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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.
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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