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Who wants £16?
Former Member
Posts: 1,876,323 The Mix Honorary Guru
Time to claim your divided UK people
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By the same logic we should be able to withold our taxes, after all its our money...
Whose portrait and inscription is on that money of yours ?
Don't forget to render unto Caesar that which is Caesar's.
*facepalm*
It was all a hoax and the urban fox didn't steal your n after all.
The taxes are used to provide services that we all use. At the time they were used to shore up the banks to prevent them collapsing and taking the rest of the UK with them.
Now the bank is back in the black I think it's about time they return the money they were lent. Don't forget that if you owed the bank money they'd have the bailiffs round, regardless of your ability to pay, why should we treat them differently.....?
I would say the economic benefits we'll get from it are much greater than the benefits we get from certain other areas of spend
Well you fear wrong as I've already pointed out Government is ashareholder and is already making a paper profit. Now assuming that George Osborne doesn't personally pocket the £2bn or so profit by selling tomorrow we benefit by the Govt having the future ability to lower taxes and/or put money into public services that the state needs to provide.
What we don't need is for the profit to be made on the basis of huge risk, like last time.
The government lent them my money. Money I had willingly parted with in my taxes because it will do some good. I didn't begrudge my tax going to the bank because it saved worse problems later on.
The ban is now at a point where it is making a substantial profit. Now is the time to pay it back. I'm not expecting a rebate, I am expecting the bank to repay what it borrowed, in the same way a bank would expect us to repay what we borrowed.
Don't we? Isn't the major criticism of the banks there current unwillingness to lend to business? And the reason why they aren't lending is that it is too risky...
The Government didn't lend them anything. It took equity in return for cash and set up an insurance scheme, which the banks are paying for.
And it can't pay anything back because it didn't borrow...
The Government will get money back from selling shares (and from dividend if we wait long enough). However, if it sells more than a fraction it'll drive the price down and it will also get more by waiting a couple of years for the share price to go up.
No we don't.
It's one things to take some risks, which is what lending usually involves. But that doesn't mean that they have to be stupid like they were before. Sub Prime mortgages, lending 70 times the assets of the bank.... that sort of risk we don't need.
Which is exactly what's going to happen. Believe me, the banks want to end government involvement as much as you do. Furthermore, the government wants, I hope, to make a tidy profit on the banks, via their shareholding. So they have to balance the desire to let them stand on their own two feet, and making a nice profit.
Furthermore, given market confidence isn't exactly booming at the moment, they must also consider what the consequences of selling 75% of the equity in a vast company at a single sitting. This could cause the share price to plummet again and we'd all be back where we started.
So it's a careful balancing act, between support and making a whacking great profit.
Lending to small businesses would be very risky right now.