Saturday, June 16, 2012

Playing silly buggers with our money

I just wish politicians could get it through their thick skulls that when they give away money to shore up failing projects that it isn't their money and they shouldn't be doing it.
BUSINESS bosses, economists and MPs warned yesterday that plans to pump up to £140billion into banks to get them lending may not work and could be costly for taxpayers.
Some fear millions of Britons could end up carrying the can if banks make risky loans which then go bad.
Bank shares jumped in early trading after Chancellor George Osborne and Bank of England governor Sir Mervyn King unveiled the package.
Two separate schemes, one to lend at least £5billion a month to businesses and another of up to £80billion over 12
months, will be offered to help banks struggling with the rising cost of borrowing on the open market.
Both involve banks swapping their assets temporarily for Bank of England loans on condition they maintain or increase lending to firms and families.
For one thing if the Eurozone as predicted goes tits up then this money will be lost, it will take a lot more than £140 billion to stave off the sort of damage that will do to our economy as the banks involved will lose billions due to toxic debt and dodgy loans anyway. What the politicians ought to be doing is rushing through a bill to separate the investment arms of the banks from the savings and public use of the banks. This is something they'd planned to do around 2020, but it's becoming increasingly obvious that this measure needs to be put in place now to allow the dodgy investors to go to the wall without taking the rest of the bank with it. Particularly with our cash in their grubby hands.

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