Quote:
Originally Posted by pip08456
Are you for real???
Why did the Government need to spend Billions bailing out banks?
The banks had the money, invested it in dodgy deals and lost it. The money existed to begin with so where's it gone?
Because of the bailouts the Government then had to reduce spending as it no longer had the money as they'd spent it.
Whichever way you look at it someone ended up with the money.
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The money didn't exist in the first place. A lot of it were mortgages that weren't worth that they were labeled as being worth. Money can disappear if the value of something declines, it's not all backed by hard currency.