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Realistbear

Vince Wants To Punish Banks If They Don't Create More Debt

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8014692/Vince-Cable-banks-heading-for-train-crash-if-they-pay-bonuses-without-lending.html

Vince Cable: banks heading for 'train crash' if they pay bonuses without lending
Vince Cable, the Business Secretary, has warned banks they could be heading for a “train crash” if they award large bonuses while small businesses struggle to get credit.
By Angela "Angie" Monaghan
Published: 6:23AM BST 21 Sep 2010
233,678 Comments
Vince Cable, Business Secretary, said banks would be subjected to more financial penalties unless they increase levels of
lending
debt
Threatening an “enormous kick-back” from politicians who would go on the “war path”, he said banks would be subjected to more financial penalties unless they increase levels of
lending
debt.
His comments coincided with fresh data from the Bank of England that showed lending to businesses fell for a fifth consecutive month in July, with small companies at the heart of the struggle to access credit.

Vince may not see that we are at a dangerous point in the economic cycle. The downturn has been stalled but it must be allowed to play itself out or it will only be worse in the long term. This is possibly the worst time to be adding debt.

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He's a banking stooge - if he were serious, he'd get their balance sheets investigated for fraud and creative accounting. That would prevent bonuses being paid out unless they were actually deserved

Instead, like all the banker bumlickers before him, he threatens to scweam and scweam and scweam until he’ll sick!

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It's crocodile tears.

As mentioned on another thread, during the bailouts we could have stipulated whatever we wanted. I appreciate there has been a change of government but this government has been singing from the same hymn sheet.

And indeed, with such huge share ownerships the government can still dictate things e.g. linking bonuses to lending levels etc.

I just don't understand this obsession with debt though. Surely businesses de-leveraging in an orderly way is a good thing?

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Vince may not see that we are at a dangerous point in the economic cycle. The downturn has been stalled but it must be allowed to play itself out or it will only be worse in the long term. This is possibly the worst time to be adding debt.

But debt is wealth ;) The more debt we have the richer we all shall be :rolleyes:

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Maybe he should ask the banks why they don't want to lend. They probably have lots of graphs and things they could show him. The guy's got a PhD in Economics, he should really understand why banks don't want to lend money they won't be paid back.

(Or maybe it's all for the cameras, and he knows the real score.)

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Vince Cable has told the BBC that ministers are considering "potentially quite tough sanctions" against banks which give out large bonuses."

Three qualifiying rounds to get through before tough sanctions emerge by the sound of that.

I thought Vince was gonna be good :(

Edited by noodle doodle

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Maybe he should ask the banks why they don't want to lend. They probably have lots of graphs and things they could show him. The guy's got a PhD in Economics, he should really understand why banks don't want to lend money they won't be paid back.

(Or maybe it's all for the cameras, and he knows the real score.)

do you have a PhD in economics out of interest?

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do you have a PhD in economics out of interest?

I do have a PhD, molecular biology rather than economics though. Spent a year studying economics in my undergraduate days before moving to a more useful science.

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I do have a PhD, molecular biology rather than economics though. Spent a year studying economics in my undergraduate days before moving to a more useful science.

Or even, a real science. Economics is more art than science.

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Or even, a real science. Economics is more art than science.

Economics is a science, but I would put it at about the same level of development as biology was in the 18th century. Pre-DNA, pre-Darwin, lots of observations but no real explanations as to why things work the way they do. And like 18th century medicine, 21st century economic policy is as likely to kill as cure.

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I was naive enough to think that Vinnie "Jones" Cable was serious about sorting out the bankster cabal, but no, he's turning out to be even more of an apologist than the clowns before May 6.:blink:

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Economics is a science, but I would put it at about the same level of development as biology was in the 18th century. Pre-DNA, pre-Darwin, lots of observations but no real explanations as to why things work the way they do. And like 18th century medicine, 21st century economic policy is as likely to kill as cure.

That's an optimistic assessment.

I think it is likely to go the way of alchemy and astrology, and the debates between monetarists and Keynesians will be viewed with the same relevance as the debates between Arianism and whatever the rest of the Christians were called at the Council of Nicaea.

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8014692/Vince-Cable-banks-heading-for-train-crash-if-they-pay-bonuses-without-lending.html

Vince Cable: banks heading for 'train crash' if they pay bonuses without lending
Vince Cable, the Business Secretary, has warned banks they could be heading for a “train crash” if they award large bonuses while small businesses struggle to get credit.
By Angela "Angie" Monaghan
Published: 6:23AM BST 21 Sep 2010
233,678 Comments
Vince Cable, Business Secretary, said banks would be subjected to more financial penalties unless they increase levels of
lending
debt
Threatening an “enormous kick-back” from politicians who would go on the “war path”, he said banks would be subjected to more financial penalties unless they increase levels of
lending
debt.
His comments coincided with fresh data from the Bank of England that showed lending to businesses fell for a fifth consecutive month in July, with small companies at the heart of the struggle to access credit.

Vince may not see that we are at a dangerous point in the economic cycle. The downturn has been stalled but it must be allowed to play itself out or it will only be worse in the long term. This is possibly the worst time to be adding debt.

Have you noticed how most people you held up over the years as sensible and experts we should listen to have turned out to be nothing but shysters?

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Have you noticed how most people you held up over the years as sensible and experts we should listen to have turned out to be nothing but shysters?

Owning both sides of a fantasy debate is such a good trick, isn't it?

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"Cable lectured for a time at the University of Glasgow and at the London Skool of Economics."

There you go - Cable the "ORANGE" man is right 'in there' with the worst of them!

Making the right noises - but 'making it up as he goes along'

(like all propa well paid City Economists are!)

He's already been noticed & caught out for "flip-flopping"

saying one thing, then saying the opposite - Orwellian!

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That's an optimistic assessment.

I think it is likely to go the way of alchemy and astrology, and the debates between monetarists and Keynesians will be viewed with the same relevance as the debates between Arianism and whatever the rest of the Christians were called at the Council of Nicaea.

Yep. Mandelbrot nailed it. Markets are non-linear, and they contain hidden feedback loops. Ever tried to measure the emotion "panic" to use in a dynamic analysis? They're chaotic in the mathematical sense. Might as well listen to the oracle at Delphi for good stock market advice, or read the tea leaves.

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It's the bonus thing that scares them- their position on the austerity meme will look utterly ridiculous if the banksters are visible in the background making off with large a sacks of loot.

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I was naive enough to think that Vinnie "Jones" Cable was serious about sorting out the bankster cabal, but no, he's turning out to be even more of an apologist than the clowns before May 6.:blink:

Now that he is in government the lads* have probably told him the way it is. As someone once said: all power corrupts and absolute power corrupts absolutely.

*Grey suits

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Have you noticed how most people you held up over the years as sensible and experts we should listen to have turned out to be nothing but shysters?

Vince in power is not the same as Vince out of power. I think it was Nietsche who said power corrupts and absolute power corrupts absolutely. Now that Vince is in power he has no doubt had meetings with the lads (grey suits) who have told him the way things work and how much better it will be for him if he tows the line.

The banksters rule this country now and they are far too big to fail or to listen to whipper snappers like Vincente de Cable.

Edited by Realistbear

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I was naive enough to think that Vinnie "Jones" Cable was serious about sorting out the bankster cabal, but no, he's turning out to be even more of an apologist than the clowns before May 6.:blink:

All very disappointing.

He is just another politician after all.

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  • 191 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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