So can someone please tell me where this £500 billion has come from?

[Callisto]

Because I don't understand. Has GB borrowed it from somewhere and if so where?

The councils will not be covered he has said that.personal savers will.kaupthung has just been taken into public ownership this morning That was martin lewis' top tip he will get a roasting from his fans. this country will be bankrupt we are in unknown territory I get all my info from someone who works in teh city and writes for the telegraph.he advised me to sell up last year and also told me about nirthern rock months before it went and tbh I didn't really understand what he was on about.His take now is that next year will be shocking.Interest rates will eventually soar as will taxes council tax inflation.It will be interesting to see what wages do.This money is being made available just to get the banks on an even keel and encourage them to start working with each other again but it hasn't worked anywhere else in the world.japan had exactly the same scenario as us years ago and interest rates there are 0.5% houses are worthless and inflation soared.I am terrified tbh was happier when i knew nothing .We have bought a house with our savings as we couldn't decide where to put the money adn no one could assure us!

so what happens if the coucils aren't covered? No more street lighting, SN education and waste collection?

no rocketing council taxes in the boroughs involved which will open up the floodgates for increasing this tax everywhere else too.This govt need revenue so don't be surprised by where they try to get it.

Down the back of the sofa?

But when did he say that councils won't be covered? Because it certainly wasn't on C4 news last night and that's not what's being reported in the press today. He has said that councils are in a slightly different position to retail investors, but has not definitely said they won't be covered. Presumably he's waiting to find out how many of them are Labour controlled

I am quite fiscally challenged but the way I understand it is that we dont actually have this money .

The govt spends more than it taxes...the result being it always has a shortfall in actual cash.

This shortfall is known as public debt. From what I can gather the money promised to the market is just increasing this debt!!

Noddyholder, you've made me very scared. Hope your friend is wrong. I was feeling okay about my mortgage being fixed rate until next August when it goes to tracker thinking that base rate would remain low.

oh dear

I wonder if there's any way that George Osborne could have known about the potential risk to councils before he made his speech pledging to freeze council tax for two years?

So now our council tax rates are going to shoot up but we'll all remember the Tories would have frozen them?

I don't think we can feel anything other than worry when the state has had to take on board virtually the whole banking system.They are still not willing to say the bonuses will stop altogether though and are still wittering on about rewarding achievement etc.What do they mean by this?

I'd like to see the traders, investment banks and private equity top dogs who have brought all this about swinging from the lampposts, tbh.

It seems like they aren't going to be punished because they are the ones who know how to run teh economy and the govt need them?Does that sound right?otherwise surely something would be done

I think the deal is more about keeping the system moving than magically finding a wad of money to give to the banks. The alternative is that the banks don't lend money to businesses, business cash flow grinds to a halt, people loose their jobs and there is less tax revenue for the government both from businesses and individuals. Either way hospitals won't get built and there will be less funding for education. As people have pointed out, the belief that money can be spun out of the ether indefinitely is what got everybody into this mess, and there will be a cost to pay somewhere. However, perhaps this way the government will at least be able to stop everything from grinding to a complete halt.

I agree this will stop it grinding to a haly but it won't be able to operate as it did before and that was what made us all feel prosperous Debt basically.take that away and in reality we will all have to live in a very different way for years to put this right.

Massive sea change a-comin, that's for sure. You'll all soon be wishing you churned your own butter and made your own clothes from tree bark like I do.

i have made soup twice in 2 weeks Does that count?

I jest, naturally, but still, I do often wonder nowadays how much we take for granted will soon be just a story we tell the grandchildren.

While we sit round an open fire in the strawbale roundhouse.

So my child trust fund worthless then?

Inconinentia - according to James Lovelock (The Revenge of Gaia), this financial crisis will look like a mere blip compared to the true catastophies we will all soon be facing when oil and food run out and global warming really kicks in.

I heard Alastair darling try to claim commidity prices were falling only to have Jon snow tell him that is only because we are in a recession and demand ahs fallen.

I just don't see how the councils can be covered. From where? Iceland are going to be strapped enough refunding the £16k for ordinary savers.

Everyone is going to have to live a little differently aren't they? I imagine my mother will be stocking up on tinned goods and loo roll again.

Lazytown

I'm with Callisto on this, when peak oil really bites this will look like a walk in the park

What is money ? It's paper and they can print some more.......