...and it had absolutely no effect.
Why? very simple: public perception.
Really this is a quite a good rescue package - well thought out, with some sensible impositions on the banks in question (like no bonuses for executives). So I guess the intention was to bail out the banks (done) and boost public opinion by a) guaranteeing the cash (done) and b) show the banks as being punished.
Sadly that one went un-noticed. In fact public opinion seems to be that they got what they deserve but that it's not enough!
So then the general populous listen to the media who tell them 2 important points:
- No dividends this year
- The tax payer is shelling out for these banks in the short term.
Your average joe has no idea of long term money management and absolutely no clue about how this is all going to work.
So the result is that people still are scared shitless about the banks: even though mostly things should be fine now.
The past culprits in this fiasco have been the government and the banks themselves. Sadly they have managed to scrape themselves out of the problem and make up some sort of fix. And so the future culprits, the ones who now have the potential to destory our economy are the public masses who do not understand the issue and the media who are still misrepresenting it.
Someone with credibility and nouse needs to stand up in front of everyone and explain - in a clear concise way twhat is going on and why joe public need to help fix this!
I vote for Boris Johnson :D
Update: Seems I was wrong - it was just a delayed reaction on the markets. However IMO my point about public perception / fault still stands.