Supertramp Posted June 12, 2015 Share Posted June 12, 2015 Fractional reserve banking caused the crash, which was global. Gordon Brown's light touch would have made no difference, and a Conservative Chancellor would have done exactly the same, if not more so, before the crash. Fractional reserve banking = Lending money you haven't got because it doesn't exist, and charging interest on it. If the debts are repaid (with real money,) the bankers get rich. If the debts are not repaid, the economy crashes and the taxpayer has to make up the losses and plug the hole. But if you save money whilst your rich you can use it to help you get out of a hole. If you spend it all like its going out of fashion then you are screwed. Link to comment Share on other sites More sharing options...
Anna B Posted June 12, 2015 Share Posted June 12, 2015 But if you save money whilst your rich you can use it to help you get out of a hole. If you spend it all like its going out of fashion then you are screwed. Very few governments have run a surplus, and it is considered a bad way of using money by many financial commentators. Personally, I think having something in reserve has to be a good idea, but not at the expense of essential services. The catch 22 is what exactly is considered essential... Link to comment Share on other sites More sharing options...
Bigthumb Posted June 12, 2015 Share Posted June 12, 2015 Very few governments have run a surplus, and it is considered a bad way of using money by many financial commentators. Personally, I think having something in reserve has to be a good idea, but not at the expense of essential services. The catch 22 is what exactly is considered essential... The government in countries like Australia heeded the warnings and never saw a recession at all. But then they didn't have an idiot like Brown around. I think the electorate made it pretty clear who they think contributed to our financial mess and who is clearing it up, and voted accordingly. PS.. Australia has banks you know. So does China. Link to comment Share on other sites More sharing options...
PeteM01 Posted June 12, 2015 Share Posted June 12, 2015 The government in countries like Australia heeded the warnings and never saw a recession at all. But then they didn't have an idiot like Brown around. I think the electorate made it pretty clear who they think contributed to our financial mess and who is clearing it up, and voted accordingly. PS.. Australia has banks you know. So does China. Australia was saved from recession by high demand from China for raw materials. That demand has now weakened and the Australian economy is not looking quite so rosy. I wouldn't argue against calling Gordon Brown an idiot but there were two bigger idiots around before the crash: “In an age of greater choice, he offers more overbearing control; in an age of greater freedom, he gives us more interference… “In short, in an age that demands a light touch, he [Gordon Brown] offers that clunking fist.” – George Osborne, 2006 “I want to give you [The City] lower taxes and less regulation.” – David Cameron, 2006 Link to comment Share on other sites More sharing options...
Bigthumb Posted June 12, 2015 Share Posted June 12, 2015 (edited) Australia was saved from recession by high demand from China for raw materials. That demand has now weakened and the Australian economy is not looking quite so rosy. I wouldn't argue against calling Gordon Brown an idiot but there were two bigger idiots around before the crash: “In an age of greater choice, he offers more overbearing control; in an age of greater freedom, he gives us more interference… “In short, in an age that demands a light touch, he [Gordon Brown] offers that clunking fist.” – George Osborne, 2006 “I want to give you [The City] lower taxes and less regulation.” – David Cameron, 2006 There is nothing wrong ith light touch regulation. Just so long as it is the right light touch regulation. Clearly the clunking fist of Gordon Brown ensured no debate and the wrong sort. That's the problem when you have an idiot that won't listen to advice. Brown simply failed to listen to anyone who wasn't saying what he wanted to hear. He ignored warnings for 5 years before Northern Rock crashed, and then failed to examine why it crashed and allowed the UK economy to follow it down the pipe. An example. http://www.thisismoney.co.uk/money/news/article-1608794/Brown-ignored-insurers-pension-grab-warning.html Edited June 12, 2015 by Bigthumb Link to comment Share on other sites More sharing options...
Anna B Posted June 12, 2015 Share Posted June 12, 2015 (edited) The government in countries like Australia heeded the warnings and never saw a recession at all. But then they didn't have an idiot like Brown around. I think the electorate made it pretty clear who they think contributed to our financial mess and who is clearing it up, and voted accordingly. PS.. Australia has banks you know. So does China. Australia dealt with their recession by giving the population approx. $1,000 each on the proviso that they went out and spent it. (That's from the horses mouth, I have relatives there.) I loved the politician's stance in this country, (all parties,) that no one could possibly see it coming, when the internet had been rife with it for more than two years, and various high profile academics had been warning of it as inevitable. Then they wonder why we don't trust politicians... In short it was banker's greed that got us where we are now, (Fractional reserve banking makes them a fortune, they can't lend it fast enough...) which is why I'm always banging on about why haven't they been punished, while we are all suffering from the fallout, and may well be for the rest of our lifetimes. Edited June 12, 2015 by Anna B Link to comment Share on other sites More sharing options...
PeteM01 Posted June 12, 2015 Share Posted June 12, 2015 It is not just bankers' greed; our politicians are also addicted to easy money from the City: no long term planning of a modern manufacturing economy, just let the bankers loose and live off the taxes... Link to comment Share on other sites More sharing options...
kidneystone Posted June 12, 2015 Share Posted June 12, 2015 If you want someone to blame, blame Gordon Brown. We sure do. I blame Thatcher Link to comment Share on other sites More sharing options...
Anna B Posted June 12, 2015 Share Posted June 12, 2015 It is not just bankers' greed; our politicians are also addicted to easy money from the City: no long term planning of a modern manufacturing economy, just let the bankers loose and live off the taxes... Totally agree. Politicians are also out of touch and no longer seem to have the interests of the people they purport to represent at heart. It's all about preserving their wealth and status. The whole creaking edifice of parliament seems hopelessly out of date and obsessed with tradition rather than getting the job done. As for Thatcher, she turned this country from a manufacturing nation into a tax haven for the rich. Link to comment Share on other sites More sharing options...
Bonzo77 Posted June 12, 2015 Share Posted June 12, 2015 The money used was to save RBS, not an investment. It was never meant as a profit making scheme and is subject to the banks value. You can't expect people to pay more then the bank is worth for the shares. You need to remember who personally OK'ed the RBS merger against the wishes of the regulator that created a bank that was too big to fail and who subsequently was forced to pump public money into the bank when it was near collapse. If you want someone to blame, blame Gordon Brown. Then why is Osborne about to make several of his powerful friends extremely rich by selling it off cheap? Link to comment Share on other sites More sharing options...
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