Do you ever wonder if Gordon Brown has too much money?

[AtheneNoctua]

WTF, as if Norther Rock wasn't bad enough... let's just sell out the taxpayer to whole banking industry.

Banking industry bail out

Drop their bonuses? Don't be silly.

If banking is a social good, why are bankers allowed to act like gambling addicts in a casino? And how come they get fat bonuses in rising markets but don't lose out in falling markets? Looks to me as if the public carries all the risk while bankers get all the rewards.

yeah, I know Something Must Be Done but is galling to see bankers demanding WE bail them out for THEIR stupidity - what are they going to do in return for raiding our purses?

That's the problem I have too. I can't see anything that says what the banks have committed to. I see guaranteed bonds going their way whil "potentially risk" investment are taken on my the government us. What exactly is the deal with the banks? And why has it not been publicised? Probably because we would see how fair it isn't.

There are no guarantees for the taxpayer -- only for the banks.

I know they have lived it up in the good times and now that it has come crashing down we bail them out.It makes no sense at all.and it will do nothing for mortgages as any new loans are not allowed to be traded in this way and so will have to be top notch quality so criteria could get even tighter.

So, basically, the last thing you want to be is a tax payer who doesn't own a property.

Oh goodie.

Nightmare for taxes and inflation

All true but still not seeing any other options suggested here.

The option is that I want to know what the banks are doing in return for this liquidity. This appears a one way deal with no commitment from the banks. What is in it for the tax payer and what will it cost? Somemore information please Mr Brown and Mr. Darling. The hush hush makes me nervous. What don't they want to tell us about this deal? And has the deal already been made?

I think its a done deal tbh.But I agree they are getting off scot free for their over zealous lending in teh alst 10 yrs but like margo says what is the alternative?As long as this isn't seen as an opportunity to re ignite the housing market rises.Although this seems unlikely.It is vital to get the banking system moving again for everyones sake.Although I was wondering if they may borrow against these bonds and then use the money not for mortgage lending but buy into other assets which aren't falling and try to rebuild their business that way?Its a mine field

'It's easy to be outraged by this but how would you steer the banks through this problem without causing thousands of people to lose their homes and people to be made redundant? '

So a taxpayer who hasn't been able to afford property get to subsidise people who borrowed foolishly, basically a government subsidy to help them own a huge asset whilst the rest of us are denied this entirely?

you are right expat.The banks are being bailed out and now they are to make provision for people who cannot afford their mortgages to have special terms like payment holidays etc while the cautious who have waited suffer.Although take comfort in knowing that everyone pays eventually.If you cannot afford your mortgage at historically low rates you cannot afford it full stop.

And what are we going to do when a whole generation of people like Expat and me are ready to retire but we have still not managed to pay off a mortgage? The pension crisis ain't seen nothin' yet. Where are all these people going to live?

And if Gordon really wants to help people who can't afford home, he should give THEM money, not the banks. Let the market drop, enable the BUYERS to keep the market moving and we would be in a more stable place.

I am of course no economist and could very well be talking tosh. But, I can't imagine how feeding money into the proven to be irresponsible banks could take us somewhere positive.

Oh I should just shut up and do my work, so I can fund someone elses house and keep the market inflated so I can continue to throw all my money away on rent.

I agree if the market was just sacrificed they would have the revenue from stamp duty and if houses were cheaper people would have more disposable income and the econmy would pick up

Let's see, what is the alternative to 'thousands of people losing their homes' because THEY borrowed foolishly and beyond their means to pay a stupid price for a home they don't even own?

Oh, I know! Sting the taxpayer for it!

I know, let's take a 62-year-old Scottish man who worked from the age of 14 after his father left the family so he left school to help support his mother and sister, working first as a dockman unloading ships rain or shine, then as a groundskeeper for BT. A man whose company pension was raided by fat cats and was worthless when his diabetes, heart condition and hypertension forced him to retire 'early' two years ago.

And who now works part-time as a church groundskeeper and delivers papers.

His tax went up from £21 to £39/week.

All to bail out a bunch of fools.

Now tell me he has no reason to be outraged.

Borrow foolishly, gamble foolishly, why should anyone bail you out?!

Least of all the poorest folk?

And if the banks acted this foolishly already, you think they're going to give a toss about billions of pounds worth of taxpayer money?

Are they f*ck!

Keep going, GB, the SNP and Tories are rubbing their hands and watering at the mouth.

Brilliant Steve Bell cartoon in the Guardian today on this subject. Although I'm not sure that this package is all bad under the circumstances. Mervyn King seems to be very hot on moral hazard. As he should be. More info here.

Am now erading that many utilities companies are in it too They have seen the bail out package and are coming out cap in hand!!!!!!!!!!This country is a mess and the same people at the bottom end of the financial ladder will be ***d first!

reading

Meanwhile, the utility companies keep posting record profits.

I've kept in mind noddy's line about privatising profit and nationalising loss.

I do agree that the package isn't all it seems for teh banks and for that reason many won't go for it and will have to raise money elsewhere .We should really take to the streets but I am too old and complacent now but surely the younger generation should be incensed1

Let's take to the polls instead.

deffo!

Steve Bell on the bailout

Says it all really...

...mind you, so does this...

DARLING TELLS IDIOTS TO HELP THEMSELVES

CHANCELLOR Alistair Darling has this morning opened the vaults at the Bank of England and urged Britain's idiots to help themselves.

The government agreed to the unprecedented £50 billion giveaway after a period of intense lobbying by a group of people who are terrible at running their businesses.

Mr Darling said the move would boost the economy by allowing banks to restart their idiotic policy of lending money to idiot borrowers.

Wahey! I'm off to borrow irresponsibly.

Damn, I don't know what I was waiting for, being honest.

Now that I know the taxpayer will bail me out, why not jump on the mortgage bandwagon and stuff this rent stuff.