Jump to content
House Price Crash Forum
Sign in to follow this  
Ted D. Bear

We've Created A Monster

Recommended Posts

I didn't see this article appear on here, which might be of interest to some.

We have created a monster … banks with access to public funds

<snip>

We are emerging from this recession with a new kind of economy: a banking kleptocracy that has captured government and regulators. After a two-year financial crisis, largely of their own making, the banks have been rewarded by massive public subsidies, freedom from regulation and the lifting of anti-monopoly rules. No government will stand up to banks for fear of precipitating another crisis, such as the one that followed the collapse of Lehmans last October. Talk about moral hazard. The banks can return to their gambling table again, confident that the government will bail them out, should they lose. Notice how few bankers lost their jobs and how rapidly bosses of even nationalised banks like RBS have returned to paying themselves multi-million-pound bonuses again.

We may now have six months of "recovery" from the latest trauma, but we have assuredly laid the foundations for another even more epic crash a few years down the line. We have created a monster: banks which have ceased being capitalist entities working in a market, and have effectively become a branch of the state, with a pipeline straight into our wallets. Enjoy

Share this post


Link to post
Share on other sites
I didn't see this article appear on here, which might be of interest to some.

We have created a monster … banks with access to public funds

The costs to society of having debt-based commercially issued money become ever more apparent.

A little thought experiment:

Imagine a society starting its money system from scratch. Some bloke stands up and offers to run the system, but insists that he alone gets to issue the means of exchange and to lend it out at interest to everyone else.

Would you support his proposal or would you prefer that the means of exchange were issued collectively to circulate permanently at no overall cost?

Share this post


Link to post
Share on other sites
The costs to society of having debt-based commercially issued money become ever more apparent.

A little thought experiment:

Imagine a society starting its money system from scratch. Some bloke stands up and offers to run the system, but insists that he alone gets to issue the means of exchange and to lend it out at interest to everyone else.

Would you support his proposal or would you prefer that the means of exchange were issued collectively to circulate permanently at no overall cost?

Neither - I'd want a free market.

As to the OP - it's been this way for at least a hundred years, all thyat has happened is that we are seeing the man behind the curtain for a change.

Edited by Injin

Share this post


Link to post
Share on other sites
Guest DissipatedYouthIsValuable
The costs to society of having debt-based commercially issued money become ever more apparent.

A little thought experiment:

Imagine a society starting its money system from scratch. Some bloke stands up and offers to run the system, but insists that he alone gets to issue the means of exchange and to lend it out at interest to everyone else.

Would you support his proposal or would you prefer that the means of exchange were issued collectively to circulate permanently at no overall cost?

I'd joyfully eviscerate him.

Share this post


Link to post
Share on other sites
I didn't see this article appear on here, which might be of interest to some.

We have created a monster … banks with access to public funds

Yes - this is the thing that gets me. While it seems that the banks have been rescued, the banking system has not. Yet nobody seems to care any more. A big part of the underlying problem was that the banks were too big to fail - so what has been the solution? Create even bigger banks by for example merging Lloyds and HBOS! Unless we see banks pay the price of failure, such as Lloyds/HBOS/RBS/NR/etc being forced to drastically downsize or be broken up and sold off, then it'll happen all over again.

Share this post


Link to post
Share on other sites
We have created a monster: banks which have ceased being capitalist entities working in a market, and have effectively become a branch of the state, with a pipeline straight into our wallets. Enjoy.

I think it cuts both ways.

The Politicians and the Bankers are in bed together, intimately.

The Politicians want to control power (money) by nationalisation.

The Bankers want to control money (power) money through capitalism.

As it has now worked out, they have merged themselves into a

couple, both mutually dependent.

Share this post


Link to post
Share on other sites
Yes - this is the thing that gets me. While it seems that the banks have been rescued, the banking system has not. Yet nobody seems to care any more. A big part of the underlying problem was that the banks were too big to fail - so what has been the solution? Create even bigger banks by for example merging Lloyds and HBOS! Unless we see banks pay the price of failure, such as Lloyds/HBOS/RBS/NR/etc being forced to drastically downsize or be broken up and sold off, then it'll happen all over again.

Your not Gordon Brown so you have no idea what you are talking about.

He saved the world you have not.

Share this post


Link to post
Share on other sites
As to the OP - it's been this way for at least a hundred years, all thyat has happened is that we are seeing the man behind the curtain for a change.

In the US at least they have Ron Paul trying to tear down the curtain to see who's there behind it.

Seems that in the UK we have to wait for the curtain to become so moth-eaten that it disintegrates autonomously. :(

Share this post


Link to post
Share on other sites

He seems to be saying the government has stuffed us. They have propped up house prices and we can either choose a life of debt burden or be priced out forever - and pay high taxes for the privilege.

Have to say I feared it would turn out thus.

I'm off out this country.

Edited by waitingscot

Share this post


Link to post
Share on other sites

When my daughter was 19 she got a credit card and went on a spree. She bought stuff that she didn't really need and couldn't afford. She was distraught when she started getting threatening letters from collection agencies and I hated to see her worried so I gave her a lecture and bailed her out.

About 4 months later she was back in the same position, I gave her a bigger lecture and bailed her out again.

To cut the story short - I bailed her out 3 times but on the 4th time I said no!

She was very unhappy with me, I was in a position to help her but I wouldn't. Please Dad, I wont do it again. No! I said.

Finally she paid it off but went through considerable anguish. I should never have bailed her out the second time, let alone the third.

That was 10 years ago, she's OK with her money now but she did have to suffer to learn her lesson.

I think this little micro example applies to all walks of life and will eventually apply to the banking system. If they don't suffer now they will finally suffer much more.

Share this post


Link to post
Share on other sites
I'm off out this country.

I'm in London today. Drove past a house near Chelsea embankment.

Aston Martin Vanquish registration plate "2 BE"

Mercedes S Class registration plate "NOT 2B"

Obviously a reference to Hamlet and that speech about suicide. Well, you have to wonder if Potassium Cyanide is preferential to what's going on in this country.

But what's this? On the radio they are playing a Beyonce tribute. Everything must be alright then!

I want to live! And I want to live in Britain!! Hooray!!!

Edited by Dave Spart

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   295 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.