Thursday, Jan 24, 2008
The mother of all bailouts required
Times: We must name our price
"Governments are going to have to bail out the banks; in return they must change their ways"
"Either they will have to accept a long period of financial paralysis, leading inevitably to a deep global recession and maybe even a Japanese-style decade of depression or they will have to step in with a Plan B, involving public sector intervention of some kind that overrules the judgement of market forces."
Posted by happyrenterz @ 05:08 PM (506 views) Add Comment
5 Comments
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1. mark said...
Oh my how the Times have changed....lol
2. harold said...
"...involving public sector intervention"
I.e., creeping socialism. Wake up UK.
3. enuii said...
Any Public Sector involvement will end in tears due to the shear incompetence of those in charge, we have had enough examples in the last 10 years to show us the shear level of financial waste that would result.
'Industrialists often ask why bankers should get government support that is not available to other businesses that run into trouble. But the answer is quite simple: banking is different from other industries because depositors' savings must be protected and, even more importantly, because a breakdown in bank lending has catastrophic and universal effects on the economy as a whole.'
Why should the ultimate holder of government expenditure (the taxpayer) bail out the very financial institutions that have deceived, swindled and exploited them!
4. paul said...
"involving public sector intervention of some kind that overrules the judgment of market forces"
Shame on him. To suggest that these investment banks, after reaping billions in profits and personal bonuses should now be bailed out by the taxpayer is a heart-stoppingly daft idea. People would march up to Westminster with scythes and pickaxes if the government had a bed-in to bail out the investment banks.
Nope. Japanese style depression it is.
5. M3 said...
Er, wasn't the Japanese lost 'decade' (still continuing to this day, last time I checked) caused precisely by massive state intervention, the government's unwillingness to let banks fail?