The policy story is simple: The cliff deal (plus expected economic growth) does begin to reduce the deficit to levels approaching sustainability, though the red ink begins to flow faster after about five years.

FORBES: The Bottom Line: What the Fiscal Cliff Deal Really Means for Taxes and Spending

Before answering this, let's shove to one side what you might call the RBS and Lloyds paradoxes - which is that, as semi-nationalised banks, the Treasury could simply instruct RBS and Lloyds to increase their appetite for risk, irrespective of the red ink that might flow.

BBC: Can banks be forced to lend more?

To overcome any queasiness about seas of red ink, analysts take refuge in ten-year discounted cash-flow models.

FORBES: Analyze This