After the developments in America that the financial institutions should be bailed out to the tune of seven hundred billion dollars by the American tax payer
It now seems our our own little Darling is thinking of using the same American bail-out model as an excuse for British taxpayers doing the same over here. Who Say's that white collar financial crime does not pay eh?
In my opinion, an opinion why this bail-out is bad news economically for the future of this country is explained here. If the bailout had not gone ahead it is highly unlikely that Alistair Darling would be strutting around like a peacock now thinking that he could do whatever he wants with British tax payers money. In the long term housing property values will not come down to a realisable level to which first time buyers can afford. If property values are kept artificially high, what makes the banks and mortgage companies the most money, a mortgage at fifty thousand pounds, or a mortgage at one hundred thousand pounds?. Boom and bust is going to be the order of the day I'm afraid and oh how Gordon Brown must be cursing the bad timing of this one for him.
If the American bail-out had not gone ahead there probably would have been a collapse the likes of which we have never seen before. There still may be a collapse as this American bail-out may not even work, time will only tell. Inflation and the cost of living would have gone up in the short term, but financially in the longer term things would have been a lot better. Short term unemployment will have gone up but again would have settled when the economy corrected and balanced itself out. One thing for sure in my opinion is this, what will they do when the next cycle of boom and bust comes. The capitalist model requires bigger profits but will it come at a bigger cost and who will pay the cost when it inevitably fails next time?
To read Alastair Darlings bail-out ideas, click on orange headline.