Hands up who's cynical about Gordy's new aid package for the banks?

[MrsThierryHenry]

here

Not so much that it won't do the trick, but that he's so far been woefully incompetent when it comes to helping Joe & Josephina Bloggs, but now that the banks are in trouble it's a different story?

Ohhhh, I think I'm probably rehashing an old thread from a couple of weeks ago. Age is clearly wearing my brain down to nowt.

capitalism=privatisation of profit, nationalisation of debt

(I didn't make that up!!)

Let's fist bump, sister! Obama style!

(I only learned that phrase this week, have been dying to use it!)

It's so true. Thankyou Margaret Thatcher.

Go girl! (thumps back)

And on that happy, bloodthirsty note, off I go to bed!

Have lovely dreams.

A few more details here, albeit not many. I'd like to know who is getting what. And I like the details of the caps on salaries.

news.bbc.co.uk/1/hi/business/7658277.stm

So let me get this straight... if health or education or anything like that needs money, we don't have it as a country.

Suddenly the banks go pear-shaped and there's 50bn lying around?!

Just who have we sold our soul to, to get this money? Or is it all a big confidence trick?

I think this is necessary - these are desperate times

But we could have avoided getting into such a mess if some common sense, even prudence, had been shown during the obviously unsustainable boom. But Gordy thought he had abolished boom and bust

so he'll bail out tosspots who lost all our money but he wont pay winter fuel allowance for disabled people or brings schools up to the level of private ones.
I'd like to see some of those hedge funds guys and bankers actually lose a yatch to two.

I meant to say "And I would like the details of the caps on salaries." I don't know if I like them because I don't know what they are.

Here are some details of the 'rescue' package: business.timesonline.co.uk/tol/business/economics/article4904620.ece

I don't know where this money is coming from (though I do realise that when you get into bilions it starts to become rather notional). But to balance the books this 50 billion must have come from somewhere else in the budget. Or has Gordy sold off the rest of our gold reserves on the sly?

Darling has been on Sky News saying that:

There are three legs to what we?re doing:

• First - we are extending the SLS at the Bank of England, allowing £200bn available.

• Second - helping banks recapitalise. Britain?s biggest banks have agreed to increase capital by £25bn. There is a further £25bn should they want it.

• Third - we have agreed to guarantee interbank lending.

Can you explain the first one please Upwind?

Callisto, I think it means that further £200bn will be made available by the Bank of England for short-term borrowing to provide liquidity to banks and building societies. But I only know what I've just heard.

More info available here

The Daily Mash sum it up nicely:

BANKS TO LEND YOU YOUR OWN MONEY

'THE government is to invest £50bn of your money in British banks so they can lend it back to you with interest.

The historic move is being hailed as a lifeline for the financial system as long as nobody asks too many questions.

Julian Cook, chief economist at Corbett and Barker, said: "The government will give your money to the banks so the banks can start lending you that money, probably at around 7% APR.

"Thanks to all the interest you're paying on your own money, the banks will make billions of pounds again and normality will be restored."'

It seems it is all about liquidity and the banks in question are solvent.Lets hope so.Amazing that this level of money is always avaialable for wars and to bail out these but hospitals and schools?

The Government's Press Release

they won't, Fio.

they'll do utter FA.

and this doesn't mean any bailout will work.

look at the US bailout. and now look at how their market has been doing the past couple of days since it was announced.

yeah, funny how there's $50bn for this because they tell you the sky will fall down otherwise, but there's not a penny for schools, school dinners, SN provisions, the NHS, roads, etc.

Actually the press release does say that they'll have government control over the remuneration of executives.

The problem is these execs will still get paid because without them who will run everything.Its not as if there are economic whizz kids in the govt who can step in.the same people will be at the top running things and gettinbg big bonuses

some buggers are about to get richer....

and why aren't there some resignations? Without the fucking golden parachute or whatever its called?
And given the execs were crap and got into this mess, why are we paying them huge salaries?