This is NOT a swipe at the Labour Party, it is too important a subject for political chicanery and God knows we have to end Tory mismanagement BUT what Ed said about the banks was just plain irresponsible. I paraphrase:
“It was right to bail out the banks in 2007. It was not about the banks, it was about ordinary people’s savings. What was going to happen to ordinary people’s savings? I think banks are a good thing and not a bad thing.
“It was right to bail out the banks . . . There was absolutely nothing “right” about it.
First: When any business carries out malpractice and comes unstuck it should go bust. It provides the best deterrent to others. It would have been painful for a year or two BUT out of the ashes we could have built a new banking system that supports rather than controls Society. Supporting the banks now makes them feel invulnerable and gives them the confidence to carry on being abusive, which is exactly what they are doing and so, after 8 years, the pain and abuse continue.
Second: It was taxpayer’s money, paid by people on the understanding it is used for Social infrastructures and the running of the country. If you told people it would be made available for commercial failings they would not pay.
Third: This act of gross irresponsibility, representing the greatest theft of public money in the history of our species, has undermined the trust of the people in their elected representatives and the political system.
Fourth: The bank failure in 2007 was not an ‘Act of God’ that nobody foresaw but a failure through premeditated gambling because there were more profits from it than conventional banking. Nobody has gone to jail and the regulatory regime that allowed it to happen has changed little since, allowing banks to continue their irresponsibilities, which will bring about another and far more devastating collapse.
Fifth: It has created a precedent of immeasurable proportions which can be used to justify the use and abuse of public money in event of the irresponsible failure of ANY commercial venture by large organisations “Too Big To Fail” (or Nail).
Sixth: The cost to taxpayers has not ended with loss of tax money but continues today in loss of public services and sale, at knock down prices, of their public utilities, unemployment and zero hours jobs because of a supposed ‘shaky’ economy.
“It was not about the banks, it was about ordinary people’s savings. What was going to happen to ordinary people’s savings?” . . . The same thing that happened to the banks. They could be bailed out!
First: The trillions that have been printed since 2008 and given to the banks could quite as easily have been given to savers PLUS a bonus for their short inconvenience. If it can be done for banks it can also be done for people, or am I missing something? Anything left over would provide a first class health service and much more, given the volumes of money we are talking about!
Second: Ordinary people’s savings have taken a severe caning since, with derisory interest rates for many who are dependent on that income to survive.
Third: What is more their noses are being rubbed in it as banks are fined, what to them is petty cash and offset against tax which those same savers have to contribute towards, allowing them to return to obscenely high rates of return in comparison with what they are making available to savers.
Fourth: Those savers have their money in banks and building societies, many of whom are now very wary about lending it out again to help young would be homebuyers or small businesses which, from memory, is why they are there.
Fifth: No less a person than the governor of the Bank of England has assured taxpayers that in event of another banking collapse their taxes will not be touched, as the creditors of the banks will have to pay this time. Ordinary people’s savings are what he is talking about because, as a saver with a bank or any other financial institution, you are a creditor. This time the people will get well and truly screwed, not as taxpayers but as savers!
“I think banks are a good thing and not a bad thing.”
Private Banks: Properly regulated and held to account – Possibly. Public Banks: Definitely!
I repeat, I am apolitical and not popping at Labour but it is worrying when any political leader makes such irresponsible comments that have simply not been thought through. It is doing harm to politics, harm to the good people who go into politics to promote positive change and immeasurable harm to any form of reconciliation with voters in reducing the creditability gap between elected and electors.
Finally to Russell. Why, why, why did you not confront him with TTIP? It is the biggest potential threat to democracy and our way of life. It will neuter the power of our elected representatives and our vote in the process. You do carry the sentiments and support of a lot of people. Power to you Russell . . . but you’re no Jeremy Paxman.
Until the next time
Thinking from his Book: Global Magna Carta. Returning Power to the 99% . . . If They Want It! By J T Coombes