Thursday, April 16, 2009
So the banks suddenly discovered that they were screwed. AW Shame. So The government gave them some billions. And then a few more billions. Then some more billions. Because they, er needed it.
I did think of a different way... Don't.
Let them go to the wall. Spend a fraction of all those billions on guaranteeing peoples savings up to 40K.
What would that do for the economy?
A bank goes under and the next day a couple of million people don't have to pay a mortgage any more. Suddenly they've got an extra £400 to £900 a month to play with.
People don't save. We know that. They spend it.
Then another bank goes under and boom! another million or so people walking around town with an extra £500 in their pocket.
Sounds great to me.
The government decided to go a different way. Give banks Billions and billions.
We'll not see any of that. All we'll see is huge taxes for years to come.