The end of the world as we know it?

[adrian29uk]

Can someone explain something to me. Sorry if this sounds stupid, but if the banks are in debt, and then everyone goes to take their money out like they did with NR, would the banks be in further debt?

Since they are in debt, how can they give you any money? Worst case scenario, you would not get your money at all?

 

[El Presidente]

Since they have no money how can they give you any money?

They can't

 

[Uncle C]

Quote:
Originally Posted by BlueWhite
Free market forces - why should taxpayers bail them out?
Why dont you spend abit of time reading about whats really happening.

This deal is not to bail out the bankers etc its to bail us all out, including you.

Free market forces - why should taxpayers bail them out? .. is what many Republicans are arguing.

If someone drives the wrong way down a dual carriageway and causes a multi car pile up, you dont sit debating about what a naughty boy he has been. You get on with the rescue of dead and injured, and only later return to prosecute the driver.

The bankers etc will be taken to task later. Now is the time to save the Worlds economy.

 

[adrian29uk]

So is it not best to take any small savings and spread them around or just take the cash and stick it under the floorboards?

 

[Uncle C]

They can't

And thats the key here. If everyone wanted their money a total collapse will ensue. The US Government is trying to avert this happening.

 

[Albion Dan]

Free market forces - why should taxpayers bail them out?

Because unfortunately the alternative may be that banks go down, no one can borrow, housing market is wiped out, most building firms go down, millions unemployed, knock on effect to almost all businesses, ie major shit.

I think its grossly unfair too but something needs to happen.

In days gone by there would have been riots about this sort of shit, my how we have all been tamed in obediant sheep like citizens.

 

[Lord Bracknell]

So can someone explain something to me. Sorry if this sounds stupod, but if the banks are losing money, and then everyone goes to take their money out like they did with NR, would the banks be in further debt?

Since they have no money how can they give you any money?

The whole point of banks is to ensure that money CIRCULATES. They don't actually have any of their own. "Their" money belongs to other people, who want to see it work.

If the banks can't make the money that they hold work properly, they need to be forced to do better. The government (which is "of the People and by the People") is perfectly entitled to intervene.

The interests of the banks' shareholders come quite a long way down the pecking order of importance. The interests of overpaid, incompetent bank executives come NOWHERE.

 

[Les Biehn]

Financial experts are saying we are entering a new chapter in
the American economy. Unfortunately it's Chapter 11.

Chapter 11 is a file for bankruptcy. I only know this because it was on Entourage last night.

 

[Les Biehn]

So if the circulation of money has stopped whos holding all the money?

 

[Seagullible]

So if the circulation of money has stopped whos holding all the money?

Euro Lottery

 

[Uncle C]

So if the circulation of money has stopped whos holding all the money?

The banks are holding enough to keep their business viable. The rest has been leant out to businesses etc as loans

 

[El Presidente]

So if the circulation of money has stopped whos holding all the money?

It was lent to losers, boozers, jacuzzi users, cavedwellers, caravan dwellers, halfwits, nitwits, inbreds and cokeheads, because the banks were too busy earning commission on these high risk loans to worry about how it would be repaid. All the money was spent on scratchcards and SKY+ boxes, and now the borrowers have stopped repaying, the banks are left with nothing.

 

[Dick Knights Mumm]

From the outside it looks like certain banks (not all) - not content with traditional business have taken big risks to secure fatter, quicker, profits.

If the government bales them out - what happens next time ? Presumably they go after even fatter quicker profits as what the heck - they know they will be baled out again.

 

[Uncle C]

It was lent to losers, boozers, jacuzzi users, cavedwellers, caravan dwellers, halfwits, nitwits, inbreds and cokeheads, because the banks were too busy earning commission on these high risk loans to worry about how it would be repaid. All the money was spent on scratchcards and SKY+ boxes, and now the borrowers have stopped repaying, the banks are left with nothing.

The banks started giving money to high risk investments so they could up their turnover and get higher bonuses. I think these bankers should be made to repay these fraudulent bonuses or face jail.

 

[Uncle C]

From the outside it looks like certain banks (not all) - not content with traditional business have taken big risks to secure fatter, quicker, profits.

If the government bales them out - what happens next time ? Presumably they go after even fatter quicker profits as what the heck - they know they will be baled out again.

There will be greater regulation in future.

 

[Dick Knights Mumm]

There will be greater regulation in future.

Again - from the outside - there must be a question mark against that statement. These firms cosey up to governments to get less regulation - with the threat that they will up sticks and go elsewhere. It seems that someone somewhere is always saying further regulation will sort whatever problem out. But the regulators always seem to be two steps behind.

 

[Dick Knights Mumm]

Also is it true that the head of HBOS - who led them into the mess has been appointed tothe board of the new company ? So where is the penalty there ?

 

[Uncle C]

I saw the look on Gordon Browns face the other day when he was on this topic. He was angry and with gritted teeth.
After the dust has settled he will be after the city boys that nearly wrecked the country.

 

[Uncle C]

Also is it true that the head of HBOS - who led them into the mess has been appointed tothe board of the new company ? So where is the penalty there ?

These boys undoubtedly have the talent to run a Bank, but there needs to be accountability. Like I said, I would have any undeserved bounuses confiscated.

 

[Lush]

The banks started giving money to high risk investments so they could up their turnover and get higher bonuses. I think these bankers should be made to repay these fraudulent bonuses or face jail.

Except it's probably been spent on the stockbroker equivalent of 'scratchcards and SKY+ boxes' ie apartments and ferraris and holidays and designer clothes.

All based on money that doesn't even exist.