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Car Forum / BMW Cars / October 2008The British Bank Bailout explained in laymans terms - so simple really its a wonder the US haddn't thought of it first!
The Bank Bailout explained BANKS TO LEND YOU YOUR OWN MONEY 'I got confused' THE government is to invest £50bn of your money in British banks so they can lend it back to you with interest. The historic move is being hailed as a lifeline for the financial system as long as nobody asks too many questions. Julian Cook, chief economist at Corbett and Barker, said: "The government will give your money to the banks so the banks can start lending you that money, probably at around 7% APR. "Thanks to all the interest you're paying on your own money, the banks will make billions of pounds again and normality will be restored. "After a few years of this the government will cash in the bank shares it bought with your money and use the profits to build a huge f**king dome somewhere." He added: "In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot." Chancellor Alistair Darling said the decision had been taken in tandem with the banking industry, adding: "They used a lot of dirty words I'd never heard before and one of them had an angry looking dog." Meanwhile, Emma Bradford, a sales manager from Bath, said: "Why doesn't the government just give my money to me so I can buy stuff from businesses who will then make a profit and put it in a bank?" But Mr Darling insisted: "Shut up."  SignatureSir Hugh of Bognor The difference between men and boys is the price of their toys. Intelligence is not knowing the answer but knowing where and how to find it! Hugh Gundersen hsg@h-gee.co.uk Bognor Regis, W.Sussex, England, UK Some people -- incl BBC 2 Newsnight participants the other night -- added a zero and are speaking of 500bn quid, which makes it bigger than the US bail-out. And today in the Sunday Times they mention GBP 400bn in one article. Well, as it's all silly money anyway, who cares...?... I note that Our Dear Leader decided to invoke anti-terrorist legislation to squeeze the Icelandic government. Doesn't it make you feel great to be British? DAS To send an e-mail directly replace "spam" with "schmetterling" --- > The Bank Bailout explained > [quoted text clipped - 34 lines] > > But Mr Darling insisted: "Shut up." I wonder how many people realise the all this money people are talking about does not EXIST. Its all a 1 or 0 in a computer memory somewhere or a spot of ink on a bit of paper - it's not real. I doubt if anywhere near a 1/4 of the money in the world is real and tangible. Hugh >Some people -- incl BBC 2 Newsnight participants the other night -- added a >zero and are speaking of 500bn quid, which makes it bigger than the US [quoted text clipped - 51 lines] >> >> But Mr Darling insisted: "Shut up." SignatureSir Hugh of Bognor The difference between men and boys is the price of their toys. Intelligence is not knowing the answer but knowing where and how to find it! Hugh Gundersen hsg@h-gee.co.uk Bognor Regis, W.Sussex, England, UK > I doubt if anywhere near a 1/4 of the money in the world is real and > tangible. Never has been since leaving the gold standard. Signature*Cover me. I'm changing lanes. Dave Plowman dave@davenoise.co.uk London SW To e-mail, change noise into sound. > The Bank Bailout explained > [quoted text clipped - 11 lines] > will give your money to the banks so the banks can start lending you that > money, probably at around 7% APR. They will lend money to the banks, and presumably charge interest. They will want the princple back > "Thanks to all the interest you're paying on your own money, the banks > will > make billions of pounds again and normality will be restored. Effectievly those who need to borrow money now will pay interest to the rest of us. > "After a few years of this the government will cash in the bank shares it > bought with your money and use the profits to build a huge f**king dome > somewhere." > > He added: "In case you hadn't already worked it out - the entire global > financial system is predicated on the assumption that you're an idiot." He was speaking to Chancellor Alistair Darling - right? At the beginning of this mess (last September) the UK had a problem at Northern Rock and an idiot let it develop into a full blown run - something not seen in the UK for 150 years... > Chancellor Alistair Darling said the decision had been taken in tandem > with > the banking industry, adding: "They used a lot of dirty words I'd never > heard before and one of them had an angry looking dog." > > Sir Hugh of Bognor The trouble is that whilst Brown and Darling have presided over chaos in the UK and the pound has slid 10 to 20% to lows against the Dollar and Euro, he now has a scape goat in "greedy Wall Street bankers" for causing this calamity. So they caused the UK housing bubble, the problems in UK govt. finances etc. etc. - no I don't think so. Whatever it is a lot of banks got into handling US brown-coloured loans ("sub-prime") via securitised vehicles and found out that they are truly brown-coloured. Bradford & Bingley's problems seem home-grown since its borrowers are behind in replayments and/or defaulting at a relatively high rate. Brown-coloured loans based on the housing bubble. What I don't understand now is why HBOS is to be rescued by the state when Lloyds TSB is supposed to buy it... oh yes, Lloyds is on the rescue list as well... DAS To send an e-mail directly replace "spam" with "schmetterling" --- [...] > The trouble is that whilst Brown and Darling have presided over chaos in > the UK and the pound has slid 10 to 20% to lows against the Dollar and > Euro, he now has a scape goat in "greedy Wall Street bankers" for causing > this calamity. So they caused the UK housing bubble, the problems in UK > govt. finances etc. etc. - no I don't think so. > Whatever it is a lot of banks got into handling US brown-coloured loans > ("sub-prime") via securitised vehicles and found out that they are truly > brown-coloured. Bradford & Bingley's problems seem home-grown since its > borrowers are behind in replayments and/or defaulting at a relatively