Jump to content
House Price Crash Forum

Can The Real Reason For The £trillion Bank Bail Out Be...


PopGun
 Share

Recommended Posts

Think about it.

With a few exceptions (not privy to million pound bonuses) the South East is a one trick economy. Without the multinational/national finance companies and banking, London would vastly become a very desolate and economically deprived area. Just think if the International banks up sticks and moved their financial centre elsewhere?! What would be left??

I can't help but draw parallels to the Northern/Welsh and Midland towns (thanks to the Unions and then Thatcher) that were sacrificed its many industries in order to control southern inflation and wealth. If the same fate was to bestow London, it would be even more cataclysmic. Hence why in our master's eyes the banking sector must be saved.

So is the real reason why every household in Britain now has an extra average tax burden of £75,000, is to save London from the scrap heap? And if so, will the magic beans work?

Link to comment
Share on other sites

Think about it.

With a few exceptions (not privy to million pound bonuses) the South East is a one trick economy. Without the multinational/national finance companies and banking, London would vastly become a very desolate and economically deprived area. Just think if the International banks up sticks and moved their financial centre elsewhere?! What would be left??

I can't help but draw parallels to the Northern/Welsh and Midland towns (thanks to the Unions and then Thatcher) that were sacrificed its many industries in order to control southern inflation and wealth. If the same fate was to bestow London, it would be even more cataclysmic. Hence why in our master's eyes the banking sector must be saved.

So is the real reason why every household in Britain now has an extra average tax burden of £75,000, is to save London from the scrap heap? And if so, will the magic beans work?

well, thats what i thought, pay money, save the banks.

what annoys me is the bonuses. they say they have earned the bonuses, but, without the bail outs there would have been no banks to pay the bonuses. they should be banned in bailed banks, whether they have received cash, haircuts on their assets in exchange for bonds or whatever.

Link to comment
Share on other sites

The reason is so that Brown and Darling can force the banks to lend 100% mortgages at 5x salary so they hope house prices start to rise again and they get re elected.

you can force a bank to the lending table, but you cant make the borrowers sign.

Link to comment
Share on other sites

The bank bail outs were months ago, these bank assets are getting worse by the month, unless property stops falling in the U.S.A and there is no sign yet of that happening, giving more money is like filling a bucket with a hole in it. They should have started new banks and let the failed ones go bankrupt, just guarantee depositors money. and that's all.

Link to comment
Share on other sites

I'm not sure the end of the City would spell the end of London. It would still be the seat of government, universities/learning and tourism - similar to Rome if you think about it, which only really has government, tourism and the church keeping it going.

And, unless something's changed radically in the last few years, it's also Britain's heaviest concentration of *drumroll* manufacturing.

If I had to buy a pie for everyone I know in the South East who works in finance, I'd only be down one pie, and that's only if I could spouses of the missus' workmates. Bad news for Pukka maybe, but there's a bit more going on down here than playing games with money.

Link to comment
Share on other sites

I'm not sure the end of the City would spell the end of London. It would still be the seat of government, universities/learning and tourism - similar to Rome if you think about it, which only really has government, tourism and the church keeping it going.

Don't underestimate this bit. Many of the best universities and teaching hospitals (hence medical schools and medical research) outside North America are in London.

Link to comment
Share on other sites

They should have started new banks and let the failed ones go bankrupt, just guarantee depositors money. and that's all.

Yeah, we would have done better with Bernie Madoff in charge- he wasn't so squeamish when it came to shafting the rich- watching the idiot speculators getting first place in the lifeboats is like watching re-runs of Titanic.

Link to comment
Share on other sites

Think about it.

With a few exceptions (not privy to million pound bonuses) the South East is a one trick economy. Without the multinational/national finance companies and banking, London would vastly become a very desolate and economically deprived area. Just think if the International banks up sticks and moved their financial centre elsewhere?! What would be left??

I can't help but draw parallels to the Northern/Welsh and Midland towns (thanks to the Unions and then Thatcher) that were sacrificed its many industries in order to control southern inflation and wealth. If the same fate was to bestow London, it would be even more cataclysmic. Hence why in our master's eyes the banking sector must be saved.

So is the real reason why every household in Britain now has an extra average tax burden of £75,000, is to save London from the scrap heap? And if so, will the magic beans work?

Amazing as it may seem to people born north of the Watford Gap not everyone in the South East lives in London or works for an international bank or for a financial institution.

http://www.gmb.org.uk/Templates/PressItems.asp?NodeID=96625

Edited by up2nogood
Link to comment
Share on other sites

Then the banks got serious with Risk, hoarded all OUR cash, and gave us and the government the finger.

