How does it work?

[rov1200]

The government needs to borrow �37 billion to fund the bailout of the banks. Will people be taking their savings out of the banks to invest in the government scheme?

[saxy_jag]

I gather they're going to take from out taxes. In which cases, I'd like to cash in my shares now, please. I don't care about the rock bottom prices.

[str]

Does this mean we'll get profit sharing?

[jake-the-peg]

The Government will probably largely borrow this money from the same people who will not lend tto he Banks at the moment because they don't trust the Banks.

In effect they are standing guarantor.

Gordon's not going to be coming around with a big envelope saying "Please help needy bankers"

[rov1200]

It sounds a bit circular to me. Moving money from the distressed banks into government coffers who re-imburse the failed banks.