The latest banking scandal

[TheBlueGibbon]

Nah mate,you don't get it. I've spent the most part of me life in S.A. The overwhelming view down there is that prison is not a rehabilitation centre,once you go in(i.e. for a petty crime like snatching a purse),you come back into society as a hardened criminal,and it is true. So people would rather take the law into their own hands than create another monster.

Norway disagrees and Norway's system is much more effective in terms of cutting crime rates and re-offending rates than South Africa's or the UK's.

 

[Bruce Wayne]

Problem is mate the retail banking industry is tied to the casino side, so you let that collapse then the whole monetary system collapses. We wouldn't get paid, bills wouldn't get paid etc, etc..

Not saying every bank needs to go bust, just the ones that don't perform. If a business flops then it going bust frees up capital to invest in ones that do the job better. That's how markets work. If a company isn't allowed to go under it destroys the whole thing, especially when the so called regulator is so useless.

We're seeing it here. Banks got into a mess but were propped up, yet here they are now having their credit rating trashed and behaving fraudulently. Why should they behave well when the government/tax payer will just bail them out all the time?

 

[Bruce Wayne]

Norway disagrees and Norway's system is much more effective in terms of cutting crime rates and re-offending rates than South Africa's or the UK's.

Can you fellas start another thread for all this?

 

[Deloodid]

Gutted.. i just got some tyres and petrol, i was about to solve the banking crisis.

 

[LeBlaqCoq]

Norway disagrees and Norway's system is much more effective in terms of cutting crime rates and re-offending rates than South Africa's or the UK's.

Norway disagrees and Norway's system is much more effective in terms of cutting crime rates and re-offending rates than South Africa's or the UK's.

Mob Justice Murder Accused Let Off

2012-06-20
Polokwane - '' Charges have been dropped against nine people accused of killing a Moletji man who
stabbed his girlfriend to death, Limpopo police said on Wednesday.
The Mankweng Magistrate's Court heard on Tuesday that there was insufficient evidence linking the
group to the killing of Johannes Mafikeng, said Constable Moses Malepo.''

As I said mate,Mob Justice is the way to go. The penetentiary system is just a complete and utter waste of time.

 

[TheBlueGibbon]

Not saying every bank needs to go bust, just the ones that don't perform. If a business flops then it going bust frees up capital to invest in ones that do the job better. That's how markets work. If a company isn't allowed to go under it destroys the whole thing, especially when the so called regulator is so useless.

We're seeing it here. Banks got into a mess but were propped up, yet here they are now having their credit rating trashed and behaving fraudulently. Why should they behave well when the government/tax payer will just bail them out all the time?

The issue with that then is if one of the major banks goes bust, what happens to the economy? With a lot of the British economy being based on the City of London and on services, if either sector performs badly the economy virtually collapses. Whilst in an ideal capitalist economy, they should have been allowed to fail, in practice, they may have been too large to fail. Ultimately to avoid another financial crisis, then the retail banking probably needs to be separated from the market trading parts of the banks, and I'm not convinced the ring-fencing solution is strong enough personally. The economy should also probably be diversified so it is not so reliant on one sector.

 

[LeBlaqCoq]

If people and companies are rubbish they need to be got rid of from the market or they'll just screw up again

Couldn't have said it better.

 

[Bruce Wayne]

The issue with that then is if one of the major banks goes bust, what happens to the economy? With a lot of the British economy being based on the City of London and on services, if either sector performs badly the economy virtually collapses. Whilst in an ideal capitalist economy, they should have been allowed to fail, in practice, they may have been too large to fail. Ultimately to avoid another financial crisis, then the retail banking probably needs to be separated from the market trading parts of the banks, and I'm not convinced the ring-fencing solution is strong enough personally. The economy should also probably be diversified so it is not so reliant on one sector.

Deposits are guaranteed up to a pretty big amount so most savers will be fine. If the dinosaurs aren't doing the job though let someone else have a go. The likes of Virgin and Tesco have wanted to start a bank for ages, whilst Google and Facebook want to get into payment processing. Get some new blood into the industry to shake things up a bit. No company should ever be 'too large to fail'.

 

[Bruce Wayne]

Sounds like both the Bank of England and the government were up to their necks in it as well.

http://www.economist.com/blogs/schumpeter/2012/07/barclays-woes

Bob Diamond did not believe he received an instruction from Paul Tucker or that he gave an instruction to Jerry del Messier. However Jerry del Messier concluded that an instruction had been passed down from the Bank of England not to keep LIBORs so high and he therefore passed down a direction to that effect to the submitters.

FFS