Will Osborne do a Brown and hand £billions to the banks?

[Gromit]

The UK banks have been living of borrowed money from abroad to the tune of 5 times GDP. Around one Trillion £ has to be repaid during the next three years. A think tank says they do not have the money and will need bailing out by the tax payer to the tune of £25billion a month during 2011.

Mr Osborne appears to be in denial. He said "I am certainly not expecting and have no indication at all that any British bank needs any further government support ..."

http://news.sky.com/s...ng_System_Set_To_Fail

Does the electorate have the appetite for more banking bailouts during these times of cuts and redunancies?

Do the banks have us over a barrel again, and we have no choice to fund their lavish bonus system?

Or will George happily hand our money over to his banking chums like Brown did?

[Sqad]

Gromit....Brown, Osborne.......it doesn´t matter......banks in UK are just about the only thing that we have to maintain our economy.

Have they got us over a barrel?.....Yes...and always have had
Will Osborne bail them out if necessary? ...Yes of course he will....no choice.

[youngmafbog]

Well I would suggest it needs looking at now. If it is the case then each case needs evaluating. Just because one think tank says something does not mean it is true either, there is undoubtedly an element of truth somewhere there though I suspect.
No, personally I dont think they should be bailed out. Customers assets to 50k are coverd and that should be that.
On the bonus issue, remember the Government gets more than half of that back in various taxes so its not all doom and gloom. Plus many bonuses are paid to low paid staff, do you want to deprive them?

[jake-the-peg]

You do talk some utter tripe sqad

The UK is still the worlds 6th largest manufacturing nation
http://investing.curi...ng-countries-in-2008/

Frankly the bonus issue is just political - it doesn't really affect the liquidity of the banks which is the most important issue.

The question is who is the new economics foundation who are making this prediction and are they credible?

Time to roll out sourcewatch

http://www.sourcewatc..._economics_foundation

Hmm well they have certainly won a number of plaudits but they do seem to come from an anti-big business background having been formed by people who led the Alternative G7. The Executive Director was International Director for Oxfam and the Policy director is an anti-nuclear power stations campaigner.

So all in all I'd like to hear what some other voices have to say about the imminant collapse of the banking sector before I go and start panicking

[R1Geezer]

But surely Gromit would have researched this properly, no way he would have not know this was by a vested interest mob! Heaven forfend!

[Sqad]

Jake

<<You do talk some utter tripe sqad <<

Cheers Jake

[Sqad]

Jake

The United Kingdom' financial exports contribute significantly towards the balance of payments. The UK has had an expanding export business in financial services, at least partly due to a regulatory structure the Government now accepts as inadequate.

Do you like that wording better?

[rov1200]

The banks collapsed first time because of the defaults on their mortgages. So this time the banks are more careful to who they lend.

It seems a bit ironic on the link you give that Capital One are making loans of up to £1500 at an astronomic rate of 34.9% APR for those with a bad credit record.