Quote:
Originally Posted by Chris
Believe it or not there are plenty on the political right who agree with you.  . Daniel Hannan, for example, has long argued that it is a debasement of the capitalist system to allow banks to make massive private profits in the good times but to socialise their losses - I.e. shove them on to us taxpayers - when things go bad.
The problem this time, however, isn't simply a matter of banks going to the wall due to dodgy loans. The flow of money has been disrupted to the extent that sovereign states are at risk of going bankrupt, and none of the half-measures taken so far have come close to addressing the chronic cause of the problem (the inability of weaker economies to remain competitive when locked at the same exchange rate with much stronger ones, particularly Germany). |
yep I am sure this what happening but think this happening ontop of the eurozone problem too.
Understand the thinking behind eurozone was american style state system.
Problem is europe we have inherent cultures of divisions would never work with that and language barriers.
What worked in america dont necessary mean it works in europe. The system half baked because inherent squabbles. Only way was to disguard those division for the common good. You hear here the anti europe lobby no doubt other nations got same lobbyists culture.
Such us blocking policies other nations doing the same for selfish needs.
It in strange way originally it was working when only small amount countries was involved but soon it got bloated it hit the buffers.
They expanded too quickly should really kept it elitist. The other was how much was it down to false accounting when greece was allowed in. Who did there accounting certain american bank.
However the problems have been made worse impacted by wall street fiasco 2008 the ponze scheme the sub blime fiasco's.
Think they can recover if the money men cut some slack.
Also means union may have to also look at itself revert back to elitist system with only few members.
Now not advicating they give money to lost causes hese money men or throw it in gutter. They must understand some countries caused preasures by bailing banks. Not all of it was self harm.
IF they understand say take those bank bailouts out the picture then reconsider the strength of economy without it then they help evert crisis. The other is why not for period ease the interests for short term to stop defaults but long term get gains. It seems people losing heads rather working together.
Them panicking dont do anything but make situation worse.
Them being sensible to a problem is maybe the situation not being helped by stupid panicky rating agents.
It has not helped IMF could'nt run booze up in brewary with legarde in charge. Her advice been no better than ten year old. those rating agents, IMF caused massive damage.
Its like mistakes over mistakes then bad advice over bad advice. We got people throwing toys out the pram all it needs is common sense all stop being children grow up.
Hopefully once we get out the experts learn from this produce better advice better practises.