out or the country goes under"
They`re laughing at you Gordon and holding a gun to your head.

setmefree2

Sapphire wrote: »

Moreover, the education system in this country is now much worse than it was 20–30 years ago – and not on a par with the education system of Poland (for example).

What a load of rubbish:rolleyes:

setmefree2

Generali wrote: »

I hope your kids benefit just as much from the bank bailout as they're the ones that'll be paying for it.

TBH I don't really understand your anger towards the government - from where I'm sitting it's the industry that you were in that has done this to us and you seem to be less angry towards them? My children will be paying for the wrong doing of some fat bankers who are currently sitting on some sunny island with their big pots of money...


Not that I blame you personally, of course.

setmefree2

alared wrote: »

The government and mainly G Brown is to blame for this banking crisis.
They quite happily sat by and let and even encouraged it to happen by not tightly controling and regulating the banks.
They raked in and wasted all the revenue from the property bubble and all the other conjured up taxes they invented.
Now the banks who were like drunks in a casino sit back and laugh at Brown and more or less say "bail us out or the country goes under"
They`re laughing at you Gordon and holding a gun to your head.

OK - so the bankers did nothing?