Tuesday, 22 April 2008

And now let's buy the banks

So we have another cockspiracy unwinding. The banks made an enourmous cock-up in lending money to those who were desperate to buy stupidly expensive houses. Make not mistake, this was about greedy misselling. The banks are now effectively broke - note the two rights issues in the last week totalling over £20 billions.

OK - 20 billions - sounds innocuous. Start counting now and in 600 years you might reach 20 billion... That is a big number. Add in the other £100 billion that the UK has stumped up to support the banks that is a stupendous number. I guess it is going to be over £2,000 for every man, woman and child in the UK. Add an average £7,000 to every family's debt in the UK and we might end up all being bankrupt.

Conspiracy to destroy our finances? No, just as sequence of cock-ups. You can just hear the treasury grunts saying - "We have to support the banks", no thought of the fact that it was their fault. The true depth of this cockspiracy will take at least 2 years to unwind.

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