The government is paying 400 billion pounds of tax payer's money to the banks.
Never mind the small businesses and the general public,they may drown in the credit crunch.
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The_Walrus
Pro - http://www.doctor-dark.co.uk
- 2008-10-09 @ 13:43:01
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safriz
- http://www.conspiror.blog.co.uk
- 2008-10-10 @ 13:36:00
he has to follow george wooky bush.
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technomist
- 2008-10-09 @ 15:50:53
Loath as I am to give brown credit for anything this seems good plan. They are not paying all that money to the banks.
Some of it is a fund which remains in government hands to guarantee inter-bank credit. If the credits work, it will never be used. If they are used, they will keep the economy moving and enable interest rates to stay down.
Some is being 'made available' to increase immediate liquidity, so the recipients can lend to other banks, and some is so also they can lend it to it businesses (i.e so business es can trade, and, as peoples' employers, pay their staff).
Some is a fund to be used by banks which are trying to comply with new regulations requiring them to increase their capital base if they can't otherwise comply by raising the capital by private means. If they call on the money, they will have to give the government preference shares in the banks in return, giving the government a stake in the banks. There will be conditions attached regarding how bank executives would be paid.
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safriz
- http://www.conspiror.blog.co.uk
- 2008-10-10 @ 13:35:29
lets see how much of all this trickles down to the general public.
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It will all end up in the pockets of the short sellers, just like last time. Old one-eye Brown never listens, never learns.