Hello UK, and welcome to the bail out club…

I’m not seeing enough about the 500 billion pound UK Bailout (that’s $865 Billion US) on US Financial news.

That’s more than our USA bail out despite the fact that our economy dwarfs that of the UK.  Probably a sign that here in the US we are in for massively more bail out spending before the financial bloodbath is over.

The scale of this measure suggests to me what the markets already seemed to know – the situation is worse than we’ve been told.

So, market activity remains jittery and unhappy even though we’ve now got a massive global bailout in progress with the global .5 rate cut combined with 700 billion here and 865 billion there and the large global rate cut.  Gee whiz, pretty soon this could add up to real money.

I’m uncertain about this but I think the only remaining certainty is uncertainty, and that’s … for sure!

7 thoughts on “Hello UK, and welcome to the bail out club…

  1. Just finished reading a lengthy research piece that suggests it may take more than 700 billion approved thus far to stop the bleeding. We are learning just how extremely intertwined the global economy has become.

  2. (1) Paul I believe the amount is just shy of $4 trillion. To be exact $3.8 trillion. That is just to get the housing market bottomed out. Until that happens our credit markets are not going to respond.

    We need to get the offshore money in tax havens back in this country ASAP.

  3. Hi Joe, I think it was only 50 billion here in the UK not 500. That’s still around a grand from every man woman and child in the country. Somehow I doubt we’ll ever see it back.

  4. (1) The real shame Paul is if we just insured the bad paper it would have only cost $50 billion and would have made more of a difference already.

    Suspend cap gains and corp inc tax and the market would be rocking right now…we have fools in congress.

  5. Financial crisis: Bail-out explained
    The £500 billion banking bail-out trumps the US rescue package in both size and scope and means every British taxpayer is potentially liable for up to £19,230 to pay for its cost.

    Sorry Adam, but unless UK Telegraph London is misreporting … you are now on the hook for a lot more than me.

  6. The EU agreed to take steps to improve their banking and credits systems today.

    They are going to guarantee through 2009 bank debts with a future maturation date of up to 5 years out. They cleared the way for governments to buy into banks and committed to recapitalize the system.

    So maybe we can start to see some stability. Asia opens in a few minutes so we will get the first glimpse of what may happen here.

  7. Asian markets are starting to respond – hopefully they can close up…Monday might not be such a bad day but I am not holding my breath.

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