tag:blogger.com,1999:blog-2948538160252327076.post5655375654804083897..comments2023-11-02T15:48:50.381+00:00Comments on UK Bubble UK Economy: The magic circleAlice Cookhttp://www.blogger.com/profile/05753570123987780947noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-2948538160252327076.post-19817777540494131782008-04-21T12:43:00.000+01:002008-04-21T12:43:00.000+01:00Dear anon, "I have to say, that I was a strong bel...Dear anon,<BR/><BR/> "I have to say, that I was a strong believer of Capitalism and its invisible hand:"<BR/><BR/>Industrial capitalism is 'fine' as long as those nasty unions are allowed some strength.<BR/><BR/>Since the 80's UK capitalism has been based on parasitic finance and oil.<BR/><BR/>Now that the oil is declining we have little left.<BR/><BR/>No matter how grandiose the job title... (Speculator Extroadinaire)<BR/><BR/>...Everyone that does not work in farming,mining or manufacturing is essentially parasitic to them. (We can sell each other coffee/houses/life styles, all day long, but no wealth is created.<BR/><BR/>It is not worth sneering with joy; all the evil/clever money ditched housing 2/3 years ago. (Commodities).<BR/><BR/>Only the idiots are still holding title deeds with massive debt.(Excepting the bankers of course).Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-60691535487532471762008-04-21T08:39:00.000+01:002008-04-21T08:39:00.000+01:001- Isn't all this exercise a political one. Gordon...1- Isn't all this exercise a political one. Gordon Brown just want to be reelected at some point so if there a bank meltdown, the labor party will lose the next election. Their credibility has already been damaged with the first bank run in 100 years...<BR/><BR/>2- Unfortunately, you have to remember that the majority of the people are homeowners, so bailing out the banking system, would be to save the value of homes of the majority. I have to say, that I was a strong believer of Capitalism and its invisible hand: now it turns ugly and intervention, bail out is on full steam. Maybe we are witnessing the end of capitalism as such.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-87468068508470670912008-04-21T00:24:00.000+01:002008-04-21T00:24:00.000+01:00Would be interesting if they let them fail I must ...Would be interesting if they let them fail I must say...if only the government had been bolder on Northern Rock, and just declared them insolvent and transfer depositors money (at the deposit protection limit) to another safe institution, the whole mess could have been cleaned up in a few weeks.<BR/><BR/>At least some Central Bankers have the balls to tell it how it is...the Reserve Bank of Australia governor, Glenn Stevens, said recently<BR/><BR/><I><B>"Any such support should … come at considerable cost to the private owners and managers of the troubled entity. Public-sector support should not be used to 'bail out' private shareholders or those who were responsible for running the troubled institution," he said.<BR/><BR/>This was important to guard against "moral hazard" - where companies which knew they would eventually be bailed out without penalty would run higher risks, increasing the chance of getting into trouble.<BR/><BR/>Such penalties could include higher interest charged on loans, along with non-monetary penalties like sacking the chief executive, executives or board members of the company and ensuring private shareholders bear losses from the financial difficulty.</B></I><BR/><BR/>(taken from one of <A HREF="http://globaleconomicanalysis.blogspot.com/2008/04/central-bankers-guessing-everywhere.html" REL="nofollow">Mish's recent posts</A>)<BR/><BR/>Also note that the RBA has been hiking rates into a slowdown to contain inflation. Top marks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-7960512736266111772008-04-20T20:12:00.000+01:002008-04-20T20:12:00.000+01:00Why the worry if they fail? The settlement system ...Why the worry if they fail? The settlement system won't collapse and that's the only important thing. Everything else is just hyperbole because the only losers are holders of securities and people who want to borrow.<BR/><BR/>Really. All the BoE needs to do is transfer custody of insured deposit accounts to a safe bank and let everything else burn. Ok so there won't be much lending but that's no big deal. It's not a collapse.<BR/><BR/>NickAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-4995425027500241042008-04-20T19:54:00.000+01:002008-04-20T19:54:00.000+01:00qg, no we shouldn't let them collapse, but neither...qg, no we shouldn't let them collapse, but neither should the taxpayer reward failure. If a bank is insolvent, Darling should take it over, sack the board, and wipe out the shareholders. Then, refloat the bank.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-31962315700714927562008-04-20T19:36:00.000+01:002008-04-20T19:36:00.000+01:00One of the difficulties we face is that if several...One of the difficulties we face is that if several big UK banks are insolvent, then can we let them fail? It sticks in the throat to say it but it might be better to bail the banks out than let our finance system collapse.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2948538160252327076.post-74635089705972701842008-04-20T17:30:00.000+01:002008-04-20T17:30:00.000+01:00I fell into a burning ring of fire.....burn, burn,...I fell into a burning ring of fire.....<BR/><BR/>burn, burn, burn....Anonymousnoreply@blogger.com