dothemaths Posted September 29, 2011 Share Posted September 29, 2011 Bank lending should be controlled Lord Turner states the obvious .... Quote Link to comment Share on other sites More sharing options...
cashinmattress Posted September 29, 2011 Share Posted September 29, 2011 How about "stop spending"? And "you can't possible afford that"! Or "save your money"? Maybe, "don't be so fvcking stupid"? Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted September 29, 2011 Share Posted September 29, 2011 Even when implemented it will only last as long as the next greatest maths formula which shows the current rules are obsolete. Quote Link to comment Share on other sites More sharing options...
Authoritarian Posted September 29, 2011 Share Posted September 29, 2011 (edited) Perhaps Lord Turner is losing sight of the goal. House prices need to be controlled, once a fiscal regime can be implemented that ensures they stay low and stable lending will follow suit. Edited September 29, 2011 by Authoritarian Quote Link to comment Share on other sites More sharing options...
plummet expert Posted September 29, 2011 Share Posted September 29, 2011 Bank lending should be controlled Lord Turner states the obvious .... Ifyou read it, you'll find a complex mixture of ideas. But, lack of regulation in the mortgage market has been a major cause of Britains unbalanced economy and severely detrimental to competitiveness over several decades. Quote Link to comment Share on other sites More sharing options...
R K Posted September 29, 2011 Share Posted September 29, 2011 He's rather good at talking.......... Quote Link to comment Share on other sites More sharing options...
LJAR Posted September 29, 2011 Share Posted September 29, 2011 "optimal" amount of credit "right" parts of the economy who decides which these are, and why will forcing money into small businesses not just cause a small business bubble like th dotcom bubble? Don't put a city boy in charge of the FSA, dont put anyone "in charge" of the markets. LET THEM FAIL JUST LIKE ANYONE ELSE. Quote Link to comment Share on other sites More sharing options...
Dorkins Posted September 29, 2011 Share Posted September 29, 2011 The traditional way to limit lending was interest rates. If banks wanted to lend a lot, they had to raise a lot of capital, and that meant offering depositors or other investors attractive rates. At some point, they would hit a balance. Now we have the BoE doing everything it can to prevent credit from finding its proper price, but rather than stopping that the politicians would prefer to knock the sea wall down and legislate against flooding. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted September 30, 2011 Share Posted September 30, 2011 "optimal" amount of credit "right" parts of the economy who decides which these are, and why will forcing money into small businesses not just cause a small business bubble like th dotcom bubble? Gordon Brown? OK, that was my immediate reaction to that question, and it's true that government actions do a lot to create perverse incentives that put the individual's interests in direct opposition to the common good. Thus property speculation became a Prisoners Dilemma, where the individual's interest was to outguess other individuals to the detriment of society as a whole. Quote Link to comment Share on other sites More sharing options...
LJAR Posted September 30, 2011 Share Posted September 30, 2011 Gordon Brown? OK, that was my immediate reaction to that question, and it's true that government actions do a lot to create perverse incentives that put the individual's interests in direct opposition to the common good. Thus property speculation became a Prisoners Dilemma, where the individual's interest was to outguess other individuals to the detriment of society as a whole. right, but the same can be said of investing in gold, or government bonds which are both well into bubble territory now. we made it society's problem by promising to tax ordinary people to pay the banks for their mistakes. they should have been allowed to go bankrupt first - let the shareholders and bondholders take the hit and then broken up and sold off. Quote Link to comment Share on other sites More sharing options...
aa3 Posted September 30, 2011 Share Posted September 30, 2011 In a democracy the people will just vote themselves more and more until the country goes under. If you don't believe me just imagine if to balance the budget we had to cut back on pensions and health spending. It could never happen. Thats why when I look around the world, nearly every democracy is broke, and begging countries like China and Saudi Arabia for cash to keep going for a few more months. Quote Link to comment Share on other sites More sharing options...
dothemaths Posted September 30, 2011 Author Share Posted September 30, 2011 In a democracy the people will just vote themselves more and more until the country goes under. If you don't believe me just imagine if to balance the budget we had to cut back on pensions and health spending. It could never happen. Democracy requires an honest press and honest politicians who must tell the population hard truths. Now for the last 2-3 decades, there has been a rise in corruption funded mainly by big finance of the press/politicians which has got us to where we are now. Quote Link to comment Share on other sites More sharing options...
Dorkins Posted September 30, 2011 Share Posted September 30, 2011 In a democracy the people will just vote themselves more and more until the country goes under. If you don't believe me just imagine if to balance the budget we had to cut back on pensions and health spending. It could never happen. Thats why when I look around the world, nearly every democracy is broke, and begging countries like China and Saudi Arabia for cash to keep going for a few more months. Democracies would have no choice but to balance the budget if nobody could or would lend them any more money. Unfortunately central banks will always lend governments money under a fiat currency regime. The problem is fiat, not democracy. Quote Link to comment Share on other sites More sharing options...
nixy Posted September 30, 2011 Share Posted September 30, 2011 Democracies would have no choice but to balance the budget if nobody could or would lend them any more money. Unfortunately central banks will always lend governments money under a fiat currency regime. The problem is fiat, not democracy. Absolutely 100% guaranteed correct. mind you, I guess, most who blindly support 'democracy' don't even know what fiat money is / means....... ....... and the banko political types want to keep it that way. Quote Link to comment Share on other sites More sharing options...
evetsm Posted September 30, 2011 Share Posted September 30, 2011 Bank lending should be controlled Lord Turner states the obvious .... Quote Link to comment Share on other sites More sharing options...
Traktion Posted September 30, 2011 Share Posted September 30, 2011 "optimal" amount of credit "right" parts of the economy who decides which these are, and why will forcing money into small businesses not just cause a small business bubble like th dotcom bubble? Don't put a city boy in charge of the FSA, dont put anyone "in charge" of the markets. LET THEM FAIL JUST LIKE ANYONE ELSE. Yup, it's nonsense. The optimal amount of credit should be decided by depositors. If they don't trust the bank, they can remove their money and credit availability will fall. It's a simple lesson: Money in the hand is not the same as promises of money in the bank. It's a simple lesson and everyone should learn it, digest it and act upon it. No more regulation is required. Quote Link to comment Share on other sites More sharing options...
Traktion Posted September 30, 2011 Share Posted September 30, 2011 Democracies would have no choice but to balance the budget if nobody could or would lend them any more money. Unfortunately central banks will always lend governments money under a fiat currency regime. The problem is fiat, not democracy. Without inflation, the value of state spending would be pulled into such stark focus, that people would realise they would be better off without the state at all. Without the governments getting their mitts on fresh money and credit to spend, they wouldn't get the advantage of being able to spend the money before the inflation becomes obvious. Fiat gains its value from threats of violence. It is immoral and not needed either. Quote Link to comment Share on other sites More sharing options...
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