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Day of reckoning in UK as banks face bailout...

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posted on Oct, 8 2008 @ 01:05 AM
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Day of reckoning in UK as banks face bailout...


www.drudgereport.com

The UK government is poised to announce details of a £50bn rescue package for the banking system, the BBC's business editor has learned.
It will include a proposal to use taxpayers' money to invest in banks - in effect part nationalising them.
(visit the link for the full news article)




posted on Oct, 8 2008 @ 01:05 AM
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As it would seem things could not get worse
From external source:
The International Monetary Fund warned the economic downturn in many countries was likely to worsen as the financial crisis continued
IMF warns of 'severe downturn'
UK bank shares took a big pounding. HBOS dropped 42%, Royal Bank of Scotland (RBS) fell 39%, Barclays shed 9% and Lloyds TSB was down 13%.

www.drudgereport.com
(visit the link for the full news article)



posted on Oct, 8 2008 @ 01:11 AM
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reply to post by all2human
 


[sarcasm]
$50 billion? HA, what is that supposed to do? We just added almost 3x that amount in pork alone to our $700 billion dollar bailout. That isn't including the other trillion dollars that the fed has magically created in the last week or two.

50 billion.... come on now. [/sarcasm]


In all honesty though, this is crazy. I just wonder when we will hit the bottom. I guess I will know it when I am standing in the bread line.



posted on Oct, 8 2008 @ 01:21 AM
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reply to post by Karlhungis
 


This is not the end ,just the beginning,the global market is tanking as expected. what a shame



[edit on 8-10-2008 by all2human]



posted on Oct, 8 2008 @ 01:27 AM
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Banks across the globe are melting like a snowcone in a hot Florida summer day.....and this is just the beginning.


There won't be a bread line either. Reports are starting to filter in about grain shipments sitting on the docks because no one can get a letter of credit to purchase them.


This is GOING to be VERY serious folks!



posted on Oct, 8 2008 @ 05:41 AM
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Originally posted by Karlhungis
$50 billion?

I know that was probably a typo and you were being sarcastic anyway, but £50bn ($100bn) translates to £2,000 for each earner in Britain - which, strangely enough, is almost exactly the same amount per person as in the States, isn't it?

I was waiting for the UK bailout. They seem to be trying to soften the blow by emphasizing how "they're essentially buying shares in the banks on behalf of the public". Rubbish. Besides, if it was true, I'll decide which companies I invest my hard-earned money in, not these inept caretakers.



posted on Oct, 8 2008 @ 05:50 AM
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Originally posted by bismarcksea
There won't be a bread line either. Reports are starting to filter in about grain shipments sitting on the docks because no one can get a letter of credit to purchase them.


This is GOING to be VERY serious folks!


Yesterday I was actually reading somewhere about how the shipping industry is struggling to get credit. I'll try and find the source.



posted on Oct, 8 2008 @ 05:50 AM
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reply to post by Cythraul
 


Bah, last I heard every tax payer in the US was on the hook for closer to $3600 USD. So, come on guys..... pick up the pace a little.

Yes, I am just joking. The situation is nothing to laugh at but it really is taking on ridiculous proportions.



posted on Oct, 8 2008 @ 06:21 AM
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reply to post by Karlhungis
 


$3,600 is approximately equivalent to £1,900 I believe.
The UK Government is investing £2,000 per taxpayer in these banks... although £50bn (approx. $100bn) is less than the US 'bailout', its as just as big a blow to each hard-working person in the country.

Although I probably shouldn't comment, I've been out of work for a while now, and it is getting a lot harder to find jobs to apply for. And the ones that are there have ridiculous amounts of people trying to get them.

[edit on 8-10-2008 by selfisolated]



posted on Oct, 8 2008 @ 07:16 AM
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Originally posted by Karlhungis
So, come on guys..... pick up the pace a little.



Originally posted by selfisolated
$3,600 is approximately equivalent to £1,900 I believe.

Yeah! So you'd better pick up the pace my friend
. Don't wanna let the Brits beat you at being shafted by their Government do ya!?



posted on Oct, 8 2008 @ 07:33 AM
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Just for those of you in the US who are being cocky about this, the actual British bailout is GBP 500 Billion. How much is that in dollars? How much is that per Brit?

Gordon Brown hails £500 billion bank rescue plan


The Prime Minister hailed the package, which will see the taxpayer take large stakes in major banks in return for an injection of billions of pounds to prop up their shattered balance sheets, as a comprehensive, ground-breaking solution to the economic crisis.

"This is not a time for conventional thinking or outdated dogma but for the fresh and innovative intervention that gets to the heart of the problem," he said at a Downing Street news conference.

The package includes:

* £50bn to recapitalise banks

* £250bn to underwrite debt

* £200bn injection into the money markets

Admitting that Government borrowing will have to be drastically increased to fund the package, Mr Brown insisted that "for every family in the country, the stability of the banking system matters."


I could have started a whole different thread on this but I preferred to "rub it in" a little here.

My apologies to my more realistic American counterparts (the greater American population) of which some posters here are definitely not.

Nevertheless, we're all still being shafted. Many people still stand to lose their jobs, homes and savings. Who do you really think this is really going to benefit?

I let you decide for yourself because if you're too ignorant to work it out then you're too ignorant to have it spelled out.

[edit on 8/10/08 by Rapacity]

[edit on 8/10/08 by Rapacity]



posted on Oct, 8 2008 @ 07:54 AM
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Originally posted by Rapacity
Just for those of you in the US who are being cocky about this, the actual British bailout is GBP 500 Billion. How much is that in dollars? How much is that per Brit?

