Monday, 27 April 2009

Ownership comes with Responsibiliy


Bail Out, but to completion!

More and more articles and reports are accumulating: unemployment bankruptcies and insolvencies on the rise; companies in reverse, or closing down, many laying people off: the common denominator; lack of liquidity in the markets.

The government claims, it bailed out the banks; to me it is obvious that this solution has only been half baked; if that. There is the ongoing discussion about the installation of one or more "Bad Banks" - after all the months of pouring public money into the banks, the same politicians tell us we will need "at least"

£606bn of new debt over four years but they still refuse to think the disaster to its end and go the whole hog.

Clearly, this is putting at risk what was invested so far! Tax money that was used to "bail out" the banks (not in full as we have learned), this same money in the hands of the polluters is now denied to play its role - and this is not to say that irresponsible lending has to re-start. No, it is responsible lending that is now needed to help the economy recover from this bank crunch; the crunched rather want it to be a global economic crisis in order to distract from their own failures. This must be stopped.

So, we must go the full way, now, bail them out to completion, now!
Install this "Bad Bank" and put things straight. Why not call it what it is though, the "Good Bank" as it is the bad ones that desperately need the good one.

Otherwise this investment into owning the banks will only become toxic, bad debts.

Carpe diem!


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