oh dear: Lenders turn wary of house-price predictions

[PAH]

There is simply no need for so many banks, hedge funds etc.

In fact, the opposite it true. The more banks there are the wider the risk is spread, so not as much chance of a collapse of one bank pulling the economy down with it.

[BrilloPad]

In fact, the opposite it true. The more banks there are the wider the risk is spread, so not as much chance of a collapse of one bank pulling the economy down with it.

hear hear. we need lots of small banks. each with their own systems......

[AtW]

In fact, the opposite it true. The more banks there are the wider the risk is spread, so not as much chance of a collapse of one bank pulling the economy down with it.

Rubbish - many banks just hedged with each other reselling worthless paper and using multipliers.

The banks should be split in my view into those that deal with transactions and those that invest - the first ones should be 100% guaranteed and have no right whatsoever to invest money into anything but safe stuff like gilts. Anyone who wants to keep money save would invest there.

Maybe there should be a rule where lending money should have few steps - first is people who have the money (savers) -> bank -> final lending step, ie morgage.

Bankers should also know that high reward comes with high personal risk of going to jail if the bank gets into trouble - it should be part of employment contract and if they don't like they can fook off and do something else with their own money.

[PAH]

hear hear. we need lots of small banks. each with their own systems......

I'm thinking of changing my Ltd to a bank, so I can blow all my money on hookers and get bailed out by the govermin.

[BrilloPad]

I'm thinking of changing my Ltd to a bank, so I can blow all my money on hookers and get bailed out by the govermin.

Already done it. I got a £5m grant for "investment". But I snorted most of it......

[PAH]

Maybe there should be a rule

I'm sure there are going to be lots of new rules. But they'll just find loopholes or other schemes. People just can't help being greedy.

Only solution is to remove people from the system. They're only really needed for making judgements on investments. That's got to change when someone finally writes an AI proggie that lives up to the hype.

Maybe that's the end game for SKA. To conquer the world, first step is to accumulate all knowledge of everything!

[AtW]

I'm sure there are going to be lots of new rules. But they'll just find loopholes or other schemes. People just can't help being greedy.

It can be easily regulated - the problem is that regulators slept on the job or (like FSA in the UK) effectively acted on behalf of the City to limit damages in cases when things got out.

What should happen is that top brass should be personally responsible for anything bad that happens under their watch - if bank goes down then the board should go to jail until money are fully recovered or they die in jail (whichever comes first), if they don't like they should not be responsible for other peoples money.

The whole sales bonus system should be changed - if you worked in any "sales-driven company" you'd know what I mean - the rules of game are created in such a way that staff have to missell as otherwise they won't earn money. There should be no short term bonuses for big deals - only after 3-5 years it will be clear if deal worked out and it is at that time those who were involved should get the money kept in safe escrow until such time comes.

[shoes]

You've given all this a lot of thought atw, why don't you just go down the pub instead?

[PM-Junkie]

I'm sure there are going to be lots of new rules. But they'll just find loopholes or other schemes.

There are already plenty of rules - that isn't the issue. The issue is that the banks are no longer being regulated, and in the UK that is thanks to our "saviour", Gordon Brown. And he STILL doesn't get it, so I see no prospect of that changing to the degree it needs to any time soon.

The other big issue is that the USA clearly can't be trusted to have such a dominant role in the world financial markets. How that gets fixed is anyone's guess...

WW3 anyone?

[BrilloPad]

You've given all this a lot of thought atw, why don't you just go down the pub instead?

Could you really subject the regulars at his local to him?