to be slightly miffed at all the money being pumped into banks to help them recover from the credit crunch crisis.......................................

[mummypoppins]

which is no doubt coming from my hard earned tax bill when we know perfectly well that it will happen all over again.

Having always worked full time and been mega over cautious with debt and lifestyle etc....only just had a flat screen TV and every spare penny had always been applied to reduce our mortgage at the expense of new cars and flash holidays or even none at all.

Is it right that we should be propping them up at the expense of education and the health service

Discuss...........I have my tin hat on !

[memoo]

YABU cos if the banks go bust then we've all had it, not just the people who would lose savings/investments

[ivykaty44]

And you would prefer the banks went under? you want things to get worse for everyone?

[pigleto]

Yes it is galling. They don't deserve it and they have brought about the collapse through greed and incompetence and in some cases villany. However, if they are not bailed out we will all suffer, so they have us over a barrel. They need some serious policing from now on but unfortunately they know how to bend the govenment around their little fingers so I doubt if anything meaningful will get done.

[mummypoppins]

Quite. Pigleto but nothing we have seen so far indicates that there will be any policing and I fear we will be here again in say 25 years time.

[rebelmum1]

I agree it is pretty outrageous, they made money hand over fist, and through greed and incompetence are folding and we have to foot the bill. It's a lose lose scenario if you ask me. They should be putting the money back into the tax payers pocket so they can keep up the payments.

[daftpunk]

what would you suggest then? the banks all go under?

[mummypoppins]

But we should also be tightening up on what is lent to people. I have friends with mortgages that would make your toes curl.....never should have been allowed.

[mummypoppins]

daftpunk.............If I mis managed my business will someone injject a load of money into it for free ?

I employ 150 people so it would not be of an insignificant impact locally.

[rebelmum1]

The Gov should be loosening the tax burden and putting more money back in the tax payers pocket. Banks are not a certain investment and the treasury could lose a lot of money. It's a risky strategy.

[expatinscotland]

i think in exchange they should at least be barred from ripping off their customer with things like huge fees for going over o/d, using certain cashpoints and the like.

[TheCrackFox]

YABU. I don't want the entire economy to go down the pan. However, I do think some of these bankers should be sent to prison for the fraudulent way they have run their banks.

[Spidermama]

I agree it sends out a bad message to bankers and fund management types. Mess up, fail, lose people's money and you'll be bailed out by the tax payer.

These are the people with their obscene bonuses which already display arrogance and a cavalier attitude to other peoples money.

Perhaps we have to let the shit hit the fan in order for more sustainable, grown up solutions to emerge. Look at the Sussex town of Lewes for example which has recently developed its own currency.

[rebelmum1]

Even better mummypoppins if you grabbed and ran with your customers cash making quick wins and a bundle of cash then went bankrupt through your incompetence the Gov might bail you out..

[Peachy]

it's not just about that though is it? this is te pensions of people just likeyou, who have worked every day of their adut lives; savings schemes; etc etc

the bankers win whatever; if my memory serves me this morning the leader of HBOS got a £2million share option in Lloyds. Its Mr and Ms normal who will lose, and they also paid their taxes.

But of course lending should be tightened, I tink it has been by default now hasn't it?

[daftpunk]

er...banks inject tons of money into business's, if you mis-manage your business then that's too bad. the problem at the moment is world wide....yes some banks have been a bit reckless..but you can't just sit back and let them all go bust? that's crazy

[pippylongstockings]

I agree it does seem outrageous - but what is the alternative ?

Banks go bust - their savers loose all their money bar £35k.
Chaos as another bank or govt. has to buy out the mortgage book.

More unease in the banking sector - money wiped off shares.

Where do we put our money if it is all so unsafe.....

[rebelmum1]

What if the Gov bails out the banks then loses taxpayers money - it's higher risk if the country is bankrupt...

[rebelmum1]

who injects cash then?

[Spidermama]

At the moment those loons who have their cash in suitcases under the beds are the real winners. They'll be laughing all the way to the, um, suitcase under the bed.

[expatinscotland]

i think maybe what people find so bothersome is that many banks don't want government regulation but they're happy to take government/taxpayer money when the shit hits the fan.

i can't stand the wavering approach. either shit or get off the pot. either have it nannied to hell and protect monies as much as possible, even if it means profits aren't as great when times are good, or make it free market and if it tanks well isn't that about a bitch?

[MrsTittleMouse]

It really does seem a case of "heads I win, tails you lose" - when the banks were making money hand over fist then they didn't want the government to do anything, just leave them alone because the market was King. Now everything has gone pear-shaped and the banks go cap-in-hand to the government, and suddenly the government is supposed to intervene after all. What's worse is that even with all our hard-earned tax money, there isn't enough, so the government is borrowing like there's no tomorrow too. Which makes me wonder what happens when we need to pay that back.

Incidentally, when it's the regular man on the street that loses out from crappy banking practices (like Equitable Life) the government don't seem so keen to step in.

[wehaveallbeenthere]

Spidermama, the money in those suitcases won't be worth anything. In the states now, if you have a property that you own and you want to sell it...you can't without putting it under its worth because there are too many new houses ( and they are still building).
They are bailing out lenders but that just devalues monetarily. It's a real jam for everyone. I don't see an end to it either. Unless you have a lot of money...and I mean big money like several millions you are going to feel it one way or another. Those who are trying to save up are already feeling it.

[mummypoppins]

devaluing currency is the real big issue in my view.

Too much money in the system could have a terrible effect on inflation.

[Soapbox]

I don't think the banks are being 'given' money but rather that the Bank is lending to them because they have stopped lending to each other (which is what they normally do).

If Mummypoppins business needs a bank loan for example, or you need money for a mortgage and the bank can't raise enough money from savings, it needs to be able to borrow the money on short term basis. If it doesn't Mummypoppins business goes down the swanney or your mortgage doesn't get passed.

If there is not enough liquidity in the system, then all businesses potentially suffer, but the ones that are on the brink themselves suffer most.

The banks have to pay the money back - it isn't a gift!

[noonki]

YANBU to be miffed
I feel the same,

though I think it needs to be done, but should come with the following ties that the bank has to adhere to:

1.Change of O/d rates, and bank charges
2.no more lending 100% plus mortgages once we are in upturn again
3.any irresponsible actions by banks should be investigated and any illegal activity brought to court

1. suspension of all bonuses /golden handshakes