high > rate. Brown-coloured loans based on the housing bubble. So were Northern Rock's but even more so. > What I don't understand now is why HBOS is to be rescued by the state when > Lloyds TSB is supposed to buy it... oh yes, Lloyds is on the rescue list > as well... HBOS is worse than even Lloyds thought. Not sure about LTSB, except they probably need a leg up to digest HBOS. The funny thing is that the Scottish banks used to be reknowned for the high liquidity ratios and financial conservatism. OTOH RBS buying Nat West several times its size was probably a portent that they were biting off more than they could chew. So will it affect BMW sales? > DAS > [quoted text clipped - 7 lines] >> this calamity. So they caused the UK housing bubble, the problems in UK >> govt. finances etc. etc. - no I don't think so. >> Whatever it is a lot of banks got into handling US brown-coloured loans >> ("sub-prime") via securitised vehicles and found out that they are truly [quoted text clipped - 17 lines] > >So will it affect BMW sales? Probably - If the buyers can't get loans and that includes the leasing companies that can write the cost off over 12 months as a business expense and the users - lessee can also write off every payment and claim VAT who actually pays for the bloody car - the f**king taxpayer through lost revenue and now we are losing more ---------- Q. Shall I take all my cash out of Nat West and stuff it under the bed? Hugh >> DAS >> [quoted text clipped - 7 lines] >>> this calamity. So they caused the UK housing bubble, the problems in UK >>> govt. finances etc. etc. - no I don't think so. SignatureSir Hugh of Bognor The difference between men and boys is the price of their toys. Intelligence is not knowing the answer but knowing where and how to find it! Hugh Gundersen hsg@h-gee.co.uk Bognor Regis, W.Sussex, England, UK > Q. Shall I take all my cash out of Nat West and stuff it under the bed? Yes - where is this bed exactly? > Hugh Oh yes and when will you be out? >> Q. Shall I take all my cash out of Nat West and stuff it under the bed? > >Yes - where is this bed exactly? 11 Downing Street, W1 >> Hugh > >Oh yes and when will you be out? Between 10:00 and 17:00 Friday SignatureSir Hugh of Bognor The difference between men and boys is the price of their toys. Intelligence is not knowing the answer but knowing where and how to find it! Hugh Gundersen hsg@h-gee.co.uk Bognor Regis, W.Sussex, England, UK > >Yes - where is this bed exactly? > 11 Downing Street, W1 SW1, actually. South of the park. Signature*It is wrong to ever split an infinitive * Dave Plowman dave@davenoise.co.uk London SW To e-mail, change noise into sound. >> >Yes - where is this bed exactly? > >> 11 Downing Street, W1 > >SW1, actually. South of the park. Sorry Dave I missed the "S" I know where it is having lived in the metropolis since birth (1946) until I managed to escape to sunnier lands in the south in 1998. SignatureSir Hugh of Bognor The difference between men and boys is the price of their toys. Intelligence is not knowing the answer but knowing where and how to find it! Hugh Gundersen hsg@h-gee.co.uk Bognor Regis, W.Sussex, England, UK I managed to escape to sunnier lands in the south in > 1998. Greece or Spain? JJ > I managed to escape to sunnier lands in the south in >> 1998. > >Greece or Spain? > >JJ Read the sig! SignatureSir Hugh of Bognor The difference between men and boys is the price of their toys. Intelligence is not knowing the answer but knowing where and how to find it! Hugh Gundersen hsg@h-gee.co.uk Bognor Regis, W.Sussex, England, UK >>> Q. Shall I take all my cash out of Nat West and stuff it under the bed? >> [quoted text clipped - 7 lines] > > Between 10:00 and 17:00 Friday I knew the chancellor was "out to lunch" but this is ridiculous! He's lying... :-) His bed is in the vicinity of Bognor Regis! Actually, my wife has been suggesting the same thing! My demutualisation (I voted against, thinking it would end in tears!) Halifax (& other BS) shares are now worth buggerall, but at least I received ten-pence' worth of dividends over the years. DAS To send an e-mail directly replace "spam" with "schmetterling" --- >>> Q. Shall I take all my cash out of Nat West and stuff it under the bed? >> [quoted text clipped - 3 lines] >> >>> Hugh [...] > He's lying... :-) > > His bed is in the vicinity of Bognor Regis! > > Actually, my wife has been suggesting the same thing! Same question then where is bed and when will you be out? Please leave your money under the bed, your wife on it and the keys to your BMW on the bedside table ;-) > My demutualisation (I voted against, thinking it would end in tears!) > Halifax (& other BS) shares are now worth buggerall, but at least I > received ten-pence' worth of dividends over the years. > > DAS I note that the US Economist (and noted columnist for the NYT) that just today won the Nobel Prize for Economics, praises Alistair Darling and the PM, and trashes Bush and Paulson. Oh, yes, the US thought of it first, but Bush and company are too stupid to listen to anyone but themselves. They've bought into the joke that goes: "I talk to myself, because no-one intelligent is around." FloydR The government buying shares in banks smacks of SOCIALISM. Weren't there anti-buyout demos in Washington also because of that, and not just because of wealthy managers being supported? Funny how the US post-Depression lawmakers were prescient in controlling the commercial and merger activities of banks. Shame their laws were considered out-dated and repealed or amended. DAS To send an e-mail directly replace "spam" with "schmetterling" --- > I note that the US Economist (and noted columnist for the NYT) that just > today won the Nobel Prize for Economics, praises Alistair Darling and the [quoted text clipped - 7 lines] > > FloydR > The government buying shares in banks smacks of SOCIALISM. Weren't there > anti-buyout demos in Washington also because of that, and not just because [quoted text clipped - 23 lines] > > - Show quoted text - For the simple reason that not enough money would be made be pols on the take that way. |
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