Bailing out the Banks AGAIN !!

Welsh Decorator · Post by **Welsh Decorator** » Mon Jan 19, 2009 10:29 pm

Way to go IDBI

Stoday · Post by **Stoday** » Mon Jan 19, 2009 11:36 pm

Those (w)bankers will be suffering.

They've almost certainly got shares in their employer. Yesterday RBS fell below 12p a share. Just over a year ago the shares were 600p.

Raf · Post by **Raf** » Tue Jan 20, 2009 2:00 pm

where did all the money go? how can all the banks loose so much money in months that they have their backs against the wall? these are institutions that always make profits.... over all their years in business..... so where did it all go? well nowhere!

people; this is a manufactured event to bring about changes that we would not have opted for had we still been going through periods of boom or relative growth.

Foggy · Post by **Foggy** » Tue Jan 20, 2009 3:48 pm

article in paper today on the big 4 bosses and their wages ..the minimum was 600k a year

NICE JOB IF YOU CAN GET IT

FOUR bankers will still rake in £3.35 million in salaries despite being in charge when huge loans were given to people who could NEVER repay them.

Their disastrous policies have helped cripple our economy with banks now terrified to lend – putting thousands out of work.

Yesterday Gordon Brown was forced to announce a second bank bail-out – a guarantee against losses which is effectively a blank cheque for the banks.

But Barclays boss Marcus Agius, Lloyds’ Sir Victor Blank, Royal Bank of Scotland’s Philip Hampton and HSBC’s Stephen Green will still trouser their massive pay packets. Mr Brown gambled more than £500 BILLION of taxpayers’ cash on the banks.

With RBS soon to reveal Britain’s biggest ever loss, the struggling Prime Minister branded the bosses who brought it to its knees “irresponsible”.

thescruff · Post by **thescruff** » Tue Jan 20, 2009 4:46 pm

I'm sure I read somewhere recently that Virgin owe the banks something like 1.4 billion quid.

Ok slightly more than that

Virgin

Foggy · Post by **Foggy** » Tue Jan 20, 2009 5:56 pm

christ thats some debt
as long as virgin dont put my bill up to pay for it

thescruff · Post by **thescruff** » Tue Jan 20, 2009 6:10 pm

You can picture a meeting between Richard and Brown nose.

Gordon me old buddy, I have a little loan with this German Bank and they're getting a little concerned.

Richard Darling, don't worry how much would like, I'm sure we could work something out wink wink nudge nudge.

Well sweetheart I was thinking 4.5 billion quid but if you could stretch to £5 billion we could have a lovely holiday on your new private island wink wink nudge nudge

IDontBelieveIt · Post by **IDontBelieveIt** » Tue Jan 20, 2009 6:22 pm

Raf wrote:where did all the money go?

Welcome to the world of GREED. The money went in several areas -

1. Our bad debts. In the good old days when you wanted a mortgage the lender would let you have 3 X salary. At the same time they assessed you ability to repay, they looked into how much you spent on food, car loan etc and your income.

As house prices rose, all warmed up by people such as estate agents (they work on a percentage of sale value

) houses became unaffordable to the first time buyers. It has been proven time and time again that it is the first time buyers that bring the housing market to a grinding stop (and quite right too as it was an automatic stabiliser on house prices). And so to keep the money flowing the lenders moved to 4X salary then 5X salary and then like the USA an almost don't care - how much do you want type attitude. No checks on ability to repay, as long as the lender can kick out the borrower and sell the house they did not care.

2. The same thing has been going on in the USA for years. Now our greedy bankers or as Stoday rightly puts it (w)bankers decided it would be a good idea to buy up bulk US house loans. These are the 'sub-prime' loans - which basically meant loans made to people that could ever afford to pay back in a month of Sundays but out went the loans regardless. The US banks sold blocks of such loans which have become known as 'toxic loans' of which our banks need to come clean about so we and the Gov know exactly just how bad it is - and it IS bad. The banks here were taken in hook-line-and-sinker because they are greedy shytes and why I now say close them down, get rid of the people and the culture of greed and start again.

3. People here were and are borrowing large amounts of money to fund their artificial lives. This is to fund things like a new Porsche, a swimming pool in the garden, a new 4X4 for the wife and all that sort of cr4p. As collateral the banks secure loans against the borrowers house value. House prices were going through the roof so more and more borrowing was possible and boy did we borrow! Problem is that it was money borrowed from other nations it was NOT wealth created here.

Then the bubble burst. It was not sustainable - any clown could see that. Well except Government, the banks, the 'City Whizz Kids'. You know all the prats that paid themselves £1M bonuses because they had done such a fantastic job. The dustman down the road, who probably not earn £1M in his lifetime, could see it coming problem.

The money has 'gone' to people that could never ever pay it back on houses that were being sold for funny money and are now worthless. It really has vaporised.

Welsh Decorator · Post by **Welsh Decorator** » Tue Jan 20, 2009 7:26 pm

There is worse to come IDBI, they reckon ole 'I know whats best' Brown, is going order MORE money to be printed!

How good is that, the RBS has lost more than the whole country's debt!

There should be a call to nationalise ALL the bank's.

rotciv · Post by **rotciv** » Tue Jan 20, 2009 8:16 pm

In my opinion the worst culprits in this mess were the credit rating agencies which were still giving AAA ratigs to banks that were on the verge of collapse. till now investors used to take considerable account of these agecies ratings in their decisions wheter or not to invest in a particular company or country.

scot-canuck · Post by **scot-canuck** » Tue Jan 20, 2009 11:11 pm

how about instead of giving the banks the money, the govt simply cuts income tax for x months, that would improve the economy to no end. Simpler still, write everyone in this country a cheque for £10,000, which would get people spending money and getting economy moving.

Problem is though, that would put money in peoples pockets which is exactly what this govt doesn't want.

What they want is a population of scared, paranoid plebs they can lord over, while scratching their rat friends backs.

Disgusting really

thescruff · Post by **thescruff** » Tue Jan 20, 2009 11:27 pm

Or a more sobering thought;

It's a Brown nose way of getting the Euro stuffed up out arris.

No other way dear Mugs.

Mooncat · Post by **Mooncat** » Tue Jan 20, 2009 11:28 pm

The money hasn't evaporated, it's still hidden away. The only solution is to force it into the open by making it pointless to hide. HOW is another question I can't answer.

If you are a small debtor, the banks will get a debt recovery company on to you, 'til you've paid it back. Will they also do the same for those "advisers" who facilitated the £M loans?

Raf · Post by **Raf** » Wed Jan 21, 2009 10:59 am

IDBI your thoughts are correct but keep in mind that values are artificial..... okay tangible stuff was bought by people who couldnt afford it but this is like a drop in the ocean compared to the money (well digital figures on a computer screen) circulating in the whole economy. its not enough to bring countries to their knees (even taking the multiplier effect into account).

if the man in the pub knew what was going to happen with such a policy of lending, then is it unreasonable to assume that the Oxford educated banker did too?

this smells funny to me..... its not a cowboy mistake that was made collectively.... greed definatley took part though.

im just waiting to see what the new plan is to bring us out of this mess that both the US & Europe will back. either we go to war (as per previous outcomes of recessions/depressions) or some major structural changes will come about in western govts and finance industry.

but we will welcome this change as it will put bread on the table again....