Ducati Sporting Club UK > General > Idle Chat > Seriously uncomfortable questions!!!

[Paul James]

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