Toxic assets set to move to taxpayers balance sheet
It has been revealed by sources close to the Treasury that UK taxpayers will be forced, by the government, to underwrite £200 billion of bad debt in the UK banking system. These so-called toxic assets consist of traditional bad debt as well as bad debts carried over from the initial credit crunch which have yet to be addressed. Initially the US government had hoped to install a plan to acquire all toxic assets across the board, hold them for some time, and then sell them on for a profit. This would appear to be the same scheme which the UK government has in mind.
Yet again taxpayers look to be in line for another serious "fleecing" with a so-called Bad Bank to be set up. The so-called Bad Bank would be used to acquire and be home to an array of toxic assets which have the potential to bring down the UK banking system. In many ways the UK government, UK taxpayers and the banking sector have no alternative but to bringing the authorities in and attempt to head off any potential problems in the future.
Quite how Gordon Brown will explain his latest plan to the UK taxpayer remains to be seen but it is now getting very serious!
Share this..
Related stories
What can Gordon Brown do to help the UK?
As the US authorities continue to throw money at the financial markets to support and encourage a recovery, many are now starting to ask what Gordon Brown can do? What can the authorities do to help the UK economy?
The answer to that is basically nothing because there is no money left in the UK coffers with tax income down, national debt growing and the Treasury budget showing the l...
The Bank Says No, The Markets Say Yes
The next few months will see the development of a very interesting tussle between the Bank of England and the currency markets where Sterling has been pushed to a 22 month low against the dollar. It seems as though the Bank of England's negative outlook for inflation has spooked the markets although many are now starting to price in an interest rate cut to try and revive the economy.
Read More
Was Barack Obama really too tired to see Gordon Brown last week?
As Gordon Brown looks back on his visit to the US and the rather low-key entrance afforded to him by the new US government the US authorities are now suggesting that Barack Obama was "too tired" to welcome Gordon Brown "properly". While this may go some way towards diffusing the suggestion that he had been sidelined by the US administration there is no getting away from the fact that his visit to...
Read MoreHow has the UK government got it so wrong?
Over the last few days we have covered a number of reports suggesting that UK national debt is set to spiral out of control. Many people are now asking how on earth the UK government has managed to lose their grip on the UK economy after a period where economic growth was very much taken for granted. This was also a period during which Gordon Brown managed to obtain a great reputation for economic...
Read MoreIs the housing market beginning to turn down?
The Nationwide Building Society has today revealed that UK house prices increased in value by 0.5% in November with signs that demand for UK houses is starting to fall. While the figure could be slightly misleading because the winter period is often a very quiet period for the housing market, many experts believe that 2010 will see further falls in the cost of UK property. So should we be alarmed?...
Read More