Would it be possible for the next UK Government to tell the banks to politely F Off?

[TheBigotBasher]

The guarantees and loans were to get the banks out of trouble, they are now out of trouble. The interest on the debts, which needs to be paid to the banks will cripple whoever is next in power. Civil Servants have advised Universities and Local Government to expect 30% reductions in grant. Housing Benefit budget is being cut - despite rising demand. This is all before any other cuts enter they system.

If an individual was in this situation, I would suggest walk away.

I remain to be convinced that the Government can not do so.

[LeftishBrit]

1. Given the likely nature of the next UK government - no, won't happen.

Can anyone seriously imagine Cameron and Osborne doing anything to reduce the influence of the banks?

[muriel_volestrangler]

2. From whom and what are you suggesting walking away?

Government debt isn't chiefly owned by RBS, Barclays etc (they may brokers the market in it, but they hold very little of it). It's mainly owned by pension funds, insurance companies, international lenders (eg China, Japan), bond funds and private investors. Walk away from them and you ruin everyone's pensions, crash the pound, and worse.

The government had to lend to the banks. They're not borrowing that money from the same banks.

[TheBigotBasher]

3. Kind of me going a bit mad when I was reading

budget proposals Councils are having to consider for next year.