If banks are too important to go bust.....

[ace00]

Where does all the money to buy up the failing banks come from? does the BoE just ratchet up the printing presses over the weekend?

If so, is that not inflationary?

Yes & Yes.

[Cyberman]

The banks are being nationalised. They belong to us! We are paying!

It's obviously government policy to build a portfolio of property via repossessions. Labour policy implementation at the stroke of a pen, and the public are being suckered.

[HairyArsedBloke]

If banks are too important to go bust.....

They are not.

However, some of them are so large that for them to go bust it would cause too much damage.

[rootsnall]

They are not.

However, some of them are so large that for them to go bust it would cause too much damage.

If the UK govt end up having to bail out HBOS then I think it's time for a run on sterling and 15% interest rates again

Maybe they'd be better letting them all go bust after all.

[Cyberman]

If the UK govt end up having to bail out HBOS then I think it's time for a run on sterling and 15% interest rates again

Maybe they'd be better letting them all go bust after all.

They won't let them go bust. They will be nationalised as per the Masterplan. I just heard this morning that losses on B&B are underwritten by the other private banks and they are getting a multi-billion payment from Bank of Santander for the assets that they want. Thus HMG are making a profit on this nationalisation, just as they are attempting to do with Northern Rock.

Me, a cynic ??!!

[HairyArsedBloke]

If the UK govt end up having to bail out HBOS then I think it's time for a run on sterling and 15% interest rates again

Maybe they'd be better letting them all go bust after all.

people

'time for a run on sterling' - underway now: down 2% this morning.

'Maybe they'd be better letting them all go bust after all' - YES