Saturday, May 02, 2009

Banking Crisis: dealing with the failure of the UK banks

Re: House of Commons Treasury Committee
Banking Crisis: dealing with the failure of the UK banks

While the bankers created this mess and have got away with it due to the poor taxpayers (some should be in jail for fraud), Governments have let regulation slacken to allow it to happen. The public have naturally lapped up the easy credit of recent years, building up trouble for themselves as they have got deeper in debt. House prices exploded far above reasonable levels, while governments egg people on to buy their own homes, when in many cases it would have been far better to rent, as in other countries. Few own their own homes – most are really owned by the banks and building societies who gave the mortgages – a lifetime of servitude trying to pay it off!

Hopefully one benefit to come from this mess might be more people trying to live within their means, rather than spend now and pay later! It is also surprising how many businesses have also spent beyond their means by borrowing – and are now feeling the pinch. What would be really useful is if the Government created a People’s Bank run on ethical lines – and if the competition hit the established banks it would be their loss. Let them pay off their unethical debts or close. The People’s Bank would be starting with a clean sheet and build from there!

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