Helping out the banks.

[EMDEE]

Is it a good thing that the Government is using so much taxpayers' money to come to the rescue of so many improvident and profligate financial institutions? It would appear that they do not have much choice in the matter.

[ionnsaigh]

Funny how they revert back to the Socialist economic platform of yesteryear - Nationalisation.
Grab your fiddle - Rome burns.

[EMDEE]

Funny how they revert back to the Socialist economic platform of yesteryear - Nationalisation.
Grab your fiddle - Rome burns.

As I say, there is little choice in the matter.

[Govangirl]

There may very well be no choice in the matter but there should be severe conditions on the bank executives who were so reckless with their decisions. I read that the chief executive officer of the RBS received a £2.8m (yes, that's right - million) bonus last year over his £1.3m salary. His pay, along with the other bank executives who were so irresponsible should have a pay cut and Lord help them if it is announced that they will receive a bonus. This kind of greed needs to stop now.

Who's going to bail out the poor souls who have lost money, business or their houses by being a customer of the RBS?

[EMDEE]

These bonuses are truly unbelievable, and it would be interesting to know if they may be recouped from the recipients as being gratuitous alienations, as the banks must have known that a crisis was approaching.

If the banks didn't know that a crisis was approaching, that says even more about their ineptitude.

[ionnsaigh]

At the end of the day, I have no doubt that ineptitude and greed, both played a part in the current situation. However it's like blaming poor work on bad tools - when the work itself ( towing an iceberg to the tropics to sell ) is doomed for failure.
The inherent contradictions of Capitalism guarantee - the bursting of the bubble. This comes as no surprise.
Take two tugs - ineptitude and greed - both charged with the task above. Greed would undoubtedly get to the Equator first - however the chance of greed selling more ice - are no greater than ineptitudes. As both have embarked on an impossible task.
The mission in itself.

Captain Birdseye

[Trapper]

Agreed! The capitalist Vultures are coming home to roost!

[WTC]

Treasury involved in Nigerian web scam?

3 weeks ago, you couldn't make it up .......................

http://4.bp.blogspot.com/_ZI9ZC-oL5KQ/S ... 19+Big.jpg

[ionnsaigh]

Perhaps this current fiasco will refocus the public mind re, banking. How reassuring - that once we gain power - we will nationalise with immediate affect, oh an see when were at it - we will grab oor oil as well.

[Trapper]

Not my words but from a letter in the herald form a year or so ago:

Sir Josiah Stamp, one time governor of the Bank Of England, affirmed as long ago as 1927, that “the modern banking system manufactures money out of nothing. The process is perhaps the most astounding sleight of hand that was ever invented…….Bankers own the earth. If you want to be slaves of bankers and pay the cost of your slavery, then let the bankers continue to create money and control credit”

My sentiments exactly!!

[Kevin Mc]

I think it is a necessary evil, though I've no idea if it will work.

However, I don't think it is just the banks to blame. There are plenty of people who maxxed out their plastic buying Plasma TV's and so on. Didn't they say last year that the total debt for cards and unsecured borrowing was £1 trillion? These peeps should never have been given so much credit in the first place, but then again no-one forced them to spend the money.

One thing that surprises me is commentators saying the impending recession might last beyond 2009 (they were saying just a few months in 2009 at first). I can't help thinking this recession will last for years

[Govangirl]

However, I don't think it is just the banks to blame. There are plenty of people who maxxed out their plastic buying Plasma TV's and so on.(

Kevin. I so agree with you... but.... My son has just gone to Uni and had to apply for a bank card in order to have his student loan paid in. They automatically gave him a £3,000 overdraft - 'free' they called it! I made it clear to my son that he must tell them he does not want this facility and if he ever does use it then he can forget about the Bank of Mum and Dad. But it just shows you the pressure they put on vulnerable people. Every time I buy something from a shop, they ask me if I want 20% off by getting a storecard. I have never weakened but I tell you, I would if I was fearful of where the next penny was coming from, if I couldn't afford to get my kids their school uniform, if I was struggling on benefits and if I only had 63 pence to get my family through the week. The banks and credit companies have preyed on these people for years. When my husband and I got married 30 years ago, we never bought anything unless we saved up for it first. Now, young people are starting off with crippling student loans, coping with crippling mortgages and trying to pay crippling utility bills.
I would be very reluctant to 'blame' these people - and all this under a Labour Government. They're getting close to the damage caused by Thatcher.

[Kevin Mc]

When my husband and I got married 30 years ago, we never bought anything unless we saved up for it first. Now, young people are starting off with crippling student loans, coping with crippling mortgages and trying to pay crippling utility bills.

I'm often amazed at the attitude of people on these shopaholic TV programmes. Think one was called "The Bank of Mum and Dad" There was a girl in her early 20's being interviewed who was getting called several times every day by her credit card companies. She was at her limit and I think using cards to pay off other cards. Only she'd reached the limit on them all. She didn't seem that bothered at all, and was continuing to spend as normal.

Sorry - I just can't remember the programme's name (may have been the one with Martin Lewis from moneysavingexpert.com)

I used to be one for car loans, and not too bothered about going overdrawn. I used to think of the overdraft as a spare pot of cash to dip into if needed The Mrs has put me on the straight and narrow now though, and we don't have anything outstanding other than the mortgage. I would be horrified if I went overdrawn now.

Also shown was a Pawn Brokers (is that the right spelling?) Anyway, they were doing a roaring trade.

I've always thought in the past, that if I lost my job and were struggling, that I'd sell the house. Only thing is the Equity is reducing daily. We're lucky in that we bought the current house in 2001, though I do think that the value of our house will not be too far off what we paid in 2001 when it hits the bottom!

I've not proof read this, so hope it's okay.

[£3.73]

Today's headlines ... RBoS "nationalised" ....cost £15 Billion

Oh really ... well, RBoS to my understanding has 2 trillion is assets !
Who did the maths here?

Tonight America is following suit and "nationalising" it's banks ...

[Tosh]

: They're getting close to the damage caused by Thatcher.

Who do you think deregulated the banks and the markets?