Gordon Brown hails £500 billion bank rescue plan


The Prime Minister hailed the package, which will see the taxpayer take large stakes in major banks in return for an injection of billions of pounds to prop up their shattered balance sheets, as a comprehensive, ground-breaking solution to the economic crisis.

"This is not a time for conventional thinking or outdated dogma but for the fresh and innovative intervention that gets to the heart of the problem," he said at a Downing Street news conference.

The package includes:

* £50bn to recapitalise banks

* £250bn to underwrite debt

* £200bn injection into the money markets

Admitting that Government borrowing will have to be drastically increased to fund the package, Mr Brown insisted that "for every family in the country, the stability of the banking system matters."


I could have started a whole different thread on this but I preferred to "rub it in" a little here.

My apologies to my more realistic American counterparts (the greater American population) of which some posters here are definitely not.

Nevertheless, we're all still being shafted. Many people still stand to lose their jobs, homes and savings. Who do you really think this is really going to benefit?

I let you decide for yourself because if you're too ignorant to work it out then you're too ignorant to have it spelled out.

[edit on 8/10/08 by Rapacity]

[edit on 8/10/08 by Rapacity]


So we're looking at US$1 trillion?
Bloody hell. Maybe thats why my welfare from last week still hasn't shown up



posted on Oct, 8 2008 @ 08:02 AM
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reply to post by Cythraul
 


Damn, you got me! I thought you converted to dollars there.... What in the world have we been doing here? 700 billion... we need to pick up the pace! We will not be out swindled by the British!

In our defense though, the fed has pumped about 1 trillion dollars into the system in the last week, not including the bailout money.... so with the devaluation of the dollar, maybe we are close?



posted on Oct, 8 2008 @ 08:03 AM
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OK, I am officially scared now. I was always of the mind set that things would get rough but would even out in the end......I have now started making preperations, i've talked to my family and warned them as to the "worse case senario".

Suprisingly they were very receiving of the info, we have made plans should everything go to hell. I't a good thing my parents have a big house with lots of land. our ability to grow our own food will be good.

the only problem im wondering is this....if things go to hell, will i need frearms you think?

Do you think things will be bad enough that people will be killing each other food, water, and gasoline?



posted on Oct, 8 2008 @ 08:12 AM
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What does all of this mean, to someone who has no understanding of the market or stocks or whatever...

It seems like gibberrish to me.

Are we REALLY in trouble, or is this just a load of people in suits talking crap and worrying about nothing?

EDUCATE me, i have no idea.



posted on Oct, 8 2008 @ 08:22 AM
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Although a burden on the tax payer, i think its important to stress that this is a positive measure and for once does show the government to be taking action on current economic climate. I just can't see an end to the media negativity which is surely denting consumer confidence and becoming a rather massive thorn in our economies.



posted on Oct, 8 2008 @ 08:45 AM
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Originally posted by Karlhungis
We will not be out swindled by the British!

Yes, who ever gets screwed the most 'wins'
. We have to laugh don't we, or we'll all break down in tears.


Originally posted by theblunttruth
Although a burden on the tax payer, i think its important to stress that this is a positive measure and for once does show the government to be taking action on current economic climate. I just can't see an end to the media negativity which is surely denting consumer confidence and becoming a rather massive thorn in our economies.

You really think?

I'd say that if you want the blunt truth, you should look into the relationship between the media and the people who are going to be benefitting from this. This bailout is not going to fix a broken system - one which funnels everything to the top. It's just going to require a monetary injection from the central bank to pay back this debt, causing a sharp inflation jump - and we'll get hit again as our money devalues over the coming years.

Bottom line is, every taxpayer in the USA and the UK (and elsewhere in Europe) is currently having a large chunk of their hard-earned money given away. I don't buy into all the crap about these bailouts being necessary. They're necessary to make the rich richer, that's all.

[edit on 8/10/2008 by Cythraul]



posted on Oct, 8 2008 @ 09:16 AM
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Maybe it`s time this DID happen. How many more years must we be under the thumbs of the banking systems? Even if they were to get it going again, down the road it would be the same thing all over again. Nothing but debt debt debt with the interest rates they throw at everyone. And these bailouts, what a joke.

Ummm, let`s see, people can barely afford to make the payments on the debts they now have, so what do they do to help? Oh, sure, put more debt on them by upping their taxes to pay for this bailout. People think they had it bad before, wait till you get the bill for this one. That`s what I could never understand about those who say that we need to do this. Who is it going to help? The everyday working people? How is having your taxes jacked through the roof going to help? After it`s said and done, and you get the first tax bill for this, come back here and tell me just how much it helped you. Good luck is all I can say.


They say it will help the economy? Ok, so if they get it going again, are people going to be able to afford to buy anything? Just remember to put money aside (if you have enough), for the next tax season. They could care less if you can afford to buy anything, just remember to pay those taxes. I am beginning to think that they will not be happy till they get every dollar people work for. Slaves to the system, nice, huh?



[edit on 8-10-2008 by FiatLux]



posted on Oct, 8 2008 @ 09:30 AM
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reply to post by mr-lizard
 


The British government are reintroducing the exact same measures used during the Great Depression. Believe it or not, Britain weathered that economic crisis very well - compared to the United States and Canada.

Banks now have no reason not to lend money to each other and the general public. Socialising the market means a HUGE safety net now exists, it will take months to take effect but it will not be the silver bullet (that does not exist.)

The real economy, mainly manufacturing, will be difficult to fix.




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