Let the free market rip!

[Sysman]

For example according to your viewpoint a family who have lived prudently, do not have credit cards and only bought what they could afford should loose everything, whilst some selfish bast'd of a chav gets to keep everything?

Isn't that the way it always was with Labour?

[TimberWolf]

So those of us who have lived within our means should loose it all while those who racked up huge credit card debt should get off scott free?

For example according to your viewpoint a family who have lived prudently, do not have credit cards and only bought what they could afford should loose everything, whilst some selfish bast'd of a chav gets to keep everything?

It seems a bit harsh to call someone (actually the vast majority) of people who borrow "selfish bast'd of a chav"

So when rich savers risk losing their money, they want to be protected by socialism. I say they should live and die by the sword. But on the flip side borrowers have no such socialist benefit. The bank is propped up so that they can keep their debt, and to top that, they end up subsidising the capitalist savers (in taxes) who would otherwise have lost their deposits. The system appears to be geared up to screw borrowers. Just for once I would like to see the situation reversed, with borrowers getting away with something. Tis only wishful thinking though.

[AtW]

So when rich savers risk losing their money, they want to be protected by socialism.

No - savers should be protected 100% in failed banks because if they are not, then other savers in banks that have not fallen yet would withdraw their money and crash the whole system.

People who got in debt on the other hand present no such problem, in fact in this case they need to be forced to pay for their actions because otherwise you'd get mass defaults (if penalties low or zero) and the system will crash again.

So, in effect the protection of the system is actually symmetric - only it happens on extreme ends of each scale.

[TimberWolf]

No - savers should be protected 100% in failed banks because if they are not, then other savers in banks that have not fallen yet would withdraw their money and crash the whole system.

People who got in debt on the other hand present no such problem, in fact in this case they need to be forced to pay for their actions because otherwise you'd get mass defaults (if penalties low or zero) and the system will crash again.

So, in effect the protection of the system is actually symmetric - only it happens on extreme ends of each scale.

You make the crashing of the banks sound like a bad thing. Surely it would be really great? (especially for borrowers, under my system)

[AtW]

You make the crashing of the banks sound like a bad thing. Surely it would be really great?

Crashing of banks is terrible because it will kill commerce dead - we depend too much on them.

Thankfully current crisis now went past banks - this was the main danger actually, now it became economical rather than financial crisis, but at least bank runs were beaten - that was hard to achieve and I think a lot of people don't realise how lucky is everyone that we seem to be past this stage.

I think in the future maybe banks need to be split into 2 groups - one is only allowed to run transactions (to keep commerce alive) and charge fees for that, and the other will be investment banks - mixing up the two should be verbotten and any banks that causes their bank to meltdown will have to jump out of the tallest building in the country. This way savers could still lose their money but the system won't collapse.

[BrilloPad]

I have been doing a lot of thinking recently and have come to conclusion that all these bailouts etc. are merely postponing the inevitable. To really and truly compete again we need national regeneration.
In order to do this we must stop subsidising failing and weak banks and companies and let them go to the wall. The banks will only do it again if they get bailed out.
So rather than piling billions into them, let them all fail. Use the money to pay for the unemployment benefits for the people who will be made unemployed. So the CEO will get the same as the cleaner.
Next, put into place an attractive tax regime for business and inward investment - low taxes, low regulation etc.
A little suffering will be good for the national soul after years of softness - after all where's the Blitz spirit?

sasguru for chancellor. all 3 of you if necessary.....

[AtW]

sasguru for chancellor. all 3 of you if necessary.....

Me included?

I'll make sassy my tea lady - his talents should be just enough for that.

[bobhope]

You make the crashing of the banks sound like a bad thing. Surely it would be really great? (especially for borrowers, under my system)

Maybe you need to look up the meaning of the phrase "moral hazard"

[ace00]

Mein Gott what a bunch of retarded f*ckwits (except ATW). Like I do for my simple colleagues let me provide a nice list with small words:

1. If you cancel debts & savers it is not balanced, the debtors gain the savers loss.
2. If you let the banks collapse there will be no lending therefore recovery will be impossible.

And for the only people stupider than sas, the politicians, do this:

1. Directly lend to small business / startups ("let a thousand flowers bloom" policy).
2. Pay me for 3-10.

[BrilloPad]

Mein Gott what a bunch of retarded flipwits (except ATW). Like I do for my simple colleagues let me provide a nice list with small words:

1. If you cancel debts & savers it is not balanced, the debtors gain the savers loss.
2. If you let the banks collapse there will be no lending therefore recovery will be impossible.

And for the only people stupider than sas, the politicians, do this:

1. Directly lend to small business / startups ("let a thousand flowers bloom" policy).
2. Pay me for 3-10.

If you can't let the banks collapse then they need to be nationalised. Else it is a one-way bet : they can do as they please.

Letting Lehmans go down the pan makes conditions tough now : but in future years we will be better off for it. Let the free market decide.