News that each taxpayer has become, in effect, a £16,500 banking shareholder has completely changed the nature of the banking system in what has been described “the biggest nationalisation in modern times.”

Meanwhile the new 4.5% interest rate is expected to immediately ease the strain 5 million mortgage holders. If lenders pass on the cut completely to borrowers, the change will knock off almost £50 in monthly repayments on an average mortgage of £150,000.

The £500 billion lifeline and interest rates cut were meant to have a positive effect on the financial markets, but they reacted explosively and the FTSE index of top stocks was 5.2% down by the end of trading yesterday.

In response, the International Monetary Fund warned that a world recession was just around the corner and called the economic downturn “the most dangerous financial shock in mature financial markets since the 1930s.”