RBS about to implode?

wymondham

funkyfreddy9k wrote: »

so letting every high street name (infact every big business) in britain collapse is a viable alternative? I think not.

You can't pump money into unviable companies (banks) indefinately. This is the thing that gets me about banks, when the times are good they rake it in and are a private business for their shareholders, when times are bad they look for handouts and are not allowed to fail like any other business due to their 'role' - they need to decide what they are - public or private and behave accordingly.

If I could see any good coming out of these bailouts then that might be easier to swallow, but this all seems relentless and smacks of desperation.

funkyfreddy9k

wymondham wrote: »

You can't pump money into unviable companies (banks) indefinately. This is the thing that gets me about banks, when the times are good they rake it in and are a private business for their shareholders, when times are bad they look for handouts and are not allowed to fail like any other business due to their 'role' - they need to decide what they are - public or private and behave accordingly.

If I could see any good coming out of these bailouts then that might be easier to swallow, but this all seems relentless and smacks of desperation.

but it you dont pumpt money into the supposedly unviable banks, then how are perfectly viable profital normal companies supposed to continue with no credit facility for which they rely on for cash flow?

Kenny4315

funkyfreddy9k wrote: »

but it you dont pumpt money into the supposedly unviable banks, then how are perfectly viable profital normal companies supposed to continue with no credit facility for which they rely on for cash flow?

Why don't they go direct to the source of the business with the credit, rather than passing through these incompetent banks, tax breaks, government backed loans, or whatever.

mrposhman

Snooze wrote: »

Why would "we" have nothing to spend our physical cash on? Are products and services suddenly going to become free overnight or do you know something I don't ?

Rob

Quite simple really.

We buy our food and goods from corporations.
These corporations use money, usually on credit, or if not cash in a bank to buy stock. Once this avenue of credit / cash is severed, they cannot get stock in. Therefore you will see what happened in zimbabwee with nothing on the shelves, hence the cost of food and all goods rises in line with supply and demand, increasing inflation and causing savings to become worthless.

People will lose their jobs, civil disturbances will rise and there will most likely be riots which if the banking sector was completley gone could result in civil war as those with access to basic goods break away from the normal ones like us.

The only ones that benefit are those ironically at the bottom of the manufacturing structure now such as farmers etc but thats only if they have enough cash to run their tractors and buy more seeds.

Do you want to live in a world like that?

Cleaver

mrposhman wrote: »

Quite simple really.

We buy our food and goods from corporations.
These corporations use money, usually on credit, or if not cash in a bank to buy stock. Once this avenue of credit / cash is severed, they cannot get stock in. Therefore you will see what happened in zimbabwee with nothing on the shelves, hence the cost of food and all goods rises in line with supply and demand, increasing inflation and causing savings to become worthless.

People will lose their jobs, civil disturbances will rise and there will most likely be riots which if the banking sector was completley gone could result in civil war as those with access to basic goods break away from the normal ones like us.

The only ones that benefit are those ironically at the bottom of the manufacturing structure now such as farmers etc but thats only if they have enough cash to run their tractors and buy more seeds.

Do you want to live in a world like that?

I knew someone more intelligent than me would be along soon to explain what I meant. A textbook example of Reverse Economic Fiscal Spiralling.

Kenny4315

mrposhman wrote: »

Quite simple really......The only ones that benefit are those ironically at the bottom of the manufacturing structure now such as farmers etc but thats only if they have enough cash to run their tractors and buy more seeds.

Do you want to live in a world like that?

Wonder where my nearest Tractor dealership is ??

itsnever2lateisit?

luvpump wrote: »

Full Nationalisation of several Banks is more than likely IMO, & this latest Bail out is simply postponing the inevitable...the Economy is shafted !!

Michael Foot must be dancing in his coffin

mrposhman

Kenny4315 wrote: »

Wonder where my nearest Tractor dealership is ??

:rotfl: :rotfl:

StevieJ

funkyfreddy9k wrote: »

but it you dont pumpt money into the supposedly unviable banks, then how are perfectly viable profital normal companies supposed to continue with no credit facility for which they rely on for cash flow?

Why don't RBS lend themselves some funds

bubblesmoney

StevieJ wrote: »

Why don't RBS lend themselves some funds

thats what the BOE is going to do courtesy of brown now. quantitative easing is the magic bullet now.