Borrowing

The Tories have resurrected the phrase the magic money tree which has been commented on by me, and Edward Snowden. But for the thick, Damien Green, that’s you that is, here’s how the financial markets work and how Labour will pay for those nationalisations that require compensation.

They borrow a wodge of money at the current rate about 1% for say 25 years, and buy some companies currently returning 5% (or more) ROI.

When I was doing sums at school, 4% is higher than 1%. Perhaps we should buy some more stuff because it’s such a good deal.

Borrowing

One thought on “Borrowing

  1. Dave says:

    The railway re-nationalisations won’t require compensation because they have only brought the franchise for a specific period. A Labour Government won’t renew them.

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