We Now Own Another Bank! (UK)

[Kasz216]

Soleron said:

Kasz216 said:

bobbo19 said:
everything Kaz says realtes the Uk falling into the same trap as iceland.

jheeeez!!! LOL

Because it largely is?

It's unlikely that a major country goes bankrupt... but if one does you can bet dollars to donuts it'll be the UK.

For some reasons why...

http://www.thisismoney.co.uk/news/article.html?in_article_id=467930&in_page_id=2

"Consider the following terrifying facts. Our national debt officially stands at approximately £400bn - in itself a frighteningly high figure and our annual borrowing is now larger as a percentage of gross national product than in 1976, when Labour Chancellor Denis Healey was forced to call in the International Monetary Fund to rescue the economy."

"Let's take the case of just one - the RBS group, whose two principal assets are Royal Bank of Scotland and NatWest. RBS has outstanding loans and other assets amounting to an eye-watering two trillion pounds. That's five times the size of the national debt."

Why not the US? Their GNP is only about 5 times bigger but their national debt is about 20 times bigger.

Also, if we OWN all of these banks, and the banks aren't really in trouble (the only reason they're considered to be is the low confidence in the economy; if the economy was neither boom nor bust then the market value of its assets would far exceed its liabilities), when we sell the banks back to themselves we will get much more than we paid for them; enough to cover those billions in bailouts.

Unless we have some sort of deal where they never have to pay us back when we lose ownership of them. Which would be stupid.

 

 

Rank	Country - Entity	External Debt (million US$)	Date of information	External Debt Per Capita (US$)	Date of population*	External debt (% of GDP)
	World	$51,780,000	2004	$8,141	2004 est.	78.92%
	United States[1]	$13,703,567	6/30/2008	$42,343	31-March-08	99.95%
	United Kingdom	$10,450,000	6/30/2007	$189,855	Q4 2007	376.82%