Someone is earning their salary at RBoS...

[f4f3]

I can't believe that the big story tonight is the bank's ex boss and his salary, instead of the £20 billion losses the bank ran up last year, and the billions we are putting into pulling them out of the fire...

Comments

[parthenia14.livejournal.com]

I think it's the very big numbers. You say '20 billion' and people glaze over, unable to imagine the colossalness of the amount. On the other hand you say 'pension of £650,000 at age 50' and people have a good enough idea of that to get very very properly outraged.

[f4f3.livejournal.com]

I suppose that's true, but I still think the story is being spun very adroitly, and with eager participation from all the political parties.

[chickenfeet2003.livejournal.com]

Whats £20 billion here or there. The US budget says they are going to run a $1.75 trillion deficit this year.

[f4f3.livejournal.com]

Hmm. I was trying to do the sums on what it would cost to give every unemployed person in the UK a million pounds. 2 million million is how many billions?

And almost all of that money would come straight back into the economy, unlike the stranded costs of the banks. Hmm, I like it.

[anthrokeight.livejournal.com]

Isn't that what helped cause the economic meltdown and insane inflation in Argentina?

Although, if you're going to have a meltdown, you might as well make it happen by giving people money as opposed to shareholders.

[f4f3.livejournal.com]

Well we'd never do anything like that. We'll have quantative easing instead... From the men who brought you structured investment vehicles...

[chickenfeet2003.livejournal.com]

Well in many ways the cause of the current crisis is "insane inflation" in the US. Greenspan and the other geniuses decided that "assets" should not be included in inflation calculations. Net result, nobody took action as a result of grossly inflated real estate prices because they "didn't count".

[f4f3.livejournal.com]

Much the same over here, where smoke and mirrors persuaded most people that soaring house prices were a good thing...

[anthrokeight.livejournal.com]

Lalalalalalala no one is listening 'cause look! Piles and piles of MONEY!

[f4f3.livejournal.com]

And have you seen how much my house has gone up in value this year?

[chickenfeet2003.livejournal.com]

two trillion... or about double the US deficit

[f4f3.livejournal.com]

Quite a bit less than what we (sorry, I) have guaranteed the banks, though.

[chickenfeet2003.livejournal.com]

Are the UK guarantees that big?

[f4f3.livejournal.com]

No, but the possible exposure is - I'd need to go off and look at the figures again, but I'm sure Peston was bandying about trillions a couple of weeks ago.

[f4f3.livejournal.com]

I was talking out of my arse - Peston was talking about Western economies as a whole, not just the UK.