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It don't add up.....

Yesterday the Chancellor announced that he was going to give a lot of help to the banks. He promised:

  • to spend £50 billion buying shares in the banks
  • to lend them £100 billion in a special "liquidity support scheme"; and
  • to pay out up to £250 billion as a guarantee for the loans that banks give to each other.
Okay so far?

However, the Bank of England says that the total amount of cash in the UK - all the notes and coins in circulation - is £50 billion.

So Mr Darling has promised to give the banks £400 billion - but we only have £50 billion, leaving us £350 billion short.

Will the banks take a cheque???

AND ANOTHER THING.....!

We lend the banks £400 billion -- and then we cut interest rates by half a point? Well that's cost the taxpayer £2 billion for a start!

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