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AIBU?

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to think that pouring money into banks is not going to grow our economy?

1 reply

19271each · 03/07/2012 15:12

Each man, woman and child in Britain has already handed over £19,271 to the banks. This is four times what each person in Iceland handed over, and their economy has recovered.

Loose monetary policy (QE) has not and will not give us economic growth. All QE does is let the banks clean out their toxic debts. With our money. The toxic (and incidentally non-UK) debt was acquired through their incompetence and an uber sense of entitlement that the down side would be underwritten by you and me. So the banks go shopping, and we pay for their incompetence. And keep paying.

Is it OK for the Bank of England to be pumping in our money? Don't they realise they "just can't go on like this"? Is it just incompetent and ineffective, or immoral? Or are we happy that the young, old, well really 90% of the population have no say whatsoever, as trillions are handed over to clean out the books, but not the poisonous people, in these places?

Quite some time ago Bob Diamond, then leader of the bank that didn't need a bailout, but would have collapsed if the others weren't bailed out, told us to move on from blaming and instead look to the banks to rebuild the economy. A trillion more pounds pumped in, and still no building.

When even the Bank of International Settlements has come out to say QE is not working in the UK, will Mervyn King vote again this month to pump more in? Or is the world full of people who think QE helping the banks' assets is fine? At the expense of UK plc.

OP posts:
MrsTerryPratchett · 03/07/2012 15:21

If we were going to give the banks money, I still don't understand why it wasn't done through people's mortgages. If someone who was losing their home was given 19K, they could then give it to their bank who wouldn't then evict them. I know nothing about fiscal policy, however. I know that printing extra money is what Third World countries and we do.

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