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Originally Posted by Chrysalis
One could argue why should spending be cut to increase profits for banking shareholders? Hurt the many to satisfy a few.
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Spending needs to be cut because between current debt, off the books debt and unfunded liabilities we're the most insolvent of the major first world nations. Thanks to the wonders of PAYG pensions rather than saving schemes and PFI we're in the poop to the tune of 3 - 5 times GDP. We don't have the concept of the 401K or other savings accounts and the majority of the populace don't make significant provisions for their retirement, we've a huge generation in the process of retiring and said generation's government spent all the windfall from North Sea oil reserves, privatisations and housing stock sell offs.
I am somewhat surprised you're naive enough to think that all the financial issues would magically have gone away without the banking crisis, the UK was in deep excrement according to reports from 2005.
The previous generation urinated all the money away and expect us to pay their pensions, sorry to say you'll have to get used to either not having all the services they took for granted or paying some truly nasty taxes.
---------- Post added at 21:34 ---------- Previous post was at 21:29 ----------
Quote:
Originally Posted by Chrysalis
I think anyone should accept a drop in profits during recessions and in fact be thankful they even still making a profit, these guys need a reality check as for some people its much worse as losing jobs or going bankrupt.
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If every company were happy to accept underperformance during a recession the economy would never leave it.
No they don't have to be thankful for anything. We're not all homogenised, faceless entities diving towards mediocrity, some companies are doing better than others and they performed below expectations. My own company is performing superbly but if we don't hit our numbers each quarter we'll take a pummelling and our shareholders will be upset.
The corporate world is, necessarily, quite selfish. There are nearly always some people who are doing much worse, doesn't require any company to be grateful they aren't them, they all have their targets to hit and will be punished accordingly if they fail to do so.
---------- Post added at 21:37 ---------- Previous post was at 21:34 ----------
Quote:
Originally Posted by Chrysalis
nothing to do with satisfying need for blood.
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It's everything to do with a need for blood. If you would take some time to actually look at these regulations you'll see that they don't really address the fundamental issues they just give the public their pound of flesh and make the politicians look like they have testicles.
---------- Post added at 21:41 ---------- Previous post was at 21:37 ----------
Quote:
Originally Posted by Chrysalis
As far as I am concerned they can make what profit they want as long as its not too risky and causing bailouts, because of this regulation is needed, if hsbc dont like it, its a case of tough deal with it. The rest of us have to deal with laws and regulations and work round it.
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This is rather at odds with the rest of your posts. I would suggest that working around the regulations would be moving to Hong Kong where the burdens are considerably lighter.