Simple Credit Crunch Solution

Patr100

1694 wrote: »

Your right. Me, you and everyone else should leave the thinking about our finances to someone else. I'm sure they will do what's best for us....Oh wait.

Have you even tried to think of a solution to the problem? Or have you sat and watched as debt was heaped upon you, then made a smug comment on the faceless internet about how much debt you just recieved.

And an anonymous posting on a web forum is the cure all for the Nation's money problems. How relieved we all are to have your superior knowledge to free the world of debt.
When you "do the thinking" how about thinking even harder the reasons why your master plan hasn't already been implemented?

1694

Patr100 wrote: »

And an anonymous posting on a web forum is the cure all for the Nation's money problems. How relieved we all are to have your superior knowledge to free the world of debt.
When you "do the thinking" how about thinking even harder the reasons why your master plan hasn't already been implemented?

By putting it on this forum I hav asked for other peoples help in discovering just that. Some peopel have offered their opinions, based on what they see and their analysis of it. Constructive critcism if you will.

The main reason alternative solutions haven't been impelemented is because bankers are getting very rich off fractional reserve banking. Do you think they want it changed? How have the lives of many on this board been affected by this? Negatively. Do they want change? Do you want change? As you should be the change you want to see in others, clearly you think we would all be better off as feminine sanitary products.

(If nothing else I have cheered myself up with that slam dunk)

bordersbargainhunter

A solution would be:

Rather than the Government giving the £50Bn to the banks - who many believe got us in this mess anyway (neither agree/disagree, personal responsibility and all that) - the Government should give the money to us! Not MSE members only, though we would probably do alright, but divide it amongst all tax payers in the UK.:j

Reasoning - the Government is committed to 'spending' this money anyway, this would have the effect of re-stimulating the economy as people spent the money. Some would get the property market moving again, some would pay off debt, some would be banked (is there a limit on how many £50k accounts you can have/are there enough individual banks!), some would be spent on goods & services.

The bloke in the pub reckoned we would all get about £10M, however, on a quick calc. with c. 31.7M taxpayers in the UK (IR estimates for 2008/09), I think the total would be nearer to £1.5M each (£1,577,287ish).:T

Got thinking about it - new baby so lots of time awake in the night when your mind wanders round these places - would it work? What would be the effect on the economy? Would it give us African-style inflation numbers and de-value the pound? Though why should it if the Government is putting that sort of money into the banks which they have then said they want to filter out into the economy.....?

I await the benefit of your wisdom:A :A

Masomnia

Yes, the inflation would be incredible.

ie. there's nothing special about being a millionaire if everyone's a millionaire.

So for example the government gives me £1.5m, and I decide I want to buy a nice house, well, mansion with the money. But countless other people do that too. So everyone decides they want a £1.5m house, and go out to buy them. What happens is the average house rises to the value of £1.5m, because demand is so high and so many can afford it. The price has to rise.

The same is true for bread, cars, furniture, books, you name it. The pound becomes worth much much less, and no one is any better off in real terms.

bordersbargainhunter

but it was nice to dream especially while on Maternity pay and bringing in just a quarter of my normal income:eek:

Aegis

Masomnia wrote: »

Yes, the inflation would be incredible.

ie. there's nothing special about being a millionaire if everyone's a millionaire.

So for example the government gives me £1.5m, and I decide I want to buy a nice house, well, mansion with the money. But countless other people do that too. So everyone decides they want a £1.5m house, and go out to buy them. What happens is the average house rises to the value of £1.5m, because demand is so high and so many can afford it. The price has to rise.

The same is true for bread, cars, furniture, books, you name it. The pound becomes worth much much less, and no one is any better off in real terms.

Not to mention the fact that many of the banks would probably go bust without their bailouts, making things even worse.

Aegis

Oh, one more thing...

£50B distributed among 30M taxpayers would come to a little over a thousand each, not a million. We wouldn't get quite the same effect as handing out millions, but it would still induce inflationary effects and wouldn't leave the banking system any healthier than how we started.