Not only will there be a huge $20 billion going in to the bank for fast recovery, there will also be a large amount which is said to be in the range of $118 billion which will be used as a guarantee in case of bad assets coming through the bank.

The troubled bank first starting seeing signs of a large fall when the bought out Merrill Lynch which saw them lose on the first quarter 2008 around $15.30bn.

The money that has been put into the bank isn’t a gift from the government, the money will be used almost as a share holder, with the government/country, will be holding stakes in the bank.

Problems could be seen from the first financial year when the Bank of America reported to have lost in the region of $1.8 billion, which shows a staggering effect in the worlds economy as compared to the year previous they actually made profits of $280 million. The US treasury said today

“The objective of this programme is to foster financial market stability and thereby to strengthen the economy and protect American jobs, savings and retirement security,”

“In addition to the $20bn cash injection, the Treasury will “provide protection against the possibility of unusually large losses on an asset pool of approximately $118bn of loans”

The American government seems to have an endless supply of money from this chart it shows how much money has been put into bail out packages so far.

$138bn bail out agreed for Bank of America is a post from: Bad Credit Loans

Since July to October the economy has shrunk by 0.5% the first time the economy has fallen since the 90s. It would now be down to the government and mainly banks to do something drastic now to avoid the country sinking deeper in to a depression.

Even though the spending that was already made was not enough, apposing party Tories and David Cameron agreed that this was just a waste of tax payers money, and we would all regret the big spending now pay later approach. Even though these comments were made by Tory leader Cameron, top economist disagree and back Gordon Brown on the big spending and wants to see more put in to the pot to insure progression.

Even though the government had dropped the average VAT rate down to 15%, economist believe that this will not be enough for people to start spending again. This isn’t going to be a relaxing Christmas for PM Gordon Brown and even though many drastic approaches have been made this still will not be enough to help a struggling Britain, with the economy shrinking at a faster rate then any one expected.

With the fall in production and many companies suffering, unemployment looking to boost to the 3 million figure next week, Labours poll rating are likely to take a battering this year, and the next.

Alistair Darling would need £60bn to bail out Britain is a post from: Bad Credit Loans

Although a Indian owned company Government say that although this is a internationally owned company that manufacturing and jobs were still based in the UK. The car industry is having it’s toughest times that an industry has ever seen, with Jaguar not being the only car company to be struggling in these financial times, other car giants Ford, Chrysler  and MG only last week went in to US congress in an attempt to get tax payers money in the region of $14 billion in fact. The bill did not go through, and more trouble is about to come the industries way. From November of last year production and sales were down by 33% which is a massive loss.

Many fear that if money was funded to Jaguar that this still wouldn’t be enough to keep the company going, with top economist saying that this type of budget bail out, would only just keep the company going for the next three years. Jaguar who currently employees 15,000 workers across the UK would be desperate to get this funding to keep them in jobs, but wide speculation say that these jobs will be lost as other ministers will oppose the bail out package for a company that’s not even British and is now in foreign hands.

Jaguar £1bn tax bail out is a post from: Bad Credit Loans

Top economist in the US had said to say that ‘this would only keep the companies running for a few months, and that the long term effect would take it’s course in due time, with bankruptcy inevitable.’

The figure that these two car companies had in mind was in the region of $14 billion, and more if it comes to it. Yet today is has been reported that US Senate has denied this money to be released. Talks were made by democratic leaders and republicans, many Democrats backed the bail out but they could not get enough Republicans behind it.

Both Bush and recently elected Obama backed the bill, as they say that if this industry was to fall, over 3 million US jobs would be lost, and many more in factories around the world. Originally Ford was also in the line up to receive a backed loan, in case of emergencies and the original bail out figure stood at $34 billion. So Ford had to back down as that original amount would not have been met, and it would be in the interest of Ford to leave MG and Chrysler to lead the way in asking for this money. Both companies now look set to fall. If things carry on the way they are in the car industry, car giants Ford would also follow suit in to bankruptcy.

$14 Billion US bail out rejected is a post from: Bad Credit Loans