They aren't hoarding - they have just about replaced the stuff they shouldn't have doled out in the first place

Amazing as it may seem to people born north of the Watford Gap not everyone in the South East lives in London or works for an international bank or for a financial institution.

http://www.gmb.org.uk/Templates/PressItems.asp?NodeID=96625

Funnily enough, around here we have HBOS, Norwich Union, Skipton Building Society, NatWest and RBS, all major local employers.

Don't hold your breath waiting for sensible comments on banks though, most on here seem to have bought he government line.

Edited by the end is nigh
Link to comment
Share on other sites

Amazing as it may seem to people born north of the Watford Gap not everyone in the South East lives in London or works for an international bank or for a financial institution.

http://www.gmb.org.uk/Templates/PressItems.asp?NodeID=96625

nope, the reason is to save the government and the banks, and hidding the real problems from the public.

Link to comment
Share on other sites

Think about it.

With a few exceptions (not privy to million pound bonuses) the South East is a one trick economy. Without the multinational/national finance companies and banking, London would vastly become a very desolate and economically deprived area. Just think if the International banks up sticks and moved their financial centre elsewhere?! What would be left??

What'd be left is what sustains London and attracts all those high-pay, high-margin industries now: it's the seat of government, including parliament and the high-value parts of the civil service, like Whitehall.

Move those, and somewhere else can have big clusters of high-pay, high-profit service industries.

Link to comment
Share on other sites

Just like with any city or country, if the laws/government don't stop the people they will create their own wealth.

London has good infrastructure, lots of people. You don't need more than that!

As for what London can do for cash. It could potentially increase capacity to teach foreign kids. Each foreign kid pays about £20k pa in fees to the university and then money on food/rent/bills/living/ect. You could increase capacity by 25k. That would bring in more than £600m per year and that spending would be spent again and again through the economy so your looking at perhaps close to £1.5B

and this is net from other countries. Lots of people in this country use London even if they don't live there. I'm sure most of you that don't live in London have visited it at some time.

Link to comment
Share on other sites

Just like with any city or country, if the laws/government don't stop the people they will create their own wealth.

London has good infrastructure, lots of people. You don't need more than that!

As for what London can do for cash. It could potentially increase capacity to teach foreign kids. Each foreign kid pays about £20k pa in fees to the university and then money on food/rent/bills/living/ect. You could increase capacity by 25k. That would bring in more than £600m per year and that spending would be spent again and again through the economy so your looking at perhaps close to £1.5B

and this is net from other countries. Lots of people in this country use London even if they don't live there. I'm sure most of you that don't live in London have visited it at some time.

with almost 8 million unemployed and the rest poverty debt stricken i think london would be the last place to send your posh children for education. more like the flight of capital out of london will happen once tshtf.

Link to comment
Share on other sites

The bank bailout is primarily to try and save 'the City' and hence the status of London as a major international finance centre, the international finance centre possibly. The reality is that Frankfurt has taken over from London in that regard. With its financial status diminished, London will be no more and no less important than Paris, the heart of another deceased empire.

Link to comment
Share on other sites

Just like with any city or country, if the laws/government don't stop the people they will create their own wealth.

London has good infrastructure, lots of people. You don't need more than that!

As for what London can do for cash. It could potentially increase capacity to teach foreign kids. Each foreign kid pays about £20k pa in fees to the university and then money on food/rent/bills/living/ect. You could increase capacity by 25k. That would bring in more than £600m per year and that spending would be spent again and again through the economy so your looking at perhaps close to £1.5B

and this is net from other countries. Lots of people in this country use London even if they don't live there. I'm sure most of you that don't live in London have visited it at some time.

strip clubs and MPs wives orgies.

Link to comment
Share on other sites

The bank bailout is primarily to try and save 'the City' and hence the status of London as a major international finance centre, the international finance centre possibly. The reality is that Frankfurt has taken over from London in that regard. With its financial status diminished, London will be no more and no less important than Paris, the heart of another deceased empire.

Only in that the ECB headquarters are in Frankfurt. The Fed is in Washington DC but nobody talks about Washington as a centre of finance.

Link to comment
Share on other sites

How can a couple of expensive Universities and a Pukha Pie factory sustain average house price levels of around £350,000without the financials?!

Much of the civil service is already being shipped elsewhere, as well as some media.

How long until Chelsea and Fulham become gated communities? Will they be worth gating once the foreign money moves on?

I doubt it.

Link to comment
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...
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • 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.