Tuesday, November 3, 2009

Please Sir, can I have some more

£4,350 per family to bail out Britain's banks

As the new bail-out will have to be funded by government borrowing it can only be repaid through cuts to public spending or substantial tax rises over the coming years and despite consumers picking up the bill for yet more billions for the banks, experts said that the money would still not be enough to get them to increase lending to struggling home owners and businesses. So why is lending money to struggling home owners the answer to all our problems?

Posted by enuii @ 10:49 PM (835 views)
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7 thoughts on “Please Sir, can I have some more

  • Lending dosh to “struggling homeowners” is part of the reason we are where we are, a bloated financial sector got hit by market forces or reality if you prefer, some parts of this monster should have been allowed to wither and die, not pumped up with fresh funds, the truth is as a nation we just cannot afford the City and it’s institutions in it’s current form, I wonder when someone in power is going to realise this?

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  • The Alex cartoons in the Telegraph recently are beyond satire:

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  • £4,350 per family to bail out Britain’s banks

    What’s the link between this article and house prices?

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  • Those poor hard working famblees.

    I wonder how much they’ve received from the government directly or indirectly through family tax credits and unprecedentedly low interest rates?

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  • mark wadsworth says:

    They are mad.

    Total bank bail outs in the UK so far are approx. £100 billion, once you include all the bits and pieces.

    For that money, the govt could have just set up a new bank and told the existing ones to sink or swim. Don’t forget that a capital base of £100 billion would comfortably support the entire “good” lending on mortgages, to businesses, credit cards etc at sensible interest rates, who would all have long since remortgaged with the new bank, and depositors would have shifted deposits to new bank as well.

    The “bad” borrowers would have been stuck behind in the existing banks, so the losses would have been borne by shareholders, bondholders etc who might end up with 60p or 70p in the £1, so what?

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  • The Telegraph is once again trying to suggest that tax is paid equally by all families. This is massively untrue. Income tax is progressive and your marginal rate is proportional to your income. I don’t know what the actual proportions are but it’s been reported that the top 1% of earners pay 20% of the tax. This is because they take 20% of the wealth, of course – the income distribution is massively skewed.

    I’m not trying to make light of the situation – Mark W is absolutely correct that we could have done so much more with the bailout money that would have worked so much better – but the ‘average’ family will pay a lot less than £4,000. Assuming, of course, we can extract the amount of tax that the damned bankers should be paying, rather than letting them hide it through a ton of loopholes and tax havens.

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  • No, the cost of baling out the banks must not be met by gov’t cost cutting and tax rises for the populace in general.
    The cost MUST be met by grabbing the tender bits of the banks, squeezing hard until their pips squeek and not letting go until every last penny has been repaid…..with costs. Then and only then, can the parasites be let loose, but then in a very controlled way.
    This debt is not mine or yours.
    As kruador says, the banks have been feeding off the state via blatant tax avoidance for years……it must stop.

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