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A Generation Cursed ?

1K views 9 replies 5 participants last post by  Fat Boy Slim 
....amazing, isn't it! The Banks have done for us and the poor have had to pay. Now it's the working man's lack of productivity causing the problem!!

Why do we stand for this pish?
That is simply a wrong statement Chris.

What "did for us" were the policies of Greenspan, Brown and Slick Willy.

In wanting to be "socially responsible" they encouraged the banks to lend money to people for house purchase (at low interest rates) who could not afford to pay it back. They then relied on rising house prices to let people borrow more money against their equity and fuel consumer spending. America even underwrote these mortgages through companies like Fannie Mae and Freddie Mac, (can you believe those names?)

The greatest joke here is that Brown was made chairman of the IMF fund's policy committee. He main role was to oversee the liquidity of banks world wide and ensure that no disaster could befall them. A bit like putting a blind man behind the wheel of a bus.

Of course, unlike Browns economic policies foretold, house prices cannot always outstrip the ability to pay back the mortgage and soon American banks realised this and so began the bundling of AAA rated stocks with the toxic ones. At this point, the credit agencies were leaned on by our brilliant gurus to keep these ratings high.

And we all know what followed.

Banks to blame? Partially due to non due diligence. Credit agencies to blame? Yes due to not refusing to bow to pressure. Greenspan, Brown and Clinton to blame? 100% for not having an ounce of financial savvy between them despite their positions and reputations. Greenspan has belatedly admitted his role in the disaster.

So Chris, it's not all the banks fault although they could have done better. For the UK there is only one culprit and that is the Clunking Chancellor Brown who along with Blair should be in jail for a very long time.

Tony
 
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