posted on Apr, 20 2008 @ 09:00 AM
From what I've read it's a proposal that has a lot of merit
(in a climate where the banks have become adamant that they are going to act like frightened OTT children despite them having been responsible almost
entirely and brought the current difficulties upon themselves).
The root of the problem seems to me to be an over-reliance on money to make money.
I'm not disputing that it can but the lengths some of these guys have gone to too and the risks they have taken to try and extract profit beggars
belief.......of course higher risk usually demands higher rewards but surely at some point the level of exposure (to that risk) eventually crosses
One can only wonder what happened to the days of banking management understanding what they own staff are doing (which is a significant part of this
For anyone who wants to understand what has been going on (and that we are far from 'out of the woods' yet) I can recommend this (very watchable)
financial documentary -
Dispatches: How the Banks Bet your Money
(Ch.4) first shown on 18th Feb 2008.
It can be (legally & safely) downloaded from 'The Pirate Bay' on bittorrent here -
link to Dispatches torrent
It'll make your teeth curl.
Personally I think a lot of this ends when we finally return to some sanity about our housing policies.
For as long as too many people are determined to view their house as a vehicle for quickly generating money and not a home to live in long term then
those people are doomed to repeat the cycle of housing booms & busts.
It's a damned shame for those caught in the crossfire but it has to be said that (following the experience of the last housing bust in the early
1990s) the current troubles are nothing like as bad.
It's also true that this time around the current UK housing slowdown
(IMO we are far from any general credible actual 'bust' in the market
as a whole as yet) has come entirely from the activities of the private financial 'industry' and the activities of private borrowers and not as a
direct result of Gov interest rate policy.