I'ma struggling to understand what the endgame shall be - Bank bonuses 'to run to bil

[Green Mango]

I thoroughly disagree.

Banks greed caused the problem in the first place.

It's very easy to blame it on the little one for taking out a risky mortgage etc, but if the product were not available in the first place.

Perpetuated with the idea of continuous wealth generation, without consideration for ethic or moral, banks exploited anyone and anything for profit. They could have stopped way back and sat with smiles on their faces content with the profit they had made. But no, they kept going. We the tax payer even assisted propping up this deeply flawed system.

Someone shall always come worse off in this system and I don't believe that is a direction we should be heading.

That is too simplistic, it was poor legislation, poor regulation, poor oversight by government and banker,broker and the morgage lender themselves who collectively caused the problems. In other words may parties share the blame...

[Freamon]

I am not sure any of you will bother to read this, but I think it's well worth your time:

Positive Money

I've got this nasty feeling that the current system is buggered. Even on a very simple measure, how on earth would anyone in their twenties 'buy' a house?

They are correct to say that banks create money, but this bit is wrong:

Laws that make it illegal for you to print your own £5 or £10 notes have been in place since 1844. But those laws haven't been updated to account for the fact that almost all money now is electronic. Because of this loophole, banks worldwide now have the power to create money, effectively out of nothing

Banks were able to create money long before computers existed.

[scooterscot]

That is too simplistic, it was poor legislation, poor regulation, poor oversight by government and banker,broker and the morgage lender themselves who collectively caused the problems. In other words may parties share the blame...

I agree. They were however instrumental creating the situation that now exists.

Keeping it simple is not a flaw.

[KentPhilip]

I thoroughly disagree.

Banks greed caused the problem in the first place.

It's very easy to blame it on the little one for taking out a risky mortgage etc, but if the product were not available in the first place.

Perpetuated with the idea of continuous wealth generation, without consideration for ethic or moral, banks exploited anyone and anything for profit. They could have stopped way back and sat with smiles on their faces content with the profit they had made. But no, they kept going. We the tax payer even assisted propping up this deeply flawed system.

But it is right to blame it on the "little one", if it is indeed their fault. People should accept that when they make a mistake they have to accept the consequences of that mistake.
Has it not occurred to you the reason why they are referred to as a "little one"? It's because for the most part they are greedy, unhealthy, feckless, lazy, thick, ignorant, overweight fools. Everybody else learns how to get on in life.

[Freamon]

Banks were able to create money long before computers existed.

A quick look at their explanatory video confirms that they actually have no idea how money creation works:

2) Who Creates Money? | Positive Money - Fixing Social & Economic Problems by Ending Fractional Reserve Banking

There is a much much better explanation here:

Banks Create Money

[scooterscot]

We'll never change the opinion of someone like scooterscot though. It's just too easy and comforting and intellectually lazy to simply blame the banks for everything, especially when encouraged in that belief by sneaky politicians. No wonder the tabloids and every loud mouthed pub bore in the country thinks the same way.

P.S. I can well understand how easy it was for the Nazis to make the Jews a scapegoat for Germany's financial woes in the 1920s

That belief must be an incredible comfort. Reducing the opinions of others to the lowest common denominator, ergo it must be true.

The last time a tabloid touched these hands I cannot remember. I do not blame the banks for everything however they played their hand.

The fact that the government were unable to do anything about the bonus situation only highlighted their ineptitude as capable managers whilst showing each and every voter how powerless they actually are. This is what happens when we're dependant on one industry. It's a sad state of affairs, even the unions are becoming powerless, they could not close a corner shop if they tried.

We're fast approaching a fully fledged bilateral society of the haves and the have nots in proportions never seen in this country before. The poverty I've witnessed on our own doorstop to those living in the city you might think you crossed continents, actually it was a 30 minute train ride outside of the M25.

[scooterscot]

It's because for the most part they are greedy, unhealthy, feckless, lazy, thick, ignorant, overweight fools. Everybody else learns how to get on in life.

Yes I've been to Newport. All the more reason why the options should not have been put in front of them in the first place.

I don't consider my dog to be the most intelligent creature in the universe. If however I put too much food in bowl she will leave some for later. The fat cat just buries his nose and keeps eating.

[scooterscot]

Banks Create Money

No. Business create money, banks steal it. Or at least they have been for the last year on the interest paid on my savings whilst charging goodness knows what on their other products.

[VectraMan]

It's very easy to blame it on the little one for taking out a risky mortgage etc, but if the product were not available in the first place.

I disagree. It's the drug dealer argument: is the drug dealer soley to blame for people taking drugs? I don't think so, and I don't think the banks can be blamed totally for risky mortgage lending. Of course we should have regulation, and safeguards to protect the ignorant as much as possible, but at the end of the day taking out a mortgage you can't afford is the responsibility of the borrower. Otherwise we're just saying that people shouldn't be held accountable for their own financial decisions, and where does that leave us?

[scooterscot]

I disagree. It's the drug dealer argument: is the drug dealer soley to blame for people taking drugs?

So are you saying we should legalise drug dealing and have police come down hard on the users. I like it. Let's tax the users for their irresponsible behaviour.

Desperate people do desperate things, a civil society would beckon those with control to cater the desperate for they never know when the tables might turn. Oh I forgot it doesn't matter, unethical risk taking is punishable by bonuses.