Should the government be encouraging the banks to lend homebuyers/big businesses yet more money that the tax payer will have to repay if it all goes belly up or is it time to have a rethink?

[scrooged]

I am (unreasonably probably) sick that the taxpayer is yet again to have our taxes backing the banks who screwed up because of their own greed. I have had enough.
Any ideas what else could be done? I'm in favour of a government depatrment taking over the banks, mortgages/loans etc would be repaid as normal to the banks but they would all be not for profit or profits put into health/schools/social housing. I'm sick of them being bailed out and their staff stil getting huge bonuses.

What do you think?

I agree. I just can't believe that bankers are still earning mega bucks when the whole system that supports them is relying on the taxpayer.

I know the theory is 'too big to fail', but if the banks are now effectively public sector organisations, can't they have similar salaries?

That's a good idea.

If I went into my local twatwest tomorrow, what do you think the chances of them refunding the charges on my account are? After all, I am now a shareholder.

I can't believe the complicity of the media in this. Are they completely owned by big finance and therefore saying so little about how unacceptable it is?

I hate the way that the government seem to just think that if they keep not doing anything, eventually it will be forgotten and blow over.

The Tories never really had my respect, but if they had, they would have lost it again on their failure to challenge the government on this.

It's absolutely STUPID.

I'm sick of the 'taxpayer' being touted as the great saviour - these are our kids Gordon Brown is messing with. Well, the ones that aren't rich enough to simply sod off and go ex pat.

But, then, I suppose he won't care, cos he and his kids will be living in Jersey.

Something needs to be done. The government can't just keep doing this. It's beyond a joke. They are propping up debt with more debt, I can't see how it's sustainable. It's got to be paid back eventually. It's like a house of playing cards that's getting bigger and bigger, if one of them goes they will all come falling down. This is going to be an absolute disaster!

It's not sustainable... and you would think a man who purported to be a finance minister for 10 years would know that.

Did he really think that the economy going up and up was somehow linked to HIM being in office?

Houseprices are unsustainable. The fact that we've outsourced pretty much every single one of our neccesities is unsustainable. The fact that we've closed and neglected indutries we MIGHT actually need is unsustainable and the fact that we are relying on ministers to TALK us out of this is f'ing stupid.

NO-one believes it. No-one.

What gets me is the government focusing on getting the banks to lend more money when it was excessive lending that got us here. Surely we should be learning from all this and encouraging saving and applauding responsible lending? Its like they want to turn the clock back 5 years but don't see how that behaviour led to the crisis. The ridiculous VAT cut really angered me, cost a fortune, didn't help anyone as far as I could see.

Sterling has already plummeted, ripping off anyone relying on the pound abroad.

Savers are getting a hammering, penalising people who have bothered to save for their retirement.

It isn't just the future generations that are being ripped off, although of course they are.

Imagine saying to your kids "In order to maintain our lifestyle, we are borrowing based on your future earnings???"

That is how this feels to me. Sadly, he seems to have second guessed our stupidity correctly.

The VAT cut was to help businesses and to encourage us to spend . All the government ever encourage us to do is spend, even if we don't have money they want us to get into debt and spend. It's madness! Savers have been penalised for many years, the interest rates have been low meaning the interest on any savings has been low. I hate the encouragement for us to spend or get into debt so we can spend. It's wreckless! All this spending isn't helping anyone.

I really feel for people living abroad getting paid sterling at the moment. Hopefully though it will help out manufacturing (what's left of it) Inflation will go up soon because they will start printing more money, then they will have to up interest rates and THEN borrowing will drop and saving will become more attractive. It will all right itself, the question is how long will it take?

I doubt anyone will buy it. People aren't going to take out stupid mortgages at the mo, because everyone is sure that, after this is all done and dusted, house prices are going to be 30-50% lower than they currently are.

Nothing they do is going to change the average person's mindset so all this money chucking (IMHO) is money down a very long, very dark and very cavernous black hole...

But seriously has 2% off goods really made you think 'oh that was a bit expensive at £100 but now its only £98 I'll buy it' fecking stupid

I'm sick of feeling so powerless. I don't think this government listens to what us mere taxpayers want. They are too busy pandering the needs of the big companies. Labour have gone seriously wrong somewhere. The taxpayers are being screwed over and over again and no one's doing anything to stop it.

The shops still make a huge profit if the 2% or whatever is taken off. We've been taken for a ride and overcharged for so much over the years. The shops now sell at reduced prices to get our money but why sell at high prices if they can make a profit at reduces prices? Greed. Pure and simple.

Hmm I think political thinking has moved on from this idea (very last week). There is talk now of taxing savings to encourage consumers not to keep positive balances - will fuck me up royally if it happens - because if you are penalised for saving you are more likely to go out and spend your money and keep it in circulation which will help the economy long term.

Having said, in some senses, are we not just sort of reverting to nationalised ownership of assets, except instead of owning the gas board, we now own the post office and the bank?

Perhaps if people were prepared to only spend as much as they have or can save we could find a way out.