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He's throwing it about like loose change.
It is loose change to the government. No matter what happens Messrs Brown, Darling and all the other MPs will be happily retired on their gold plated, index linked, inflation proof pensions by the time the full enormity of what they have done or allowed to happen becomes clear to the majority of taxpayers.
Anyone prepared to offer an alternative solution?
Pretty much every country is now suffering the same problems, and are having to resort to the same solution.
The alternative would be to let the accounts go bust, which would have very dire consequences for everyone...
Vince Cable seems to have got it about right.
Over the last few days, I have been reading various articles about the loans that have already been or being made to banks and other finance houses. Yet it would still appear that some of these establishments and the people in charge still haven't got the message. There are still rewards and bonus's being paid for previous and now failures, and many a CEO is still riding around like a knight in shining armour.
Good for you alan14
they are all quick enough to criticise but very rarely do they come up with a better way of doing things.
I suppose it is par for the course for the government to be blamed for our situation. In fact, the origins of it go back to the Big Bang in the 80s.
The manner in which the credit crunch evolved was explained quite fully by Evan Davis in the first programme in his three-part "The City Uncovered" series, shown on BBC2 at 9.00 pm on last Wednesday. Anyone who missed it and is interested in the topic, and I regard it as a civic duty to be interested, can watch it on BBC iplayer. The second programme is entitled "Tricks with Risks" and will presumably deal with securatisation, the process of bundling good and bad risks with the aim of making the less risky (or saleable), in more detail.
Essentially it has been a problem of lack of regulation allowing ill-advised practices to beadopted, principally in the US but later infecting the UK. I suspect that those who blame the government are the same people who complain about a nanny state whenever regulation is imposed. It's also easy to blame the bankers, and they deserve much condemnation, but we must remember that those who took out loans irresponsibly also share responsibility. It takes two to tango.
I watched the same prog. and it was fascinating and it certainly uncovered a rather murky world.
However in fairness.........
1)The Government is not to blame for the current fiasco but their handling seems to show that they have not got a clue what to do when the chips are down but we expect them (as they are supposed to be more astute than us) to grasp leadership.....
2)People were not forced to take huge loans that they could never repay and they have to take some personal responsibility which is why I am totally against them having any help from me and you, The Taxpayer..
as an aside though...2a)the banks got up to some possibly criminal activities to securitise the loans that they realised were toxic and they have not been truthful about the state of their debt. They have been astonishingly rash about where they loaned OUR money.
3) Most of the financial gurus seemed to miss the pointers that were being talked about by some since 2004. We used to entrust these people for their supposedly superior knowledge; this was clearly mistaken.
4) The banks should never have been deregulated as it encouraged every spiv in the square mile to gamble recklessly with other people's money. It was not the current Government's decision to deregulate though
5) Short-selling should have been banned yonks ago. It makes the Stock Market more like Joe Corals rather than a Financial Inst.
6) Hedge Funds should have been banned as well. All they do is leverage prices of businesses to unrealistic levels by triple layering debts so that a few investors can fill their boots. The companies are then left totally rogered (Fat Face, Pizza Hut, Kwik Fit Halfords, Debenhams, Currys, Argos etc., etc).
7) George Soros and the whole board of RBS should be publicly flogged at Tom Long's Post as a warning to all and sundry.
This mess is complicated and the result of some countries economies being based on debt for at least 15 years....which is why it will get worse before getting better, why it is of Gordian knot proportions to unravel and why it will be here for 2 years at least with the debts incurred taking 2 or 3 generations to pay off.
alan14 it is ridculous to ask for another solution Leave a gap and say thought not rather than finishing the post and giving time for people to reply.
One way would be for the government to take over the banks completely that way they can git rid of all the ones that gave out dodgy loans and stop the Directors still paying themselves massive bonuses which they certainly do not deserve.
This way the government could start giving out loans which the banks have not done despite the first cash injection.
that all the political parties agree that there is no alternative to the present course of action, which is why you'll see them being careful to criticise the extent of the guarantees, or the timing, or the presentation - just about anything in fact, as long as it's not the concept.
Most developed nations are,or will be doing much the same as ours, because there's really no alternative - we must stimulate the banking industry into extending credit and lending money - principally in the mortgage market - or watch things get progressively worse.
We can all pontificate at length about what caused the crisis - most people can do it with the benefit of hindsight - but what counts now isn't a detailed post-mortem but action for the future. I'm tired of hearing the same old stuff about what we should have done, and what should have happened, etc., etc. What we do next is what matters most; we need to focus on digging ourselves out of the hole we're in, and then we can set about making sure that past mistakes aren't repeated.
Well you could ask why Brown and Darling kept rather quiet about the subject originally, although Darling did give a hint, some time back, at "the worse economic crisis for at least 60 years" without going into further detail.
However, the so-called credit crunch was already been referred to in such terms several weeks before Darling's admission.
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