Banking Industry

[Grinding One]

Well here in the States they have done it ....voted the Tax for the banks in the Senate.Now back to the House for a revote.Hold your pants on its not a done deal yet.
I have seen the World Panic in the Banking industry because of this...these people are way to close to our problem.I do not know how it happened but If I were them I would surely get my money back into my own bank.
Well thats why everything went down hill in the basket...it was a foreign investment problem,the revenue stopped coming in when the companys laid off the workers,then without jobs they could not pay their house payments.All of the bundle securities that were good (Home Loans)started to fail,and investors wanted their money back.Understandable.What I do not understand is who goes to jail for making a mess out of this....and why do I have to pay for it....just wrong.

 

[virtu]

Self regulation of markets does not work, if banks are not let to go broke. Bankers can't but win, if they would loose, taxpayers cover the loss. What sort of reckless behaviour that fuels.

Something I can't comprehend.

 

[lurker]

That mega-rich American woman ( a few years ago) spoke volumes when she said only little people pay taxes.

Guess who will come out of all this "quids in" ???

 

[christoph clark]

Hold your pants on

We say trousers :lol: :lol: :lol:

but hold your pants does sound good in this situation :lol: :lol: :lol:

 

[Grinding One]

Guess I could have said Jeans since most people over here wear them.

 

[Tusses]

what I dont get ... the banks get bailed out if they have borrowed too much or made bad business decisions , but 'we' dont :?

I owe an awfull lot, and have for years (property) - I have used the system, but it has now came and bit my ar$e ! I am now getting well and truely screwed by increasing interest rates ! :shock: I knew what I was doing was risky all along. I cant see (or expect) Gordon sending me a cheque to tide me over :lol:

oh well - easy come , easy go :?

I wont be any worse off if I go bust than I was before I started

 

[Jake]

It's become a systemic problem, such that even the good banks won't lend money to each other or to anyone. Without credit and bank lending, modern capitalism falls over and we're all in trouble - the global economy goes down the pan, badly. As in depression, not recession.

You going bust is unpleasant for you, but even if there are millions of you, it isn't a big a threat to the functioning of the economy as the banking system ceasing to exist in a meaningful way for any substantial period.

The US bail-out is something like a a quarter of the cost of the Iraq war - and that's the immediate cost, ignoring the fact that most of the stuff that is taken off the banks' books will eventually be sold or mature and is likely to repay a substantial portion of the bail-out, if not turn a profit for the tax-payer.

 

[Grinding One]

But in the mean time Iraq is holding onto their money while we pay for their war torn country...train their people build their country...oh well the American way.Take out the guy killing off of his people bomb him and his Army then replace what we blew up at our cost.We got to get out of the habit of saving other people.

 

[RogerS]

It's become a systemic problem, such that even the good banks won't lend money to each other or to anyone. Without credit and bank lending, modern capitalism falls over and we're all in trouble - the global economy goes down the pan, badly. As in depression, not recession.

You going bust is unpleasant for you, but even if there are millions of you, it isn't a big a threat to the functioning of the economy as the banking system ceasing to exist in a meaningful way for any substantial period.

The US bail-out is something like a a quarter of the cost of the Iraq war - and that's the immediate cost, ignoring the fact that most of the stuff that is taken off the banks' books will eventually be sold or mature and is likely to repay a substantial portion of the bail-out, if not turn a profit for the tax-payer.

As ever, Jake, you have hit the nail on the head. Most people (including politicians) just don't get it. Even with the central banks giving out loads of money to try and increase liquidity in the inter-banking loan system, there has been little effect and there won't be until banks restore confidence in each other.

Bleating about 'fat-cats' and 'you and me paying' are all very well but about as pointless as a rounded-bevel on a chisel. Those politicians in the US who are blocking the bail-out are, like politicians the world over, only interested in saving their own a**es at the impending elections. For once, and I never thought that I'd ever say this, George W is right :?

 

[big soft moose]

We got to get out of the habit of saving other people.

particularly when they havent asked you to "save them" - while it is true that the iraqi people werent having that great a time under sadam most of them didnt want to be occupied by nato either.

the liberation of kuwait in 1991 was about saving people - gulf war 2 is a war of conquest centred largely on the desire for cheap oil.

