News0 min ago
Financial crisis.
3 Answers
As we brace orselves for the new age of austerity, I got to thinking.
The financial crisis was caused by the banks making bad investments, these investments were so poor that the banks nearly failed and took all our money with them, right?
So, the governments bailed the banks out to prevent this, right?
So, now the banks are saying we have to make cutbacks and raise taxes to reduce the deficit, right?
But, they owe us the money, so how and when are they going to pay it back?
Listen to this, it gets better, as I understand it to help pay for the banking bail out the goverments are issuing bonds, the banks are buying these bonds, and it's the added value that these bonds provide that is giving them these profits.
I'll try to explain this (it's complicated), we (the government) give the bank two million pounds as a bail out, to fund it we sell two bonds at one million pounds that in ten years time (say) will pay out one and a half million pounds, the bank then buys both the bonds with the two million pounds that we've just given them, slot the extra million that we're gonna give em, and then say "boy aren't we bankers clever, gimme a big bonus or I'll b u g g e r off elsewhere."
At least Dick Turpin wore a mask.
The financial crisis was caused by the banks making bad investments, these investments were so poor that the banks nearly failed and took all our money with them, right?
So, the governments bailed the banks out to prevent this, right?
So, now the banks are saying we have to make cutbacks and raise taxes to reduce the deficit, right?
But, they owe us the money, so how and when are they going to pay it back?
Listen to this, it gets better, as I understand it to help pay for the banking bail out the goverments are issuing bonds, the banks are buying these bonds, and it's the added value that these bonds provide that is giving them these profits.
I'll try to explain this (it's complicated), we (the government) give the bank two million pounds as a bail out, to fund it we sell two bonds at one million pounds that in ten years time (say) will pay out one and a half million pounds, the bank then buys both the bonds with the two million pounds that we've just given them, slot the extra million that we're gonna give em, and then say "boy aren't we bankers clever, gimme a big bonus or I'll b u g g e r off elsewhere."
At least Dick Turpin wore a mask.
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