Posted by: secretperson | October 9, 2008

Economic Crisis and Banking Bail Out

Now I don’t know a lot about economics. I don’t really understand why stock traders I have never met, selling each other imaginary money that seems to exist only on computer can affect my cash flow. It seems to be a problem that banks won’t lend to small businesses who often need a temporary cash flow, that I grasp. The Government is borrowing, on the taxpayer’s behalf to give money to banks to lend to these businesses, and presumably to us, at an interest rate. I don’t know who the Government is borrowing from?

All I hope is that my shopping carefully, not getting into debt and saving for a rainy day are not punished to reward the reckless, whether those reckless be borrowers or lenders.

Still, The Englishman directs me to The Scotsman. With a handy Q&A which seems vaguely reassuring, whatever my instinctive fears about any kind of nationalisation, however partial.

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Responses

  1. Hello Secretperson

    The Government is borrowing from us, their taxpayer, as it has always done, but this time it will increase the size of its national debt much more. Our money is now going towards bailing out the reckless financial players who ended us all in this mess in the first place. Our savings for a rainy day aren’t 100% safe anymore – would you trust a government to not take these away if we need, say, a currency reform to sort out the mess we are in?… I wouldn’t… who knows what will happen next.


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