We are getting a raw deal. It seems that the banks have succeeded in socialising their bad debt and poor management ability on the backs of ordinary working people and in the process they have now thrown us head long into spiralling unemployment, rising food and utility costs, along with a future of uncertainty, not seen since the great depression of 1929. All this has been caused through the banks and the lending institute’s insatiable appetite for profit and the lack of control within their industry on their lending and borrowing policies.
Anyone with half a brain would have seen that the banks have been throwing money at just about anyone who wanted to borrow money for a mortgage or loan. They have lent money in an irresponsible manner without proper financial checks on the affordability. They increased credit card limits at their own discretion, without bothering to assess the person’s ability to repay the debt along with their other commitments.
If the ordinary man or women in the street were to run their business recklessly and it failed, then the law of capitalism would have stepped in and bankruptcy would have followed. Governments around the world would not have been thrown into turmoil and chaos by having to inject billions of pounds to prop up their money markets and the President of America would not have had to ask Congress for $700 billion dollars to buy up the banks’ mistakes i.e. their toxic mortgages and loans – who really knows what the true cost of this problem is?
The cost of this global financial meltdown will be hundreds, if not thousands of billions of pounds, and it will take many years to recover the excesses created by unregulated banking industry speculation. Paying off this debt will also take us further away from healthcare reforms, funding for our education system, more affordable housing, reduced inflation, and affordable mortgages; as government money is channelled into supporting the banking industry.
After the horse has bolted – Gordon Brown, the Prime Minister and ex-Chancellor, (who incidentally sold off the UK gold deposits and who has spent the last eleven years in the government as the Chancellor looking after the finances of Britain) informs us that we are in the “age of responsibility”. While the current finance problems are not of Mr. Brown’s making, the legislation of the finance world within the United Kingdom is. As ex-chancellor he is, in my opinion, ultimately responsible for his role in failing to regulate the banking industry correctly.
Had all governments around the world regulated their banking industries in the correct manner and not left the Banking Lords to their own self-regulation, we would all have borrowed what we could afford and this would have been the real test of “responsibility” for any government or bank. For the moment let’s baton down the hatch and ride this storm out. Hopefully the world can learn a lesson since we have come so close to the total collapse of capitalism. Capitalism is a complicated machine that does not work well when not controlled and regulated properly.
This article is not meant to be political or about having a swipe at George.W.Bush or Gordon Brown, however both men will retire or be voted out of office one day. They will then expect to earn millions from their biography and speeches of their time in high office. Both men are responsible for their actions during their terms in office, maybe they should have epitaphs that reads ‘I nearly brought capitalism to its knees’.
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