I don't know whether to laugh or cry...
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article
It's about the British bailout, but the same principle applies.QUOTEBANKS TO LEND YOU YOUR OWN MONEY
THE government is to invest £500bn of your money in British banks so they can lend it back to you with interest.
The historic move is being hailed as a lifeline for the financial system as long as nobody asks too many questions.
Julian Cook, chief economist at Corbett and Barker, said: "The government will give your money to the banks so the banks can start lending you that money, probably at around 7% APR.
"Thanks to all the interest you're paying on your own money, the banks will make billions of pounds again and normality will be restored.
"After a few years of this the government will cash in the bank shares it bought with your money and use the profits to build a huge fucking dome somewhere."
He added: "In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot."
Chancellor Alistair Darling said the decision had been taken in tandem with the banking industry, adding: "They used a lot of dirty words I'd never heard before and one of them had an angry looking dog."
Meanwhile, Emma Bradford, a sales manager from Bath, said: "Why doesn't the government just give my money to me so I can buy stuff from businesses who will then make a profit and put it in a bank?"
But Mr Darling insisted: "Shut up." -
So they aren't taking tax dollars and giving it to banks in order to encourage loans?
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/cry
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QUOTE (Jedd @ Oct 9 2008, 01:26 AM) <{POST_SNAPBACK}>So they aren't taking tax dollars and giving it to banks in order to encourage loans?
As far as I know the UK has took a slightly different approach to the US.
Mainly short term loans at normal rates to encourage inter bank lending and the government is offering to buy preference shares in banks. The financial package looks to be a lot more comprehensive. The total package is some £500 billion ($851 billion), that does include however "Northern Rock" a bank in so much trouble it had to be nationalised at a cost of £120 billion ($204 billion). I think largely UK banks aren't in that much trouble, it's just the climate of fear is making them a little shakey.
Main street is suffering though. Petrol, Utilities & food all going up fast.
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