Jump to content
House Price Crash Forum
Sign in to follow this  
pandora's box

Simple Solution To The Banking Crisis

Recommended Posts

Such mistrust between the banks – "we're lying, so they must be lying" – gums up the wheels of finance and starves even credit-worthy firms of the credit needed to invest and create jobs. The way to break this deadlock isn't to expand narrower measures of money via QE, but to end inter-bank torpor by forcing "full disclosure" of losses – as this column has argued for several years.

The numbers will be ghastly, of course, forcing the banking sector to restructure. Some big names will fail, their depositors absorbed by more solvent institutions. But, as history shows, this process can be managed and really is the only way that capitalism can work.

Liam Halligan


Share this post

Link to post
Share on other sites

Halligan serves an ace in his final paragraph:

Modern capitalism, at its core, relies on the public's trust of fiat money and the sanctity of contract. QE is seriously undermining both those cardinal concepts. We're not supposed to call QE "money printing" because money printing is the last refuge of declining economic empires and banana republics. It also amounts to state-sponsored theft. And against that, yes Professor Congdon, I declare an "implicit prejudice".

Game, set and match.

Share this post

Link to post
Share on other sites

Duh the solution is to declare a despot state for 48 hours without notice. Close all the ports arrest bankers put them against the wall and shoot them. Confiscate their estates. Then go back to business as usual.

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.

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.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 285 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.