Reply to: Oh Dear: 750,000 more to bought into 40% tax threshold...

[Jog On]

An investment bought with debt. So...in theory...the govt. will sell its shares and pay off its debt that way.

A bit like buying a BTL with a 100% mortgage and putting the deposit on a credit card..

[lilelvis2000]

An investment bought with debt. So...in theory...the govt. will sell its shares and pay off its debt that way.

Yes I read something in the FT about how the govt. has to decide whether to split the banks (RBS, LLoyds-HBOS, Northern Rock) into separate parts...or let them fatten up before selling them on.

FT.com / UK / Politics & policy - RBS raises hopes of privatisation

Choices, choices...

[Jog On]

Tha bank bailout was an investment wasn't it? I thought the only reason the banks haven't repayed it yet is because the government wants to hold on to their investment for a while until it grows significantly more.

Maybe that's why they are allowing the banks to do whatever they have to in order to get the most out of their investment.. Nice trade Darling

I saw something about some RBS shares being sold back next year though:

UK may start selling £46 billion RBS stake - report

UK Financial Investments (UKFI), the body managing Britain's 67 billion pound bank stakes, is not expected to sell them until they are in profit, and not before an independent commission has released a September report on whether banks should be broken up or weakened to improve competition.

Try explaining that to a bunch of rioting students or daily mail readers...

[lilelvis2000]

Okay, yes running deficits during good years is a bad idea. Any economist knows that - and I think el Gordo had to modify his Golden Rule didn't he? But much of the deficit and debt has been caused by bailing out - to eye watering levels - the banks. Who've said "thank you, now f**k off". They didn't really need to fully bail out the banks...the investment bits could have been left out. But, of course there is a revolving door between no10 and The City. Cabinet geezers realise the potential for board seats on banks and large donations could disappear if that happened. I've no doubt the banks are doing what they did before, again.

[Lockhouse]

Bulltulip. This country is in a black hole because of socialist profligacy. Increasing the structural deficit during boom years is a really tulip idea.

Agree

[hyperD]

Sure there was overspend and inefficiency under New Labour but better that than the Tories using the money to allow big businesses to avoid tax and shaft their workforces in return for bribes to fund the party.

Mr Alf W, with the greatest respect sir, but eh? Are you serious?

So what you are saying is this: sure it's OK for a quasi-socialist government to almost bankrupt a country for a second time, but it's better than... blah blah blah ...nasty Tories?

Please tell me you are not of the mindset that supports the red team versus the blue team are you? I thought once we had outgrown our naïve, blinkered student politics and actually earned a living and experienced the reality and processes in life, that we could all see what a charade the whole political establishment, the media and big business were, regardless of the colour team you were supporting?

Reds, blues, yellows, green idiots - they're all the same: more government, more control, more propaganda, more taxes.

If you've not worked that out by now and you are still one of those distracted by the colour of the rosette, then god help you, because quite frankly, life is too short and swift to be getting angry over insignificant partisanship.

[OwlHoot]

It's quiet amazing really that people who supposedly represent the poor who HAVE to balance their home finances totally don't get it, yet supposedly rich Tories who can afford to spend more than they earn don't do it to the state finances.

I think I agree with the first half of that, but I'm not sure what the second half means.

What don't rich Tories do to the state finances?

[d000hg]

The financial black hole was caused by bankers f**king up the global economy.

No doubt while smoking big fat cigars, wearing top-hats and long curly moustaches.

[AtW]

Have another go at writing that one. It makes b ugger all sense as it stands.

It is possible my words are not very good, however look at numbers - UKs deficist run by Liebor Govt - I am sure they spoke perfect English though...

[Moscow Mule]

The financial black hole was caused by bankers f**king up the global economy.

Bulltulip. This country is in a black hole because of socialist profligacy. Increasing the structural deficit during boom years is a really tulip idea.

[GreenLabel]

The financial black hole was caused by bankers f**king up the global economy. It was no more caused by New Labour than by the US, Irish, Greek, Portuguese, Spanish, etc etc etc governments.

Arguments about the cause aside for a moment, New Labour did, however, ensure that we were in the worst possible position when the crisis began by creating a massive structural deficit in the good times. Had they the sense to have harnessed the good years and used them to build up a surplus, rather than a tulipload of debt, we wouldn't be in the position we are now.

[Green Mango]

The financial black hole was caused by bankers f**king up the global economy. It was no more caused by New Labour than by the US, Irish, Greek, Portuguese, Spanish, etc etc etc governments.

Sure there was overspend and inefficiency under New Labour but better that than the Tories using the money to allow big businesses to avoid tax and shaft their workforces in return for bribes to fund the party.

Unfortunately we are lumbered with 1 trillion of debt from the deficeit that Labour ran on the normal business of government over the last 7 years. This 1 trillion debt will increase by 149 million this year alone. This debt has nothing to do with the banks.

The bank debt is an extra 1.3 trillion pounds most of which will hopefully being repaid.

Conclusion : f""king Labour wrecked the economy again....

[Alf W]

It was Nu Liebor who BORROWED a lot of money to finance crazy stuff like PFI and still TAXED a lot making people without disposable income to obtain "cheap" credit - bankers certainly faciliated it but just like under Nazi regime the industrialists made profits and helped the Govt, but ultimately the people who are responsible are those who were in power at the time.

Have another go at writing that one. It makes b ugger all sense as it stands.

[AtW]

The financial black hole was caused by bankers f**king up the global economy. It was no more caused by New Labour than by the US, Irish, Greek, Portuguese, Spanish, etc etc etc governments.

It was Nu Liebor who BORROWED a lot of money to finance crazy stuff like PFI and still TAXED a lot making people without disposable income to obtain "cheap" credit - bankers certainly faciliated it but just like under Nazi regime the industrialists made profits and helped the Govt, but ultimately the people who are responsible are those who were in power at the time.

[Alf W]

The financial black hole was caused by bankers f**king up the global economy. It was no more caused by New Labour than by the US, Irish, Greek, Portuguese, Spanish, etc etc etc governments.

Sure there was overspend and inefficiency under New Labour but better that than the Tories using the money to allow big businesses to avoid tax and shaft their workforces in return for bribes to fund the party.