Cobol74
Forum Addict
- Joined
- Mar 21, 2006
- Messages
- 17,506
- Location
- The banana republic of Ukania
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- Honda Accord 2.2 i-Dtec Sport Estate.Hyundai Ix20
I have a question - how much of this stuff are the tax payer actually throwing away and how much are we getting back some time in the future? Anyone done the Maths?
Consider:
1. UK Government at least have become majority shareholders in several profitable (apart from toxic loan debt, some of which is supposed to be insured)
2. The people who avoid going on to the jobs market and therefore being a cost to the exchequer and the additional tax so raised
3. The profitable businesses not going into bankruptcy because of no loans and squeeze on cash flow.
4. Some of the toxic loans will turn out to be OK
5. Impact (in the short term at least) of lower wages as the workforce increases reducing pressure for employers to pay increases.
So UK and US governments as far as I am aware are getting assets for their money - its just that the assets can not at the moment be valued as the total amount of bad debt can not be calculated. Additionally as the properties are taken into possession they are assets too - now that asset class is falling in value but still some money should be recoverable.
My guess is that the Governments will loose 30% of the money put in as opposed to doing nothing - anyone disagree?
Oh that is still shed loads of money and it will take 20 years for the economy to recover I think.
Consider:
1. UK Government at least have become majority shareholders in several profitable (apart from toxic loan debt, some of which is supposed to be insured)
2. The people who avoid going on to the jobs market and therefore being a cost to the exchequer and the additional tax so raised
3. The profitable businesses not going into bankruptcy because of no loans and squeeze on cash flow.
4. Some of the toxic loans will turn out to be OK
5. Impact (in the short term at least) of lower wages as the workforce increases reducing pressure for employers to pay increases.
So UK and US governments as far as I am aware are getting assets for their money - its just that the assets can not at the moment be valued as the total amount of bad debt can not be calculated. Additionally as the properties are taken into possession they are assets too - now that asset class is falling in value but still some money should be recoverable.
My guess is that the Governments will loose 30% of the money put in as opposed to doing nothing - anyone disagree?
Oh that is still shed loads of money and it will take 20 years for the economy to recover I think.
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