Dude, WTF?
Four key points:
On another day of major development for the banking sector, here are the key points of the government's latest announcement:
• Banks will be able to take up government insurance against their expected bad debts
• The Bank of England will be able to buy stakes in companies in all sectors of the economy
• Northern Rock has been given extra time to repay its loans from the government
• The government is increasing its stake in Royal Bank of Scotland (RBS) to nearly 70% from 58%. RBS also said it was set to report a huge loss for 2008, with asset write-downs of up to £20bn.
Wouldn't a more accurate headline be "New plan to boost powers of the state at the taxpayers' expense"?
The Fart of Doom
1 hour ago
5 comments:
> The Bank of England will be able to buy stakes in companies in all sectors of the economy
Yields need to rise, not fall. This is insanity on a stick.
Mark, "New plan to boost powers of the state at the taxpayers' expense".
They're Labour, socialists and when did socialists ever have a sensible economic idea? GIven their history, how can you ever expect them to now or in the future?
Calm down. We are only 18 months into the first 5 year plan. It will all be fine.
Next up, The Great Leap Forward.
Throwing bundles of cash into the blast furnaces to meet our steel targets.
I know, I know. It's all so depressing isn't it? It doesn't help that it is absolutely useless too.
Oh balls. Actually it could have been Balls!
Point 3 is actually good. Delaying loan repayment is a good idea as it leaves NR with more capital to lend out - although this needs to go hand in hand with other measures that actually DO boost banks' lending!
1, 2 and 4 however look awful. Truly awful.
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