Monday, 20 December 2010

The Boys and the Banks

The Telegraph is worried that we're bashing our banks instead of backing them as we should.

I'm truly amazed. We ARE "backing" the banks. Isn't that what this massive billions of pounds bailout is?
Aren't we going to be paying this off for the next 5 years minimum, but more like a decade - so as to support the banks?

The case for regulating the banks is ... that if they don't offer investors a safe and stable system they won't get investment. No one wants to put their money in an organisation that might any minute crash into rescue mode by its government.

The banks messed up our economy. Now I don't actually blame them for that so don't all yell at me as a bank basher. Like any other company a bank is about making money.
But the trouble is if all the banks are left to do that in the short term it can wreck the economy in the long term, as just happened. Short term self interest is not enough but in the heat of competition that is exactly what dominates.

So something else has to come into play and the only other component in the economy powerful enough to tweak the banks is government.
This is what we had pre-Thatcher and it worked very well indeed. Then the lady let the boys out to play with no rules in the playground.

I wouldn't worry about the banks threats to move top staff elsewhere. They will have great difficulty going anywhere that might attract them. Who wants a bunch of boyos who's messed up?
Of course they might find a home in some nasty little third rate dictatorship but I doubt that's what they want after playing the game in London.

Oh dear are they hiring 7,000 staff abroad? Hadn't you heard that's what they are doing anyway? It's called call centres, and outsourcing. Welcome to globalisation.

Poor diddums is there a nasty "spiteful 50p top tax rate"?
Well it might be a good idea if the top rate tax payers actually PAID their tax. Then there might be less hacking at the NHS, or higher tuition fees and so on - and less prospect of riots in the streets.

After all having to use gulags to control public protests, and running violence levels unsafe for visitors isn't good for business dontcha know!

As for bonuses shouldn't the banks be putting this extra money aside in case things go poopy again? Mama Government isn't made of money you know and she's about bankrupted by the last cleanup job she did for you when you browned your trousers.

Thank heavens for A. Merkel, German banks with good sense and EU mechanisms to enforce it. Angie baby is just not going to stand for any more nonsense and neither are her people. Since they're the only ones left with any money in the game you better listen to what the lady wants.
Which is regulation.

Telegraph article here


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