Earlier bailouts to need more billions

The following disturbing quotes are from "Gold News"linked here: Today's Telegraph newspaper reports that UK banks – now part-nationalized by the socialist Labour government – will need fresh tax-payer funds if they are to deliver both greater lending to households and business as well as improved "core capital" ratios, as demanded by discredited City watchdog the Financial Services Authority (FSA). The Financial Times says UK chancellor Alistair Darling may extend tax-funded guarantees to business loans and credit in a bid to revive corporate lending. But "banks are being asked to lend significantly more without fully pricing in the risks," says Simon Ward, economist at the ailing New Star investment group. "That puts their capital positions in jeopardy and may mean they need a further capital injection in a year or two." Across the Atlantic in Washington, a Congressional vote is now widely expected on a $15 billion rescue of the "Big Three" US car makers. Global auto sales are predicted to end 2009 more than 8% below last year's levels according to new research from the Global Insight consultancy. A report in the Wall Street Journal says insurance giant American International Group (AIG) owes $10 billion on failed trades that are not covered by the US government's $150bn bail-out. The German Finance Minister makes some sensible comments on Britain's totally out of control and completely mindless government, link here.