Banking Crisis

Today, Alistair Darling, the Chancellor of the Exchequer, announced the recapitalisation of the banking system to prevent its collapse which would lead to financial meltdown throughout the economy! Here I am watching the news announced live with Mum. You can see my reaction when I heard how much money this bailout was going to cost!

Northern Rock was nationalised last year when it almost collapsed. Then last month, Lehman Brothers did collapse and since then there has been talk of another great depression if the banks fail. It is hoped that today's action of using taxpayers' money (a lot of it) to buy bank shares will prevent a collapse.