Seriously uncomfortable questions!!! I guess quite a few of you have been following the fortunes of various global economies and asking how our answers here in the UK shape up in comparison with other countries. I know I have as I'm seriously concerned about the effects this depression is going to have not just on us now but on the generations to come who have the backwash of this tragedy to pay off. So a few questions that it would be interesting to hear your comments on: Why, given that people in the street were expressing concerns over the ludicrous extension of all forms of credit from years back didn't the government foresee this inevitable crash? If as they keep suggesting there was no way that they could have forseen it doesn't it present the frightening prospect that the government is totally economically inept? Why were the banks allowed to go unregulated for so long? Will it not now be essential to regulate how they function in the future? Why were £billions thrown recklessly at the banks, particularly RBS which we now own around 70% of without any insistence on executive powers being given? Is it right given how RBS has been funded that its employees are being given £billions in bonuses? Admitedly there are some contractual considerations but in these unprecedented circumstances, where regulation can be relaxed to allow the tragic merger of 2 banks against current legislation can't/shouldn't those contracts be revised? How much further do you believe the banks will need to be baled out using our money? Is the horrendous credit situation entirely the fault of the banks for encouraging the lending or does blame in part fall on those who took on the credit knowing in all honesty that they could never pay it back? How will rapidly declining numbers of people in work be able to fund the welfare state to cater for those not working? Without increasing taxes is this possible? If increasing taxes on the higher earners does that encourage them to be innovative and earn more just to pay it all back in tax? Is the concept of established businesses relying heavilly on credit to be able to function fundamentally flawed? Is it fair that those who have lived responsibly and invested hard earned savings are getting such poor levels of interest having played no part in the financial meltdown? Does anyone believe that the £50,000 government guarantee on your bank deposit is likely to be viable should a bank go pop? How do we justify forcing the banks to start lending again when irresponsible lending/borrowing has been the root cause of our situation? Doesn't it potentially just restart the same cycle? Do you believe that this will be the biggest financial depression in history? How can we encourage people, particularly the younger generations, to return to a savings ethos rather than a massively credit based one? Isn't it imperative that this happens? What will the true unemployment figure be at the trough of this depression? Is 3 million a conservative estimate? Should we include in the figures people who are in further education on courses that will never fit them for wark afterwards? Is it right in the current employment crisis that a contract for new railway equipment went to a Japanese company rather than being used to protect jobs and cashflow in the UK by using a UK contractor? Just a few of many, so what do you think? What other issues concern you in these worrying times? Paul |
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Will be for me, spent all mine on the 848 :lol: |
Im ok I have mine in HBOS/Lloyds surely Brown wont let them go bust now !! |
Interesting points Paul. In one word that will answer most points GREED One thing my father taught me was, it you cannot afford it you dont have it. I have no debts and what I have is mine. Its all so easy to to have what you can afford Buy now pay later get in as much debt as you can a Live today Die Tommorrow attitude. I hope to think that the new youth of today will take heed of events that have unfolded and like the drink driver scoured upon for there stupidity and selfish behaviour. What we need is a Goverment with a bit of backbone and start to get to grips with the true state of this country. Sure we should have British jobs for British workers but many British workers are working in the EU now ? Does it really pay to have money and savings in this country it seems the less you have the more you get. Nationalize the banks and the railways. Ban the word profit and put shareholders down the mines and see them earn a living, not make it on the sweat of other. Dont pay Dole money out unless its earned and stop paying Scroungers from outside Britain or only those with a NI number and have at least contributed some thing. As you say its going to get worse before it gets better and only the MT ooops sorry Goverment with a big stick will get us out of it,but then all we will hear is the do gooders and Human Rights brigade bleating You can't win Ill just get back under me rock 4D |
As Fordie says. If you can't afford it, don't buy. The good thing is that you will not be any sadder without it. |
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I Asked my bank manager this very question last week, Like most small Companies We have this thing called Profit, We put it into a bank to- A. Buy new stock to make even more Profit B, Save it for a period when times are a little more difficult. C, Pay ourselves a wage. Apparently the companies that rely on Credit to Operate have this the wrong way around, and the Likes Of RBS are quite happy to let them do it.... I'm Glad Im with Barclays. |
private equity is far worse |
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Totally. Whilst much of this crisis is global, much of GB's policies have led to the problems being worsened for the UK. Quote:
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To answer this then you need to remember how banks make their money. They earn interest from LENDING money to borrowers, charged as interest. To get the money to lend out, they have to get investors to lend it to them. The only way they can do that is by paying them interest, which they do at a lower rate than they lend it out. The difference is the profit. Ultimately they don't really care what the interest rate is as long as the difference between the lending and borrowing rates remain the same. They still make the same amount of profit if the gap remains at 2% if the rates go up or down. And that's banking in it's simplest form. The problems for the banks have not come from the high street activities of borrowing to lend, but form the greedy investment parts of the banks to earn a fast buck. Quote:
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I try hard not to just blindly accept what is put out on the news and in the press. I think after all this is over and the post mortem is carried out, it will not be as cut and dried as it appears at the moment. I really do hope that all the facts come out and that those responsible for this mess are held to account, although I somehow doubt it. |
In short, no one wants to ***** a bubble! be they politicians, bankers, brokers, financial pundits et al, one pricked however, the media have done a fine job in re-inforcing the financial and mental depression of the nation! |
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oh for the days of quill, chalk and slate board eh pete ;) :lol: |
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