Saturday, January 3, 2009

Oh Darling

Having pumped £37bn into saving the crippled banking sector, and underwriting £200bn or so of lending, the Government is preparing for yet another round of money pumping...

A further bailout for the UK's banks is being considered by the government, Treasury sources have confirmed.

Sources say no decisions have been made but creating a "bad bank" where "toxic assets" could be left, or exchanged for government bonds, is being considered.

So not only do I get to be a minor shareholder in several major banks as an oh so very generous taxpayer, but I also get to have all the bad debts dumped on me.

So bankers make reckless lending decisions and get landed with toxic debts. They go all dough-eyed and plead innocence. Electoral politics, and teetering on the edge of economic oblivion, spur Governments into letting bankers off the hook. Taxpayers get shafted. Bankers blood pressure returns to normal. A whole generation gets saddled with the debt.

And this is a good deal how?


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