No to Taxpayer guarantees of BAE Systems/ BA debt
Hildy Johnson | 16.01.2009 12:02 | Anti-militarism | Energy Crisis | Social Struggles | Sheffield | South Coast
According to Robert Peston many of Europes largest companies are approaching the time when they have to renew their loans. But banks and pension funds are reluctant to lend and so it would appear that the Government is preparing to offer guarantees on the debt to 350 of the UKs largest companies including BA and BAE Systems.
Since late last year the US government has been providing guarantees for lending by banks and money market funds to some of its largest companies. Now a similar scheme is being proposed here with taxpayer cash being marked up to underwrite such loans.
So for example if a pension fund makes a loan to BAE Systems and the company goes bankrupt the loan will be paid off by the taxpayer. Other companies that would be beneficiaries of the scheme are the Daily Mail Group, BSkyB, BHP Billiton, Anglo/American, Primark, Easyjet, Glaxo Smithkline, Marks and Spencer, Royal Dutch Shell, Rolls Royce
For full list
http://uk.finance.yahoo.com/q/cp?s=%5EFTLC
The honourable Mister Peston writes in his blog ''If you knew that you were lending to the vendor of your knickers, or the provider of your broadband service, would that change your attitude to them? As swathes of the private sector receive vital financial support from taxpayers, the balance of power between citizen and big business will change. But for better, or for worse?''
Strangely he makes no reference to the arms manufacturers, mining companies, airlines and oil companies.
''One reason for doing this is that we're about to see a big bulge in the maturing of loans to companies. As I pointed out in the post "2009 is payback year", for European companies in aggregate there's a trillion dollars of bonds that have to be repaid or rolled over during the coming 12 months.''
http://www.bbc.co.uk/blogs/thereporters/robertpeston/2009/01/taxpayer_support_for_big_compa.html#commentsanchor
So basically what he is saying is that if many of these companies don't receive this guarantee they will not be able to obtain new loans and will face insolvency or bankruptcy.
I'm going to repeat that
So basically what he is saying is that if many of these companies don't receive this guarantee they will not be able to obtain new loans and will face insolvency or bankruptcy.
This would seem to be an issue around which mobilization would be sensible. No to guarantees of BAE et als debt. Result, massive corporate failures as per the free market model that has been foisted on the rest of us.
Remember, if the hospital was not cost effective it had to be closed, as did the school. We have been told for over 30 years
THE MARKET KNOWS BEST
THE MARKET KNOWS BEST
THE MARKET KNOWS BEST
THE MARKET KNOWS BEST
THE MARKET KNOWS BEST
Would it be our fault then, if we were to now repeat that Mantra to its originators. My proposal is that we let them go to the wall. The captains of market forces expect help in the storm while they were unwilling to help those in a different world struggling in a different storm.
The conditions are ripe for change
So for example if a pension fund makes a loan to BAE Systems and the company goes bankrupt the loan will be paid off by the taxpayer. Other companies that would be beneficiaries of the scheme are the Daily Mail Group, BSkyB, BHP Billiton, Anglo/American, Primark, Easyjet, Glaxo Smithkline, Marks and Spencer, Royal Dutch Shell, Rolls Royce
For full list
http://uk.finance.yahoo.com/q/cp?s=%5EFTLC The honourable Mister Peston writes in his blog ''If you knew that you were lending to the vendor of your knickers, or the provider of your broadband service, would that change your attitude to them? As swathes of the private sector receive vital financial support from taxpayers, the balance of power between citizen and big business will change. But for better, or for worse?''
Strangely he makes no reference to the arms manufacturers, mining companies, airlines and oil companies.
''One reason for doing this is that we're about to see a big bulge in the maturing of loans to companies. As I pointed out in the post "2009 is payback year", for European companies in aggregate there's a trillion dollars of bonds that have to be repaid or rolled over during the coming 12 months.''
http://www.bbc.co.uk/blogs/thereporters/robertpeston/2009/01/taxpayer_support_for_big_compa.html#commentsanchor So basically what he is saying is that if many of these companies don't receive this guarantee they will not be able to obtain new loans and will face insolvency or bankruptcy.
I'm going to repeat that
So basically what he is saying is that if many of these companies don't receive this guarantee they will not be able to obtain new loans and will face insolvency or bankruptcy.
This would seem to be an issue around which mobilization would be sensible. No to guarantees of BAE et als debt. Result, massive corporate failures as per the free market model that has been foisted on the rest of us.
Remember, if the hospital was not cost effective it had to be closed, as did the school. We have been told for over 30 years
THE MARKET KNOWS BEST
THE MARKET KNOWS BEST
THE MARKET KNOWS BEST
THE MARKET KNOWS BEST
THE MARKET KNOWS BEST
Would it be our fault then, if we were to now repeat that Mantra to its originators. My proposal is that we let them go to the wall. The captains of market forces expect help in the storm while they were unwilling to help those in a different world struggling in a different storm.
The conditions are ripe for change
Hildy Johnson