UK mega bailout unveiled

Darling to the rescueChancellor Alistair Darling in a clip on Youtube in a BBC interview was defending the bleak economy and kept repeating: "We are doing everything that is necessary to take action to help the economy through what is undoubtedly a difficult time..."

He told the interviewer that the financial crisis was the worst in 60 years....

But the interviewer had to keep on egging him on to ask why he was painting such a bleak picture and not as Chancellor's often do, at the behest of their bosses to big up the economy.

After all, Gordon Brown was saying a few days ago that the economy was in its best position to survive the credit crunch.....

See http://www.youtube.com/watch?v=lpQHVnYHwkM.

UPDATE

Chancellor Alistair Darling will plough £50 billion into eight UK banks to help the financial system get back on its feet - hoping to also allay taxpayer fears that their hard earned money is safe as houses.

Some of the High Streets biggest players will be bailed out, including Barclays, Royal Bank of Scotland and Lloyds TSB.

In return for the bailout, the government will have shares in the banks - and others not listed in the bailout will be able to apply for the scheme later.

RESPONSE

GUIDO FAWKES comments on his blog: "The government bail out, never mind the Bank interventions, is secured against the hard work of Britain's 28 million taxpayers. The government is risking more than £10,000 for each taxpayer."

See www.order-order.com.

The UK government hopes that the rescue plan will encourage the banks to start lending to each other again. Ofcourse, there are strings attached, reports BBC NEWS online. Those who accept government loans will be expected to curb bumper payouts to executives - as well as dividends for other shareholders.

BBCs Business editor said: "Taking taxpayers' money will not be a licence to trade as normal." The British prime minister GORDON BROWN slammed the banking system this week saying that some traders had no morals when it came to trading.

Darling will make a statement to parliament later on today regarding the announcement.

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