Friday, Oct 26, 2007

£20.6 billion and counting. When is someone going to admit that the treasury has backed an utter loser at the taxpayers' expense?

Times Online: Chancellor Alistair Darling puts pressure on Northern Rock to resolve crisis

It's not as if this situation is unprecedented - Japan allowed this to happen years ago with the creation of "zombie banks" that the government would not let go under. The result was two decades of economic contraction and a massive bill for the taxpayer. So our esteemed leaders in the UK have decided that we will be paying for Applegarth's largesses for decades to come, and Northern Rock will get off scot-free. That's called "corruption" when it happens in foreign countries, and the ECB may yet call it so too.

Posted by paul @ 04:09 AM (627 views) Add Comment

13 Comments

1. sovietuk said...

How many schools and hospitals could you build with £20.6 billion? Or dosen't it really matter when you can just flick a switch and set a printing press running.

Friday, October 26, 2007 08:31AM Report Comment
 

2. speculatorone said...

It's good to see Darling continuing the good work after taking over from Brown, acting in an honest and professional manner ensuring the taxpayers money is not wasted...................

Friday, October 26, 2007 08:45AM Report Comment
 

3. planning4acrash said...

Crossrail (UK's largest ever engineering project) 16bn, our new nuclear deterrent 15bn, the olympic games (biggest construction project ever) under 10bn. Bail out a lost cause bank which is probably owned by shi%ts who earned cash from speculation and contribute nothing to our economy (20bn). What the F%CK?!

But the ECB has been pumping in hundreds of billions into markets and the BOE has been prudent relative to USA and EU.

You know that things are belly up when the welfare state extends to covering risk experienced by bankers. The bank should have given full protection on first 32k of deposits (retaining some protection and giving investors incentive to assess risk and spread funds around) and left it at that. What happens if Barklay's or HBOS have problems? I shudder to think!

Friday, October 26, 2007 09:15AM Report Comment
 

4. confused76 said...

the west is heading towards a Japan-style crisis

Friday, October 26, 2007 09:47AM Report Comment
 

5. Ihopeitgoeswithabang said...

Quote Darling:
" However, he admitted that “there are certainly lessons to be learnt.” "

Really????!!!
What would that be then, not wasting tax payers money just to save face.
Although if NR is to go down the pan he is going to look more of a complete idiot than he already does.
That might be a lesson worth learning about himself.

Friday, October 26, 2007 09:48AM Report Comment
 

6. dugmug said...

Nearly £5billion borrowed in the last week. It was just shy of £3billion the week before, having risen from £2.5billion the week before that, I seem to recall. Worrying, exponentially increasing, pattern emerging here?

Up to £20.6billion already but it's OK - Darling has said they must sort themselves out by February!!!!!!!!!!!!!!!!!!! That's 14 weeks away!!!!!!!!!!!!!!!!! They'll have borrowed the whole £120billion value of their loan book by then surely?

I must be missing something here, as for an MP Darling has half a brain doesn't he? Can someone provide me some insight into how February can be soon enough?

Friday, October 26, 2007 10:38AM Report Comment
 

7. David Smith's Sub Prime. . . said...

I think the news will be quite interesting from now....

Friday, October 26, 2007 10:59AM Report Comment
 

8. David Smith's Sub Prime. . . said...

Wagers on?

November 14th?

Friday, October 26, 2007 11:09AM Report Comment
 

9. dohousescrashinthewoods said...

Well, if they have to cancel ID cards and road charging satellite tracking to pay for this (amidst falling tax revenues) I suppose there could be some benefit.

I heard Gordon Brown making hollew noises about civil liberties yesterday - was he a) looking for poll ratings, or b) putting up a patter as a prelude to cancelling the two most expensive items on the agenda? ;)

Friday, October 26, 2007 11:24AM Report Comment
 

10. dohousescrashinthewoods said...

I'm pretty sure we're in for recession as the best-case scenario though. As the snippet from another post said - "this is turning out to be even worse than us bears had been predicting"

Friday, October 26, 2007 11:25AM Report Comment
 

11. Seanb303 said...

depression here we come
http://www.gusmorino.com/pag3/greatdepression/

Friday, October 26, 2007 11:35AM Report Comment
 

12. Mark said...

the price of oil says it all..

recession is pretty near.. if the US goes down the road of R then we will skip along behind them

Friday, October 26, 2007 12:26PM Report Comment
 

13. shipbuilder said...

I'm sick of these useless benefit spongers taking my tax money......

Friday, October 26, 2007 01:37PM Report Comment
 

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