TSB approve HBOS buy-out

Rinty · TSB approve HBOS buy-out

Lloyds TSB shareholders have voted in favour of taking over HBOS as well as taking government bail-out money.

http://news.bbc.co.uk/1/hi/business/7736722.stm

If the Lloyds TSB can afford to buying up other businesses, should we really be bailing them out? Its a bit like giving someone housing benefit so they can afford to but a second home.

Reluctant Hero

I find the whole approach taken by the government over the credit crisis pretty worrying.

Firstly, the banks that were making £billions out of us barely last year have come cap in hand to the govt seeking extra money because they have run out.

Then the govt says, yeah no bother, here's £more_billions, go and give it to the same people in the same quantities as before.

Now it is anticipated that the govt is going to borrow more money on top of the record amounts that they already owe to try and get us spending again with tax cuts.

We are just storing up mega problems for a couple of years time, if the ones we are facing just now aren't bad enough.

Rinty

And when the govt 'borrow' money what they do is issue protected bonds with a guaranteed profit. The bankers and investors who fleeced the market are now in a position to release their personal capital in the caymans into UK PLC bonds, guaranteeing further profit.

Mandelson was on TV yesterday morning and all he talked about was tax cuts, not because we deserve or need them but totally about getting the poorest to spend more to boost the profits of businesses.

Next we will see a huge reduction in interest rates, meaning borrowing will be cheap and the whole things starts again.