Monday, 27 July 2009

State tightens its grip on the UK banking sector



Here is a further example how the clammy hand of socialism is gradually taking over the UK financial system.

Mr. Darling has taken it upon himself to tell banks how to run their businesses. "I've made it clear to the banks that we need to get lending going". Remind me again, does Mr. Darling have any experience actually running a bank? Would he know a good loan proposal from a bad one. Does he know anything of credit risk?

How long will it be before New Labour decide to introduce government determined credit growth targets for each bank? Not long, I'd say....

11 comments:

Anonymous said...

That is a very contradictory position to take. Clearly that market has failed. Banks should be run like public utilities. Bond salesmen nothing more than the plumbers of credit, and should be paid as such.

I support the full socialisation of the banking system.

Nationalise Barclays and HSBC now

Expropraite the expropriators

Anonymous said...
This comment has been removed by a blog administrator.
AntiCitizenOne said...

Alice,

You do have some very daft anonymongs here.

Government controls the amount of system credit through the reserve ratios and banks allocate it. BASEL2 was an terrible international agreement whereby reserves were eliminated, and thus the whole market changed from limited to unlimited credit. This suited governments as they taxed this credit boom.

The regulator quite rightly raised reserves (otherwise there'd be no banks left) just at precisely the wrong time. The reserves should be raised into a credit boom (lowering credit), and lowered into a shortage of credit.

Anonymous said...

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And in reference to the first post:

Freedom comes when the FTSE hits zero!!!

Mick said...

hi Alice,

And anyone else who's reading this.

any chance of a link on your sidebar to this page. I'm very anxious to get Google to index it quickly and I need all the help I can get! Read it and you'll see why.

http://www.yorkshire-guide.co.uk/thomasandstanley.aspx

regards

Mick

AntiCitizenOne said...

Mick, first thing to do is get their website closed down.

roym said...

"Remind me again, does Mr. Darling have any experience actually running a bank? Would he know a good loan proposal from a bad one. Does he know anything of credit risk?"

hmm, did daniels, hornby, or goodwin et al know either?

you showed an excellent graph a while back showing the destruction of shareholder value. once proud institutions completely run aground. did those responsible pay for their mistakes? did they heck! one of em is now running boots! i wonder if that will now go the same way as woolies?

APL said...

Anon @21.10: "Clearly that market has failed."

No, Clearly the market has failed to do what you appear to have ordered it to do, but as Canute found, nature takes its instructions not from men.

AC: "Remind me again, does Mr. Darling have any experience actually running a bank?"

He has little perception of the reality of the situation either. The securitization model that funded the 125% ltv and the negative amortization and the liar loans, that model is dead. It doesn't matter how many times Canute sits at the edge of the sea and says "go back" no one is listening to him.

AntiCitizenOne said...

APL,

Whilst I agree with your comment, Canute (Cnut) ordered the sea to retreat to show the limits of his power.

wildgoose said...

Well said AC1, I always get annoyed by people misrepresenting what Cnut was doing.

AP said...

AC1: "Whilst I agree with your comment, Canute (Cnut) ordered the sea to retreat to show the limits of his power."

With a hat tip to Twain, in this case history rhymes rather than repeats.

I apologise to the King and to Wildgoose too for annoying him/her too.