Did we have to loan the money for the billion pound banker bailout ?

[max]

What do you think would have happened to the economy if the banks had not been bailed out?

 

I know what would have happened to ordinary people if the banks hadn't been bailed out; those with mortgages would have received a letter informing them they had 28 days in which to pay them off.

 

This would have been necessary as savers' money is guaranteed and they would have been queuing to withdraw their funds. The only place the banks could have got the money was from foreclosing on their mortgages.

[JFKvsNixon]

In the "The End of the Party: The Rise and Fall of New Labour" by Andrew Rawnsley, he has sources within the treasury that speculates that we were only a few days away from the cashpoint machines being switched off, they also suggest that debit and credit cards would have also stopped working.

 

It would have been carnage.

[andyofborg]

In the "The End of the Party: The Rise and Fall of New Labour" by Andrew Rawnsley, he has sources within the treasury that speculates that we were only a few days away from the cashpoint machines being switched off, they also suggest that debit and credit cards would have also stopped working.

 

It would have been carnage.

 

a slightly less dystopic alternative would be that the government would have stepped in and guaranteed normal bank deposits which would have allowed the failing banks assets to be liquidated. the mountain of unsustainable debt would have been written off and a new more stable banking system could have been created.

 

the following two or three years would have been harsh but at the end there would have been more a more stable world economy.

 

nothing has really changed since the crash, asset bubbles are still bubbling, risky derivatives are still being derived so we may get to see if this idea is any better

[JFKvsNixon]

a slightly less dystopic alternative would be that the government would have stepped in and guaranteed normal bank deposits which would have allowed the failing banks assets to be liquidated. the mountain of unsustainable debt would have been written off and a new more stable banking system could have been created.

 

the following two or three years would have been harsh but at the end there would have been more a more stable world economy.

 

nothing has really changed since the crash, asset bubbles are still bubbling, risky derivatives are still being derived so we may get to see if this idea is any better

 

Apparently the banks finally admitted on the Friday that they had ran out of money and they would not be able to open on the Monday so the government only had the weekend to formulate and negotiate some sort of rescue plan.