Tuesday, April 22, 2008

Bailing out the banks

The Bank of England is allowing our banks to swap mortgage debt for goverment bonds (at least that's what I understand of it). It feels like a classic case of nationalise risk and privatise profit.

I wonder if this bailing out will have a later payback, during the good times the goverment was often talking of windfall taxes. I think that could be a reality now with this move.

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