Mandelson's UK car bailout...

[Bry Nylon]

Can't recall a bigger waste of £2.3 billion, apart from the £12 billion pissed away on that meaningless VAT cut last autumn....

Today's package will do NOTHING to stimulate consumer demand for new cars. Mandelson ... you

 

[Barrel of Fun]

Amazing how they can magic up these funds for one of our industries that can't effectively compete with the foreign competitor when there are people being denied life saving/prolonging treatment in this country.

 

[ben andrews' girlfriend]

Can't recall a bigger waste of £2.3 billion

Iraq and Afghanistan?

 

[bigc]

Iraq and Afghanistan?

Iraq yes, not Afghanistan.

I know it has become so incredibly linked to that awful "War on Terror" concept but the country was an incredible mess at the start of this decade and a real source of instability. Personally I think all efforts should have continued there as opposed to ever getting involved in Iraq.

 

[Starry]

Amazing how they can magic up these funds for one of our industries that can't effectively compete with the foreign competitor when there are people being denied life saving/prolonging treatment in this country.

Abso-freaking-lutely.

 

[bigc]

Amazing how they can magic up these funds for one of our industries that can't effectively compete with the foreign competitor when there are people being denied life saving/prolonging treatment in this country.

Ahhh but the dead don't vote..

(Except for the Republican Party during the Dubya era..)

To be fair to Labour though, I'm sure the Tories would have done the same thing.

 

[desprateseagull]

what industry is next for the bailout then?? i am sure all of them could put together a good case, to keep hold of their expense account etc..

will companies be suing HM govt for NOT getting one, next?

 

[beorhthelm]

its not about stimulating demand, its all about the cash flow. companies, even profitable ones, need substantial overdrafts to pay the workers and suppliers while waiting on cash from customers and debtors. add in not particuarly profitable or paper profits on intangibale or capital assets and a decent company suddenly finds itself in trouble when the bank reduces or removes the overdraft. these bailouts are loans, not cash injections.

 

[sten_super]

its not about stimulating demand, its all about the cash flow. companies, even profitable ones, need substantial overdrafts to pay the workers and suppliers while waiting on cash from customers and debtors. add in not particuarly profitable or paper profits on intangibale or capital assets and a decent company suddenly finds itself in trouble when the bank reduces or removes the overdraft. these bailouts are loans, not cash injections.

There was a minister on 5 Live last night saying that they aren't even loans; they are guaranteeing loans given by the European Investment Bank (?) which are given to promote 'green' development. I can see the benefit of this, but it's not tackling the actual problem; it's not going to assist cash flows (as I'd guess that there are all kinds of strings attached in terms of timeframe within which the money must be spent), and it will, I imagine, be concentrated in R&D, rather than helping the factory workers and those that are losing their jobs due to an ongoing lack of demand.

 

[Franks Wild Years]

Although I have the upmost sympathy for anyone who may be in danger of losing their job, why are we bailing out companies who have been making billions of pounds worth of profit over the last decade. Why haven't these companies who are presumably experts in the business of business taken the long term view. Its just been quick profits and f*** the future
It just proves in my opinion that the whole 'buy now pay later' attitude is completely arse about face and will always end in tears,. (Can't think of any other cliches for that sentence) And the whole market led economy thang is both financially and morally bankrupt.

 

[beorhthelm]

...why are we bailing out companies who have been making billions of pounds worth of profit over the last decade.

because what the tabloid media dont explain when getting all indignant about "obsence" profits (and the companies dont make a big thing about often) is that alot of the profit is on paper. its valuations of assets, "goodwill" and intangiables. not actual cash. this is particularly the case with the banks, where the value of their outstanding loans was counted as a profit and now has been written down to a new much lower value. Added to that, much of the actual cash profits that are made either go to shareholders (mostly pension funds) or get reinvested back into the business.

 

[e77]

because what the tabloid media dont explain when getting all indignant about "obsence" profits (and the companies dont make a big thing about often) is that alot of the profit is on paper. its valuations of assets, "goodwill" and intangiables. not actual cash. this is particularly the case with the banks, where the value of their outstanding loans was counted as a profit and now has been written down to a new much lower value. Added to that, much of the actual cash profits that are made either go to shareholders (mostly pension funds) or get reinvested back into the business.

I agree with most companies but I used to work for one of the big 4 (or whatever they are now) and every time the profits went up they couldn't boast enough about it.

I know the government had to bail out the banking system but the chief executives of the banks shouldn't be in jobs now.