The UK's bailout plan

[Shin666]

BBC NEWS | Business | Rescue plan for UK banks unveiled

Do you think this will be effective?

[Dr. Silence]

No, This is why we may quite well see a depression, not recession, hit our shores. People have been buying up big with money they don't have. It's inflated house prices that has caused this mania, with people thinking they are rich because the house next door has tripled in price, so they might as well borrow against the house, and use it as an ATM. So you always need more money in the future to pay for the money borrowed in the past. This system can not handle the amount of growth we have had in the last 30yrs. We are at a point where we need more future to pay back the money than anyone could possibly foresee. Also a deviation from the gold standard has helped this become a issue.Also, fractional banking has some to do with it as well, that and the way US wall st invesment bankers have pretty much created complex investment vehicles that no one understands and then on sell to others who think they are buying a good investment when really it is crap AKA sub prime mortgages. Then people come in to collect and it all falls to bits.......

Then you have git's like Bush spending more on the war than the amount that would be required to stop whole subprime crisis........over $500 billion. It looks like the latest bubble is in energy (including oil) as the fears of it coming to an end close. Anyone remember similar statements about housing? "Buy before they get too expensive" "house prices only ever go up" "they aren't making anymore land" etc etc.Similar comments being made about energy wouldn't you say? I see some major changes to the world banking systems as this current system fails to deal with the population growth, without having the negative side effects of inflation or stagflation.

A major change is about to happen............................................ ..............