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    What would happen if Goverment didnt Bail out these Banks?

    i just heard darling say if B&B wasnt bailed out it would have a systamatic affect on the economy, but what does he mean what are the implications if these banks wernt bailed out?

    19 Comments

    Peoples life savings will dissapear, therefore no one will have any money to spend, so business's will lose money and go bust, shops will start closing down... everyone is poor... ooo and the bank itself won't be able to invest into new business's which will mean even more business's will go bust.

    Does he mean the bank bosses wont get paid and wont continue to donate money to the political parties?

    sounds like scary times ahead :thinking:

    Banned

    Likewise don't get why a bank should be bailed out for millions/billions but a small business with a few hundred thousand debt should be allowed to go under. They should just be left to fail.

    Banned

    Peoples savings would be OK up to a certain amount (£35k?). If B&B was allowed to fail thousands of customers would be hit, staff would loose their jobs and the financial markets would take a battering. The government are nationalising them to help the customers, staff and to try and prevent a financial melt down - good job if you ask me, the problems caused by them going bust dont bear thinking about

    a bottle of milk will cost you 30,000 x what it did yesterday.

    [SIZE="7"][COLOR="Red"]We'll all be killed[/COLOR][/SIZE]

    t0mm;3078902

    a bottle of milk will cost you 30,000 x what it did yesterday.



    Good job i invested in old bertha the dairy cow

    Titchimp;3078943

    Good job i invested in old bertha the dairy cow


    It probably wouldnt do that, I just like to cause a panic.

    Banned

    Titchimp;3078943

    Good job i invested in old bertha the dairy cow



    I will be watching as many Ray Mears DVD's as possible, and attempt to survive in the wild!

    hankmarvin4;3079024

    I will be watching as many Ray Mears DVD's as possible, and attempt to … I will be watching as many Ray Mears DVD's as possible, and attempt to survive in the wild!



    Ive been practicing my crouch into shot.

    oh gee, back to hunter gathering, whos good at making spears?

    There is a cycle. The government not bailing out will cause the banks to reduce lending. The people will then have less to spend and thus housing prices fall. It'll eventually lead to home owners defaulting and back to the bank losing more money.

    Banned

    loupomm;3079137

    oh gee, back to hunter gathering, whos good at making spears?



    Ray Mears is!

    hankmarvin4;3079247

    Ray Mears is!



    Shares in him must be going through the roof

    Original Poster

    so im guessing that the time of easy mortgages is over? the 100% + mortgages will be no more?

    Survival
    101 recipes to do with 1 egg
    tomorrow 101 recipes to do with the humble potato

    Banned

    wazb;3079481

    so im guessing that the time of easy mortgages is over? the 100% + … so im guessing that the time of easy mortgages is over? the 100% + mortgages will be no more?




    think they already are no more

    Banned

    Here's a good explanation why the bail out's won't help, by a BBC correspondent;
    news.bbc.co.uk/1/h…stm

    Strangely I'm on a 2 year variable, I paid 100% if house prices have gone down 11% in a year when I go to re-mortgage next year I won't be able to because it will be another 100% mortgage. So my mortgage rate will go up to plus 7% APR. Fortunately we have plenty of savings to carry us through and we have both had pay rises since taking out the mortgage, I imagine quite a few other people though won't be so lucky.
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