Still i think the discussion of politics is verbotten on here so i wont go further into that.

 

[Grinding One]

OK they passed the bill lets all go get loans to buy more tools

 

[Tusses]

OK they passed the bill lets all go get loans to buy more tools

yeah .... lets hope it rubs over here too !

 

[Rich]

I am still adamant that one should not live beyond ones means, that applies to me and should also apply to the government, at the end of the day we are one big household and should budget accordingly, once again we return to the Mr Macawber situation.

Regards,

Rich.

 

[Tusses]

I am still adamant that one should not live beyond ones means, that applies to me and should also apply to the government, at the end of the day we are one big household and should budget accordingly, once again we return to the Mr Macawber situation.

Regards,

Rich.

ther is that - and I might 'now' agree but also, there is the 'go with the flow' attitude that is (to me) acceptable too.

if the whole world is saying 'borrow loads and take risks' then why not? - as long as you realise you might fall flat on your face

 

[Rich]

That's fair enough tusses, but WHO bails you out when you fall flat on your face? yes mate, ME.

Rich.

 

[Losos]

I am still adamant that one should not live beyond ones means, that applies to me and should also apply to the government, at the end of the day we are one big household and should budget accordingly, once again we return to the Mr Macawber situation.

Regards,

Rich.

Here, here, Rich - I do get very annoyed at seeing how these top investment bankers have messed up and will be even more annoyed if it transpires that they are still going to pick up their imoraly high bonuses.

The only difference I can discern between the 1929 WallStr. crash and now is that back in 1929 it was the government who made all the wrong decisions, whereas now it is those wallys on Wall Str.

As Tony said, for once Bush and co. are trying to sort it, but why did they let it get to this situation in the first place :?: (You'd have thought people would have learned something in the 69 years since the great depression.)

I still remember my father telling me about life in Cardiff in the early 30's it was not nice, he often went days with no food and people did actually starve. People can't believe that now, but we've come very very close to a repeat these last few weeks.

Let us hope these wan......er sorry bankers will be better controlled in future and some stability and micawberism will return to our financial systems.

 

[Rich]

Good evening Losos, at the risk of being labelled a "little Englander" I would go further, in my house, if there is something we want and we can't afford it, we save up for it and pay with cash when we can afford it, we don't want any medals for that, it's common sense and practical.
What I would advocate, is, this government should stop spending money on things that we DO NOT need, ie, olympics, EU, charitable donations to countries that do not alter their ways, keep the building of ships, aircraft and automobiles in THIS country.
This obviously sounds like protectionism, IT IS! does anyone think that the rest of the world is'nt doing the same, of course they are, we are the only country to play by the rules, and look where it has got us
we now depend on the rest of the world for engineering, technology, fuel,
etc etc, this makes us beholden to other countries in a political manner and that is NOT good.

Rich.

 

[Digit]

As an adjunct to that apparently we donate £30,000,000 annually to the People's Republic of China as aid!
What was it they spent on their Olympics?

Roy.

 

[Grinding One]

As an adjunct to that apparently we donate £30,000,000 annually to the People's Republic of China as aid!
What was it they spent on their Olympics?

Roy.

Hey there if nobody gives, somebody a hand up..then we all take a hit...How are they going to pull themselves up??The banker makes his money loaning out your money you gave him to make you some more money...whew...now here comes the rub,the government slacked off of the regulations and let the economy float the loans they knew they wouldn`t be realalistic..Those are the guys that need to go to Jail....Wait a moment I have to house them and feed them while they are in jail....ahhh heck with it...throw them out of the country,anybody want some shady banker types??

 

[StevieB]

What is it like up there on the moral high ground Rich? Got a good view? Unless you also saved for an awfully long time I suspect you also have a mortgage? What about your car? Always have enough put buy in case of breakdown or write off in an accident? While it is nice to think we are all fiscally prudent and save for the things we want in todays world credit is a fact of life, for both individuals, business and governments. Borrowing against future earnings is and always has been performed. Its when borowing exceeds capacity to pay back on future earnings that a problem arises. Naturally the scale is different for individuals and governments and rules for the two are not the same, but as we are seeing with the current crisis, its the drying up of lending facilities that is causing the problem rather than the fact that lending facilities exist!

Steve