Why bail out failed banks?

esbo

Reaper wrote: »

esbo - I'm not sure you've thought this through. Easy to say "let them fail" but I'm not that keen to wave goodbye to my hard earned life savings.

If a lot of the banks crashed the rest would fall as panicking customers tried to take out their money. If the whole lot went the government would not be able to compensate us, they wouldn't have anywhere near enough cash to do it, and that would occur worldwide.

The world economy would nose dive and we would end up in a 1930s style humdinger of a recession.

Better to save the occasional failure now and then deal with blame and better regulation later.

You won't be waving them by they are protected to £35,000.


All you are argueing for is re-arranging the deck chairs on the titanic.
You might have you savings back but they will soon be wiped out by inflation.
You can't magic money out of a hat.

A collapse of the banks will get some good captains back in charge, which is what
we need for future recovery. The current lot and just cramming us deeper down the sh*tter.

superstar_2

esbo wrote: »

They fail that's tough but so what, why bail out failed companies, they failed,
bosses will remain in power and ultimately fail again making the situation worse.

Those who make bad decisions will not learn the lesson, the result will be
an even bigger failure.

Simple answer - The government has to, no choice because it's people's money! If they let the people lose their savings, nobody's going to vote for you! but I agree those jokers needs to be sacked.

agent_orange_2

Reaper wrote: »

. If the whole lot went the government would not be able to compensate us, they wouldn't have anywhere near enough cash to do it, and that would occur worldwide.

.

The BOE printing presses would be red hot , your compensation would buy you about two loaves of bread.

Remember a good dose of inflation eats away the debt.

pumpndump

[quote


"You can't magic money out of a hat."

[/quote]

Well, yes you can. That's how we got in this mess in the first place!:D

Hungerdunger

esbo wrote: »

You won't be waving them by [I think you mean "Good bye"] they are protected to £35,000.

But if a load of banks and building societies collapsed, where would the FSCS or the government get the money from to meet their obligations?

Masomnia

esbo wrote: »

You won't be waving them by they are protected to £35,000.

You're assuming that other banks will be stable enough to provide the capital to reimburse the savers who lost out.

esbo

superstar wrote: »

Simple answer - The government has to, no choice because it's people's money! If they let the people lose their savings, nobody's going to vote for you! but I agree those jokers needs to be sacked.

Most people have no saving, so it's no skin off their noses.

edwinac_2

agent_orange wrote: »

The BOE printing presses would be red hot , your compensation would buy you about two loaves of bread.

Remember a good dose of inflation eats away the debt.

I've been thinking along those lines, too. Maybe that's the logic of the London bankers.

Securitise all the toxic debt they have created and parcel it up as "assets". Dump it on overseas sovereign wealth funds, and then stoke hyperinflation through the central bank's printing press. Severe economic austerity for the little people is inevitable but the debt is essentially wiped out by the devalued currency.

That was tried in 1920s Weimar Germany in the hope of escaping the crippling war reparation debts imposed through the Treaty of Versailles. Notably, the Treaty was conjured up by the usual suspects - the Houses of Rothschild, Morgan and Warburg - as another of their devious debt traps, laid to enslave the people for generations to come..

Plus ca change, plus c'est la meme chose...

edwinac_2

superstar wrote: »

Simple answer - The government has to, no choice because it's people's money! If they let the people lose their savings, nobody's going to vote for you! but I agree those jokers needs to be sacked.

What if all the political parties are wh0res of the same financier oligarchy?

What if parliamentary democracies such as ours are a fraud, used to create the illusion of democratic choice, and used to fool the people into blaming all their woes on the scape goats of the day - the toothless politicians currently "in power"?

What if the financier oligarchy does all the important decision-making, and uses its parliamentary puppets of whatever colour (it owns them all) to implement those policies?

Over the pond, you can currently see behind the curtain where the stage is being set to replace the neocons' Al-CIA-duh bogeyman with the new enemy, Russia..

Confrontations in the Caucasus have already been engineered, and in the dueness of time, the team of Russia-haters who have been installed to control Baruck Obama, in particular the Rockefeller Trilateralist, Zbig Brezezinski, will use their new Democratic puppet-president to crank up hostilities towards Russia to levels not seen since the Cold War..

My point is that the power elite work both political parties.. Any party, or government that refuses to sell out to the international bankers is ruined in some way, usually through contrived economic crises, and if that fails, through murder..

ianmr65

esbo wrote: »

They fail that's tough but so what, why bail out failed companies, they failed,
bosses will remain in power and ultimately fail again making the situation worse.
.

Not sure exactly which banks have been bailed out:

Sure Northern rock is trading as a branch of NS&I, but HBOS will cease to exisit. Ditto B & B, ditto Bear stearns, lehman bros, merrril lynch. Fortis, AIG and many more

Some companies that go bankrupt can just be allowed to fail - XL holidays is a good example.

Some companies, like Banks, and Railway operators, and energy companies, are shotgunned into a merger, nationalised, or broken up and sold.

If British energy went bust do you think the Gov,, would sit idly by and let the nuclear power stations just tick over..:eek:

What's happening with failed banks is like a long slow death, in a hospice, as opposed to dieing whilst causing a 5 car pile up on the M1.

The passing might be easier, and the impact on innocent bystanders, considerably less, but you end up just as dead.