Monday, January 19, 2009

Continuation of getting exponentially worse...

Alistair Darling's admission today that he actually had no idea how much the present (only up to Round 2) Bank Bailout was going to cost is a staggering admission.
Of course, the reason he has no idea is because the Banks themselves have no real idea either - which is why there is a real problem in the first place.
The Banks have managed to persuade their own Bank Manager, A.Darling Esq, and that nice Mervyn King, that they should be given a blank cheque whilst they work their way through their problems. Forget all the rubbish about "stringent conditions" - that's just so much political hogwash.
I would urge you to go along to your own Bank manager, if you can find one to talk to, and ask for the same indulgence. I doubt he would be in the least amused, but at the very least he would ask what the bottom line is.
If they really don't know themselves, we really are into another dimension.....
At a rough guess the fall today in the value of the shares the government already owns in Banks is of the order of a further £12 billion - but that is only a very rough guess.It could be nearer £20 billion. But then, if you don't know whether the Banks losses are £700 billion, £800 billion, or a £1 trillion, what's a mere £8 billion?
12p? RBS is at 12p? It's quite literally unimaginable.


Brian Boru said...

As if the Pound has not fallen enough - we now seem to be heading for a full blown Sterling crisis. Oh, to be in the Eurozone, but nae chance with the Xenophobic mentality of both main UK political parties.

kinglear said...

Hi BB - if we were in Eurozone we would already be Kaput as what remains of our wealth-creating industries would have been slaughtered..