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Alistair Darling floats the idea of a bad bank

Slowly but surely the UK government would appear to be leaking various details of the proposed "bad bank" which would use taxpayer money to acquire potentially toxic assets from a variety of UK banking operations. Initially the idea had been suggested some months ago due to other options and a general discomfort amongst UK taxpayers it appeared that the "bad bank" idea had been dropped. So who would benefit from a "bad bank"?

Yet again we would see taxpayer's money used to invest in assets which in the real world would be potentially worthless and high risk to say the least. This would then allow the UK authorities to pump further money into the UK banking sector via the backdoor at the expense of UK taxpayers, putting potentially billions upon billions of pounds at risk. The current bill for the various rescue packages and stimulus programs in the UK runs into hundreds of billions of pounds, but there are concerns that UK government debt could reach £3 trillion over the next two years.

Many are now suggesting a change of tack as the ongoing injection of billions upon billions of pounds into the system does not appear to be having any noticeable impact and taxpayers are facing ever-increasing tax increases in the future. Many believe that the "bad bank" idea could be a pivotal point with regard to the future of this Labour government which is coming under increasing pressure from all sides.

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