Does anybody know where the bailout money went?

[suityou01]

Yup. There's a biggie coming, probably 2011/2012.

you have to expand on this Menelaus.

[Menelaus]

That's what worries me most. The economy is steaming towards a painful restructure.

Yup. There's a biggie coming, probably 2011/2012.

[TimberWolf]

Because the government spends more than it earns in taxes. This is only partially down to bailing out the banks, they also have to service their existing debt, fund two wars, and pay increasing amounts of social security and so on.

That's what worries me most. The economy is steaming towards a painful restructure.

[suityou01]

Because the government spends more than it earns in taxes. This is only partially down to bailing out the banks, they also have to service their existing debt, fund two wars, and pay increasing amounts of social security and so on.

sure

S&P will take all that into it's thinking, and then downgrade their credit rating.

[doodab]

OK so why does it need to borrow another 2Trn this year then just to stay afloat?

Because the government spends more than it earns in taxes. This is only partially down to bailing out the banks, they also have to service their existing debt, fund two wars, and pay increasing amounts of social security and so on.

[AtW]

The uk subprime hasn't exploded yet.

The likes of HBOS allegedly made a lot of subprime commercial loans - if you look at commercial property valuations they dropped like 50%. The same should have happened in the housing market but politically it was easier to order BoE print money and shaft remaining savers, pensioners in order to bail out overextended house "owners".

This surely would not have happened under Tories!

[suityou01]

A couple of links that show where the US bailout money has gone:

http://www.nytimes.com/interactive/2...s-graphic.html

http://bailout.propublica.org/main/list/index

The US govt has made billions of profit on it's loans to Morgan Stanley, Goldman Sachs, BoA, JP Morgan Chase etc, many of which are now repaid. Not bad business really.

OK so why does it need to borrow another 2Trn this year then just to stay afloat?

[doodab]

A couple of links that show where the US bailout money has gone:

http://www.nytimes.com/interactive/2...s-graphic.html

http://bailout.propublica.org/main/list/index

The US govt has made billions of profit on it's loans to Morgan Stanley, Goldman Sachs, BoA, JP Morgan Chase etc, many of which are now repaid. Not bad business really.

[HairyArsedBloke]

I have it. Some is in a jam jar on a shelf in the kitchen the rest I used to buy some magic beans.

[doodab]

The credit crunch meant trillions of dollars of bailout money needed to be printed to stabilise the economy.

OK.

But where did it go? Defaults on mortages, and huge bankers bonuses alone do not come even close to accounting to where this money has gone.

Can anyone answer this? Or has this money been funnelled into a global governent under a haze of creative accounting, credit default swaps and political rehetoric?

If the global elite have trousered all this cash, what are they going to do with it? When?

If not them, then where has all the money gone?

It has been lent to banks and also used to purchase quite a lot of assets, most of the UK retail banking sector and £200bn of bonds.

The bad debts held by banks spooked everybody and meant that they stopped lending money to each other. The point of the "bailout" was to lend them money (or in the case of Lloyds and RBS to recapitalise them, in return for a large share of the equity) so that they could in turn lend money, because the modern world runs on debt.

At some point, the banks will repay those loans and the semi nationalised ones will be sold, and our national debt won't look nearly as bad. Of course between now and then we have to unwind their dependency on state provided liquidity and service the debt, so it's not plain sailing, but IMO it's incongruous to look at 800bn of debt without also taking into account the 300bn or more of assets on the other side of the balance sheet.

[Bagpuss]

Which overdrafts, loans and credit cards? We bailed out the banks mess from US toxic debt exposure. The uk subprime hasn't exploded yet.

[suityou01]

Where do you think the money has gone? I'll give you a hint:

If you are overdrawn by £100 and I give you £100 to pay into your account what is the net result?

Even if you bring all the overdrafts, loans and credit cards into the equation it STILL doesn't come close to accounting for the bailout money.

[Bagpuss]

Where do you think the money has gone? I'll give you a hint:

If you are overdrawn by £100 and I give you £100 to pay into your account what is the net result?

[suityou01]

The credit crunch meant trillions of dollars of bailout money needed to be printed to stabilise the economy.

OK.

But where did it go? Defaults on mortages, and huge bankers bonuses alone do not come even close to accounting to where this money has gone.

Can anyone answer this? Or has this money been funnelled into a global governent under a haze of creative accounting, credit default swaps and political rehetoric?

If the global elite have trousered all this cash, what are they going to do with it? When?

If not them, then where has all the money gone?