Nowun Till snorts around the bank directors tax payers trough

Great news for all of us in the UK. Our banks are safe.... erm???

Lets try that one more time... Great news Bank Executives bonuses guaranteed by tax payers.

The announcement that the UK Government is going to purchase shares in a few banks and insist the money is lent out is being viewed by some as a wonderful idea.

Lets look at what got us into the mire here... Lending and over borrowing... So to get out of it... Borrow more. As we are heading into a recession, the UK Government has itself announced 3,000 people being sacked today, how are all these redundant workers going to pay for these loans? To suggest the banks need the money to lend to each other is any kind of solution, is to ignore the issue of what happened this time round.

Even worse, is the Directors trough. It may have escaped the myopic vision of some people, but executives are paid bonuses, in many ways, including .... share price.... Tax payers buying shares in failing companies funnily enough will bolster share prices and the poor old executives will be forced to accept their bonuses for such wonderful performance.

I do however agree that any bank which has managed to get tax payers to clear their debts and bolster their assets should be rewarding the directors with huge bonuses. It is a wonderful learning exercise for those of us not running banks... Create a business model which fails and is too complicated for politicians to understand, insist the world will end if your business goes bust and hey, your debts are gone and the taxpayers bolster your share-price.

Why don't politicians leave what they don't understand alone and cease listening to spin doctors, the failing banks have insisted the world is about to end and those PR guys have done a great job in creating a smoke screen behind which politicians have panicked.

The simple fact remains, in the UK and US there remain a significant number of banks, who are doing very nicely and very capable of buying out any ailing and failing banks. The investor guarantee schemes fulfil requirements for 98% of the population.


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