So what does $700bn get you? Simple it bails the people at the top of the money food chain out, and gets the ordinary man into more debt.
The more and more you look at the so called finicial crisis (greed karma) the more and more you see people feathering there own nests, the greed that got so many banks into this problem, is still there and apparently more prolific than ever. Not content with making a mess of their own systems of finance they want the common man to pay for their mistakes, and bail them out – yet again.
$700bn sounds alot of money but really it barley scratches the surface of the problem, and if anything will compound the current problem for a great deal longer. I hate to be a synic but those companies who stand to benefit the most from the latest bail-out plan, are also the most connected and often friends of the politicians and the lobbyists that make the legislature that ultimately gives them an open check to right down the worst debt on the books to the US tax payer.
It also sets a very unhealthy president for countries outside the US, the banks seem very comfortable with the idea of the governments buying the bad debt off their books, so much so it may be expected should there be another downturn in the markets the UK tax payer would have to foot the bill for a similar rescue plan.
Its uterly ridiculous to think that anybody thinks that a government buying almost $1,000,000,000,000 worth of debt is in any way a good idea. It gives the banks free reign to muck the system up again, bad debt is a way of keeping all the banks in check. The bad debt forces the banks to take fewer big risks, as they have to maintain at least a value of equal capital to the debt to stay afloat. Yet the US government is going to take all this debt and effective make it dissappear (at least for the banks) No investment is a bad investment anymore
Never before have we been in such a situation and never before have we come up with such ridiculuos and frankly childish solutions to the problems. Rather than spend money buying, spend money creating regulatory procedures and bodies to uphold them which aren’t in the pocket of any other organisations. That would be money well spent, and would ensure economic success many years down the line.
You Learn from your mistakes, not cover them up with more money.
Lloyds TSB HBOS
Today also saw the greed in the UK banking sector, not content with owning practically all the mortgage market the new LLoyds HBOS bank decided, it might cut most of the jobs in London instead opting to go with the Edinburgh HBOS HQ. My question is why would you move from one of the financial capitals of the world? and secondly why on earth would you be looking at cutting so many jobs. Surely the staffing costs have to been factored into the deal, apparently not – when things are rushed it helps nobody in the end.
They are still looking to turn a quick buck.
“We’re doomed Captain, doomed” Private James Frazer (Dads Army)