cancel
Showing results for 
Search instead for 
Did you mean: 

Portugal Is Skint,

geoffp0
Grafter
Posts: 185
Registered: 02-03-2011

Portugal Is Skint,

I said it had to come UK has plenty of money they will help bail them out:-
http://uk.news.yahoo.com/5/20110407/twl-britain-faces-3bn-bill-in-portugal-b-3fd0ae9.html
15 REPLIES
Community Veteran
Posts: 3,826
Thanks: 44
Fixes: 1
Registered: 24-09-2008

Re: Portugal Is Skint,

"The the minute a country pays for another country there will be so much hostility in the creditor country that the politics of this will become impossible...
http://news.bbc.co.uk/today/hi/today/newsid_9435000/9435704.stm
geoffp0
Grafter
Posts: 185
Registered: 02-03-2011

Re: Portugal Is Skint,

Totally agree there. Smiley
David_W
Rising Star
Posts: 2,293
Thanks: 29
Registered: 19-07-2007

Re: Portugal Is Skint,

Portugal rejected plans from the EU to manage their debt and instead want a hand out, why should be bail them out when they refused measures which may have prevented the need for a bail out?  We should refuse to bail them out, why put our own economic recovery in danger to bail out a country which refused to help itself?
Community Veteran
Posts: 7,912
Thanks: 593
Fixes: 8
Registered: 02-08-2007

Re: Portugal Is Skint,

Cameron seems happy to readily agree that our money should be spent bailing other countries out. That's fine if we had no problems here but there are a lot of people either suffering or going to suffer as a result of our dire financial position and there are few MPs who seem to want to challenge Cameron on this.
I Don't want to sound like TOM but it will be interesting to see what happens over the next 12 months.
Community Veteran
Posts: 3,826
Thanks: 44
Fixes: 1
Registered: 24-09-2008

Re: Portugal Is Skint,

Yes! ..............but it's our (UK)  money that is going to enable Portugal to repay loans that they borrowed from European Banks in the first place (RBS to the tune of £1.4bn as an example).
What is annoying is some ‘Banker’ received a bonus for negotiating the loan in the first place, and then will probably receive an additional bonus as the loan is repaid.
We're not bailing out Portugal, we're proping up our (corrupt)  financial system.
Community Veteran
Posts: 18,545
Thanks: 191
Registered: 12-08-2007

Re: Portugal Is Skint,

I agree with David W, Portugal has done nothing to try to deal with their own problems and it's not the first time they've had to go cap-in-hand for a bailout. They got money from the IMF in 1983.  How long before Spain follows them Undecided  We can't carry on bailing out countries at the expense of our own recovery.
@gleneagles, Cameron can't do anything else but help the bailout.  It was an agreement signed by Alister Darling that makes us liable. Angry
David_W
Rising Star
Posts: 2,293
Thanks: 29
Registered: 19-07-2007

Re: Portugal Is Skint,

The worst part is, for Portugal at least, they are getting a bail out which will help them in the short term, long term they have to put in to place the austerity measures anyhow, and not just normal ones either, part of the package of recovery will probably be an EU mandated austerity plan which will make the average Portuguese person worse off than if they had accepted their own austerity measures and their government won't be able to do anything about it.
The big question is, how close is the UK to folding?  Our economy seems to be shrinking (probably due to so much of it being in the banking sector), we are already taxed to the back teeth even before the austerity measures came into effect, we can't take more taxation so are we going to struggle as a county to get out of this financial pit?
Community Veteran
Posts: 18,545
Thanks: 191
Registered: 12-08-2007

Re: Portugal Is Skint,

I agree with your comments about Portugal but a little more optimistic  about the UK.  I think we're in for a hard time but I think we have acted early to sort things out. 
David_W
Rising Star
Posts: 2,293
Thanks: 29
Registered: 19-07-2007

Re: Portugal Is Skint,

I think I'm more worried about a domino effect.  After Portugal, Spain may crash, then because Spain does, another crashes and so on and so forth, actually that should really worry me as I'm with Santander now, eep!
Community Veteran
Posts: 3,826
Thanks: 44
Fixes: 1
Registered: 24-09-2008

Re: Portugal Is Skint,

Quote from: David
as I'm with Santander now, eep!

@David W:- Working with them, or Banking with them?
One of my business accounts is with RBS, since the sell out of part of the Branch network to Santander I'm considering switching business accounts.
Am looking for a bank that does not take risks!
David_W
Rising Star
Posts: 2,293
Thanks: 29
Registered: 19-07-2007

Re: Portugal Is Skint,

Banking, I was with Alliance & Leicester but they were purchased by Santander so I'm now with them, oddly my new sort code doesn't work, weird that.
Community Veteran
Posts: 18,545
Thanks: 191
Registered: 12-08-2007

Re: Portugal Is Skint,

I'm with Lloyds and they've just appointed an ex Santander man as their new CEO.  Since he arrived at Lloyds he has appointed 2 more Santander people to senior positions at Lloyds. I hope this doesn't signal a more risky approach by the bank.
David_W
Rising Star
Posts: 2,293
Thanks: 29
Registered: 19-07-2007

Re: Portugal Is Skint,

It's unfortunate but the banks have us over a barrel in the UK.  We cannot hit them with huge taxation, they would move abroad.  We can't force them to break up, they would move abroad.  Anything we try to do to the banks to reduce the risk to the consumer may dent the profit margins of a bank so they would just shift their HQ's to another county which in turn would cripple an economy that is so heavily reliant on the financial services industry.
We can't even really allow the banks to fail, no matter how much risk they put themselves in, if one fails another probably will, and then another and another.  The problem with that sector though, they get paid an insane amount of money and they spend an insane amount of money which of course pushes inflation up for everybody.  Maybe writing in legislation that a bonus may not be greater than 50% of the annual salary would be a start, although something like that would make the bankers go to other countries, over a barrel we are indeed.
Community Veteran
Posts: 3,826
Thanks: 44
Fixes: 1
Registered: 24-09-2008

Re: Portugal Is Skint,

Not sure
The Dutch had a go at ING over the bonus culture http://www.guardian.co.uk/business/2011/mar/27/dutch-bankers-bonuses-axed-by-people-power
When the bonuses were announced, the Dutch via social networking sites arranged a 'run on the bank' by as many account holder as possible transfering their accounts, the Dutch government stepped in and 'taxed' any bonus at 100% .
Bit of organisation it could happen here. It is the threat of failure.
I'm looking for a low risk bank that doesn't go with the Bonus culture, so far Co-op bank seem to be OK, am open to ideas