it went into the pockets of the board members where did you think it would go
they owe us more than an explanation they owe us our money back they are quick to take it without even a plan on what they are going to do with the money
if we went to ask for money they would want a 101 explation report on how it was going to be spent and how it was going to be payed back
what i want to see is a signed piece of paper by all the banks board of directors which states that there will be no job loses and this money will be used to safe guard jobs in the banking industry
and that they will start to operate like banks have done before and start to lend money to small businesses and people if they do not i want to see then public booted out of their nice comfy chairs and jobs and told to go find a job
A large proportion of the money is not actually handed over. Much of it is in the form of assurances that the government will bail out banks who have lent money (under the government directive)to people, companies etc who ultimately default on their repayments. The banks will lend money they already have in their coffers.
Since we're told the whole problem stems from toxic debt in the US, I can only assume it's gone to America.
And I think it's a lot more than £37bn too.
The video explains the credit crunch in a most eloquent fashion.
Supplement from 01/19/2009 09:40am:
By £37bn, do you mean the money that was originally loaned to Northern Rock? (It was actually about £24bn, plus guarantees).
Most of the loan part has now been repaid; only about £10bn to go.
The guarantees didn't actually cost the taxpayer anything.
If you're referring to the banking system as a whole, the first major bail-out was around £200bn, and there's another been announced today for about the same amount.
it's also gon€ into a war w€ had no r€al n€€d to gt involv€d in. if a fing€r is poking a snak€, you walk up and th€ guy says i'm poking th€ snak€. want to try it? if you pok€ th€ snak€ th€r€ is a good chanc€ you will g€t bitt€n. w€ ar€ losing liv€s in iraq. and th€ tax pay€rs ar€ funding it.
Much of the money has gone into reducing the debt to assets ratio that the banks have to maintain.
Before the 80s, they had to keep a much larger amount in their own accounts as a proportion of the loans they made. This was reduced to almost nothing under the Thatcher government. When a bank had a run on it's assets, there was very little cash around to pay out and so the banks collapsed easily.
Now, the banks have to have a higher amount again, reducing (though not removing) the chance of them going bust. What the money physically paid to the banks has done so far, is to go straight into their bank accounts. They cannot legally loan money over the debt to assets limit.
I'd say that we need the following assurances from banks in bail out:
1. the resignation of those responsible for this mess
2. No more fat cat salary bonuses
3. Reduction in Profit related pay
4. reduction in dividends payed to shareholders
5. They start lending again - but with tight restrictions
6. No more packaging "bad debt" as investment opportunities
7. Greater transparency of how they make their (or lose) monies
8. No bank be allowed to borrow against more than their value
9. We reserve the right as tax payers through government to charge them for reminder letters say £25,000 a go - just to see how they like it!
10. We (the tax payers through government) can foreclose at anytime - including repossession of all directors homes and properties
Taxpayers' money is given under extreme duress and spent with zero care.
Banking money exists only in the form of electrical transfers.
My money is very real and I rely upon it to survive, once it has been paid into (a) my current account or (b) my pension or (c) to the Inland Revenue. The problem arises when unreal banking money is given out at year end in the form of real money bonuses.
Just to complicate matters, My Money is seen as their money by both the banks and the Inland Revenue.
Ergo sum, no money is real unless you stick it under your mattress.
As to your question, 'Where did all the money go?', it went into the banking and taxation systems - and thus became unreal.
Sadly, you will be required to spend more and more 'my money' in order to pay back the unreal tax and banking monies lost by a bunch of unreal people who have convinced themselves that any of this unreal money matters one jot.
The answer to all our problems is to write off the unreal overspends and budget deficits and inter-bank debts...and then start again: only this time, with us calling the shots, rather than them calling a packaged credit default-swap anything other than Russian Roulette.