Friday, Dec 04, 2009

May reduce mortgage affordability and house prices?

Mail: £40,000 a family: Taxpayers' cash funds the £850billion bailout

"The extent of taxpayer support for Britain’s banks is revealed today to be £40,000 for every family in the country.
An official report concludes that bailouts, guarantees, insurance and loans offered by the Government and the Bank of England reached £850billion. Not all the cash has actually been spent, and ministers insist that taxpayers will see a return when the banks get back to profitability and the public stakes are sold off to the private sector".....maybe!

Posted by alan @ 10:33 AM (1493 views)
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10 Comments

1. timmy t said...

I make that £70.59 of my money that RBS want to give out in bonuses... as a reward for bringing companies around the country to their knees and requiring me to pay more tax in future. Theft.

Friday, December 4, 2009 10:53AM Report Comment
 

2. will said...

Our great Capitalist economy has lead to this, so maybe it's time for a fundamental change.

Friday, December 4, 2009 10:53AM Report Comment
 

3. str 2007 said...

They always talk as though RBS will return to profitability.

Let's just suppose (with it's current share price at 30-35pence, that the stock market takes a turn for the worse ( as alot of people are predicting. On the back of that the Bank of England are forced to increase interest rates due to outside pressure.

This all coinciding with the artificial stimulus (that this recent asset price growth has largely been based on) coming to an end.

Is it conceivable to anyone that against better competition RBS may make a loss and incur significant further right down due to bad debt over the next 2 years ?

Friday, December 4, 2009 11:02AM Report Comment
 

4. timmy t said...

str - what you talking about? We're better placed than any other developed country to weather the storm and come out of reces..... Oh, hang on, yeah you're right, time for the taxpayers to write off bad debt...

Friday, December 4, 2009 11:24AM Report Comment
 

5. a saver said...

Like I've said before, why isn't there rioting in the streets?
What kind of mandate do the gov have for p1ssing our money up the wall like this?
They could have just let RBS go to the wall and the FSA bail out depositors.
BTW, our suggestion of MEGALLOSS as a name for the merged LLOYDS-HBOS not very superbank certainly proved prophetic - for the taxpayer at least.

Friday, December 4, 2009 02:27PM Report Comment
 

6. paul said...

The main issue here (which str2007 alludes to) is that the government has put the taxpayer on the hook for making the banking sector profitable.

So by logical extension, the government has loaned our money to banks with the proviso that if we don't give more of our money to banks to make them profitable, our loan effectively becomes an unconditional grant.

Now if I said to a bank "I'd like a loan now because I have no money and if I don't make lots of money you'll just let me off the loan", the bank would tell me where to get off. But somehow, this is arrangement is fine when its public money and the bank needing a loan.

That's so wrong headed its almost comical.

Friday, December 4, 2009 05:45PM Report Comment
 

7. Smugdog said...

Wow, every so called "family" is owed 40k, get real, get over it, get on with it.

Friday, December 4, 2009 06:13PM Report Comment
 

8. smugdog said...

Wow, every "family" is owed 40k, get real, get over it, get on with it.

Friday, December 4, 2009 06:15PM Report Comment
 

9. Flungbean said...

http://www.thedailymash.co.uk/news/business/but-the-real-word-is-full-of-poor-people%2c-say-bankers-200912042283/

It's funny 'cos it's true

Friday, December 4, 2009 09:24PM Report Comment
 

10. This comment has been removed as it was found to be in breach of our Blog Policies.

 

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