Quote:
Originally Posted by bl52krz
Hi Maninder. Whilst I agree in part with you, do you not think it would have cost us, the paying public, you and I, less, if the banks and their gambling houses, because that is what they are, had been ‘allowed’ to fail big time? How many of the millionaires who have piloted(crashed) in flames! working as the ‘big noise’ at the top of banking, have been made poorer by their incompetence? I cann’t think of one can you? I can remember reading an article some years ago, it was a biography, and the person made a comment, which went along the lines of ‘ if you are looking for thieves rogues and vagabonds, look no further than this house(by which I think he means parliament) and the banks. This was in the 19th century. Say no more. And they still try to fiddle their expenses. Well I never.
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You are quite correct - the system was set up so that a bank could fail - the investors compensation scheme was there and could easily have sorted it.
The Americans did just that with Lehman Brothers and the mortgage providers Freddie Mac and Fannie Mae.
The result was less than two years of some disruption for the US.
In contrast - saving Gordon Browns “Super Regulator” by propping up the Banks with more and more taxpayers money put us into an economic decline that lasted a decade.