Thursday, 16 October 2008

Union City Blues.

Interesting political developments following the £30 billion buyout of two "Scottish" banks by the UK Treasury and taxpayer.

Mr Smith isn't an economist, unlike Scotland's First Minister Alex Salmond MSP who used to work for RBS, one of the banks bailed out, but even he can see that the UK government covering a country ten times the size of one covered by a possible independent Scottish government would have an easier time coming up with £30 billion. Mr Salmond seems to be suggesting otherwise, but Mr Smith thinks that the current economic crisis has severely dented the SNP's plans for independence.

The last two week's have demonstrated more clearly than anything else the benefits of being part of the Union, whatever the downsides.

"Prime Minister Gordon Brown said yesterday an independent Scotland could not have bailed out its struggling banks. He said the financial strength of the United Kingdom made a £37bn capital injection possible for banks including the Royal Bank of Scotland and HBOS."

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