The BBC website has a 7 slide show relating to the costs of the bailout worldwide. If you are either:
a) interested in finance
b) wondering what the real cost of the bailouts are
c) from the UK
be sure to spend 30 seconds of your day taking a look. See the slides here.
For months, the British public have had to listen to Prime Minister Brown and Chancellor Darling on the news explaining how ‘robust’ the UK economy is and how ‘well placed’ it was to handle the credit crunch.
It now seems that it was ‘robust’ enough to be saddled with massive amounts of debt and ‘well placed’ enough to require them to borrow nearly 95% of GDP!! Imagine what might have happened if the UK economy was in a ‘poor’ position!!
Personally, I don’t believe a word of it, but if you do, then you can at least now have the pleasure of realising that the UK economy is heading for something akin to collapse. Any government taking on borrowing like this is either heading for default on it’s public sector borrowing or crippling inflation. Or perhaps both.
Either situation would likely be a disaster for private investors, those holding units in funds in bonds or stocks and much else besides. Certainly those with fixed incomes would be in a very difficult position…