Bail out money
Nov 21st, 2008 by ctoop
The government keeps bailing out the banks, lending them millions at a time; also taking over bad mortgage debt. But where is this money coming from? You would have thought that if the government had all of this money they could have used it before to invest in education or the NHS.
But now that they are using it for these means, how will they get the money back? It will take years for financial markets to stabilise again, yet alone start making money to pay off this debt. So until this happens does it mean that less money will be designated to the public services?
The taxpayer is left out in the cold, with no information about how much money could be available to the banks in the future and also when this money will be returned to government.
It is a worrying thought that the government could be borrowing this money form somewhere, in which case, in the current economic climate, it is not a good time to be borrowing money.
The government needs to bail the banks out to try to avoid a disaster however, should they not be concentring on showing a certain responsibility with money instead of publicly producing more and more from a seemingly never ending pit.
By Charlotte Toop
