Would someone please explain how a €7 billion deficit became a €400bn ‘surplus’ overnight?

THE Government’s bailout of the banks is difficult to understand.

Last week, they were telling us there was a €7 billion deficit the taxpayer would have to account for in the budget. We were warned this was to be the toughest budget ever and that everyone would be affected.

Then on last Tuesday morning, after a chat among themselves, the politicians told us they were going to underwrite the banks to the tune of €400 billion. Where did all those extra billions come from overnight?