are we (the british Taxpayer!) going to benefit at all from the government bailouts?

chucky

adr0ck wrote: »

robert pestons blog on this can be found here

http://www.bbc.co.uk/blogs/thereporters/robertpeston/2009/02/weve_lent_185bn_to_banks.html

seems the banks paid a 1.15% fee for the loans

it's typical Peston because there is no mention of the length of the loan or if any interest is involved. he always tells his stories in the worst case scenario rather than giving all the info and grab his big headline for the day.

he also forgets to go into detail on why the value has dropped so much; again to get his headline.
it's the mark-to-market valuation (which quite possibly is all wrong anyway) but he doesn't even say this is due to their value being different.

an example of it is here
http://www.ft.com/cms/s/0/24446364-c882-11dd-b86f-000077b07658.html

“If you try and find a transaction on which to base a valuation of private label mortgage-backed securities, you will find spreads between bid and asked of two, three, or four thousand basis points. It offends common sense to use a market valuation such as that. It is not meaningful and transparent. It is an extrapolation of very doubtful data.”

ManAtHome

Many banks will need a bail-out for a few years - a grand or two extra taxes for the next 10 years or so should sort it.

Wookster

I'd say the biggest benefit so far is that our financial system remains intact i.e. you can still go to Sainsbury and use your debit card to pay for food.

If the Bailout Part I was not done then all you'd have is the cash in your pocket when the entire financial system collapsed. That probably wouldn't get you very far.

All the other bailouts (Bank bailout part II, Car industry bailout) are a waste of money in my view.

Woby_Tide

Dylanwing wrote: »

Basically, we have slung heaps of cash at the Banks, and got s*d all in return.

reverse the thinking and consider if they hadn't been given heaps of cash, you'd still have sod all, but they'd also have taken a lot away in terms of how the economy hangs together. The heaps of cash has maintained a status quo.

If I pay to repair a leaking roof, I'm not getting anything in reality, just avoiding my roof falling in the future

elaina79

MarkyMarkD wrote: »

The £185bn is a loan. It bears interest at a (relatively) high rate - in excess of LIBOR, which is in excess of Bank base rate. It will ultimately likely be repaid, because banks will be able to borrow the money elsewhere cheaper, so they have an incentive to pay it back relatively quickly.

(But the fact it's expensive means that it's not as effective as it should be in terms of encouraging banks to lend - but that's a different story).

Claims that it's a £33k tax on each individual are rubbish. It's a LOAN, not a GIFT.

So the £185bn is a loan with a high interest rate. But when the bank come to paying back the money that thas been given to them by the taxpayer, they will end up charging us bankers more for their products. So in effect won't we just be paying twice and getting naff all back.