Jump to content
House Price Crash Forum
Sign in to follow this  
Olebrum

Steve Keen - Why Credit Money Fails

Recommended Posts

Crikey! Talk about over engineering a solution to a simple problem.

His analogy about debt pushers is fundamentally flawed because the govt. licences the banksters.

Thus the govt. controls DIRECTLY 1/2 dozen banks and can very very simply DIRECT them as to which assets they are allowed to hold. It really is simple stuff.

Where it went horribly wrong was that this regulation failed. Actually it didn't so much fail as was wilfully, purposefully and intentionally rigged by govt. to ensure asset prices (in this case houses mainly but also personal lending) rocketed. Why? Well we've covered the 'why' in detail many times.

Can it be THAT difficult to regulate 1/2 dozen banks to whom you give licences in the first place? OF COURSE IT ISN'T!!

All it requires is an honest government and 1/2 dozen HONEST bank boards.

Sadly we had neither.

Replacing this form of failed regulation with a new form of regulation isn't a solution at all.

All we need do is regulate PROPERLY. Dead simple. If you don't want Adam Applegarth selling 120% mortgages you take away his licence - That's it, job done. If you want to restrict remortgaging for paying for German cars and foreign holidays - you instruct the banksters not to do this.

Simple, easy, works. Unless you have corrupt govt. and corrupt banks, but no system prevents fraud - You just have to draw lines and prosecute criminals. We're still at the point where not a single person has been prosecuted. That's the problem.

Share this post


Link to post
Share on other sites

Where it went horribly wrong was that this regulation failed. Actually it didn't so much fail as was wilfully, purposefully and intentionally rigged by govt. to ensure asset prices (in this case houses mainly but also personal lending) rocketed. Why? Well we've covered the 'why' in detail many times.

...

All we need do is regulate PROPERLY. Dead simple. If you don't want Adam Applegarth selling 120% mortgages you take away his licence - That's it, job done. If you want to restrict remortgaging for paying for German cars and foreign holidays - you instruct the banksters not to do this.

Hugh Hendry on 'The Bottom Line' with Evan Davies commented last week 'what we need is effective regulation not more regulation of the finance industry. There are no real penalities is it any wonder that the system is delinquent.'

(Last bit was my paraphrase).

Share this post


Link to post
Share on other sites

Crikey! Talk about over engineering a solution to a simple problem.

His analogy about debt pushers is fundamentally flawed because the govt. licences the banksters.

Thus the govt. controls DIRECTLY 1/2 dozen banks and can very very simply DIRECT them as to which assets they are allowed to hold. It really is simple stuff.

Where it went horribly wrong was that this regulation failed. Actually it didn't so much fail as was wilfully, purposefully and intentionally rigged by govt. to ensure asset prices (in this case houses mainly but also personal lending) rocketed. Why? Well we've covered the 'why' in detail many times.

Can it be THAT difficult to regulate 1/2 dozen banks to whom you give licences in the first place? OF COURSE IT ISN'T!!

All it requires is an honest government and 1/2 dozen HONEST bank boards.

Sadly we had neither.

Replacing this form of failed regulation with a new form of regulation isn't a solution at all.

All we need do is regulate PROPERLY. Dead simple. If you don't want Adam Applegarth selling 120% mortgages you take away his licence - That's it, job done. If you want to restrict remortgaging for paying for German cars and foreign holidays - you instruct the banksters not to do this.

Simple, easy, works. Unless you have corrupt govt. and corrupt banks, but no system prevents fraud - You just have to draw lines and prosecute criminals. We're still at the point where not a single person has been prosecuted. That's the problem.

Indeed..a bit of enforcement works wonders....someone remind me A: who that antipodian Cricket supporter was that got nicked for banking scam..and B: where is he now and what Court is he appearing at?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 259 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%



×
×
  • Create New...

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.