Comments on: Tax the banks or change the Regulators? http://johnredwoodsdiary.com/2009/08/27/tax-the-banks-or-change-the-regulators/ Incisive and topical campaigns and commentary on today's issues and tomorrow's problems Thu, 09 Feb 2012 20:05:58 +0000 hourly 1 By: Stuart Fairney http://johnredwoodsdiary.com/2009/08/27/tax-the-banks-or-change-the-regulators/#comment-21595 Stuart Fairney Sun, 30 Aug 2009 17:44:37 +0000 http://www.johnredwoodsdiary.com/?p=4368#comment-21595 I believe such ideas underpinned the Russian revolution whereby the capitalists and financiers were just middle men stealing from the workers and if only they could be gotten rid of, a workers paradise would ensue. How'd that work out again? Do you honestly think financial dealing generates nothing for society? Where do you think the companies you rely on every day for everything you need get their funding to say nothing of your mortgage? Do you honestly think the banks have not been net taxpayers in the last 12 years? Really? I would agree bailouts were a hideous mistake, Mr Darling and Mr Cable have saddled us with enormous, open ended debts for years to come but in order to understand sub-prime you need to look at prime cause and not fall back on rhetoric, look at the federally mandated loans to the sub-prime market by Fannie Mae and Freddie Mac, look at the communities reinvestment act. This was the financial vandalism in pursuit of social goals. Again, if we drive banks away we make ourselves poorer. I believe such ideas underpinned the Russian revolution whereby the capitalists and financiers were just middle men stealing from the workers and if only they could be gotten rid of, a workers paradise would ensue. How’d that work out again?

Do you honestly think financial dealing generates nothing for society? Where do you think the companies you rely on every day for everything you need get their funding to say nothing of your mortgage?

Do you honestly think the banks have not been net taxpayers in the last 12 years? Really?

I would agree bailouts were a hideous mistake, Mr Darling and Mr Cable have saddled us with enormous, open ended debts for years to come but in order to understand sub-prime you need to look at prime cause and not fall back on rhetoric, look at the federally mandated loans to the sub-prime market by Fannie Mae and Freddie Mac, look at the communities reinvestment act. This was the financial vandalism in pursuit of social goals.

Again, if we drive banks away we make ourselves poorer.

]]> By: Bazman http://johnredwoodsdiary.com/2009/08/27/tax-the-banks-or-change-the-regulators/#comment-21594 Bazman Sun, 30 Aug 2009 16:14:21 +0000 http://www.johnredwoodsdiary.com/?p=4368#comment-21594 Much of this financial industry is built on sand as the last few months have proved. Now they are a liability and not an asset and a lot of financial dealing is little more than a scam generating nothing for society or the taxpayer.They have fell out of the race to be bailed out by the taxpayer and want to carry on as if nothing happened. Causing a mess then providing the means to get out of it to start another one using the same self serving people. Anyone can see this and so any government should be calling their bluff and the bluff of the rich in general. They are not just here for financial reasons either. This idea is just to simple. Much of this financial industry is built on sand as the last few months have proved. Now they are a liability and not an asset and a lot of financial dealing is little more than a scam generating nothing for society or the taxpayer.They have fell out of the race to be bailed out by the taxpayer and want to carry on as if nothing happened. Causing a mess then providing the means to get out of it to start another one using the same self serving people.
Anyone can see this and so any government should be calling their bluff and the bluff of the rich in general. They are not just here for financial reasons either. This idea is just to simple.

]]> By: Stuart Fairney http://johnredwoodsdiary.com/2009/08/27/tax-the-banks-or-change-the-regulators/#comment-21593 Stuart Fairney Sun, 30 Aug 2009 10:46:39 +0000 http://www.johnredwoodsdiary.com/?p=4368#comment-21593 You seem to be making my point for me, are you agreeing? It's not a bluff, they could very easily leave and as our economy is based on financial services not manufacturing it would be a DISASTER if banking went offshore. This seems so obvious as not to require further explanation but anyway ~ the loss of corporate tax revenues ~ the loss of income tax revenues ~ the immediate job losses amongst non-core staff ~ the significant knock-on effect of not having wealthy high spending people in the UK along with newly unemployed middle ranking people You seem to be making my point for me, are you agreeing?

It’s not a bluff, they could very easily leave and as our economy is based on financial services not manufacturing it would be a DISASTER if banking went offshore. This seems so obvious as not to require further explanation but anyway

~ the loss of corporate tax revenues
~ the loss of income tax revenues
~ the immediate job losses amongst non-core staff
~ the significant knock-on effect of not having wealthy high spending people in the UK along with newly unemployed middle ranking people

]]> By: Bazman http://johnredwoodsdiary.com/2009/08/27/tax-the-banks-or-change-the-regulators/#comment-21592 Bazman Sat, 29 Aug 2009 17:18:31 +0000 http://www.johnredwoodsdiary.com/?p=4368#comment-21592 So why run a bank from and live in London? Lets think and then call their bluff. So why run a bank from and live in London? Lets think and then call their bluff.

]]> By: Lola http://johnredwoodsdiary.com/2009/08/27/tax-the-banks-or-change-the-regulators/#comment-21591 Lola Fri, 28 Aug 2009 21:33:17 +0000 http://www.johnredwoodsdiary.com/?p=4368#comment-21591 It is an absurd idea. The reason that the banks get away with paying out all this dosh is that they are cartel supplier of a monopoly product. The answer is very simple break up the banks, especially the state banks forthwith and get a government into power in short order that will run sound money. It is an absurd idea.

The reason that the banks get away with paying out all this dosh is that they are cartel supplier of a monopoly product. The answer is very simple break up the banks, especially the state banks forthwith and get a government into power in short order that will run sound money.

]]> By: terry mechan http://johnredwoodsdiary.com/2009/08/27/tax-the-banks-or-change-the-regulators/#comment-21590 terry mechan Thu, 27 Aug 2009 19:53:40 +0000 http://www.johnredwoodsdiary.com/?p=4368#comment-21590 Turner's is a first class idea which I do not expect a right winger like John Redwood to support. Are we going to continue to allow a comparatively few individuals who, for whatever reason, have got themselves into a unique employment position to continue to cull a huge amount of money for themselves while the majority of their working peers in more productive working environments cannot approach anything like the vast sums the leaders in financial institutions pay themselves. The banking industry and its management have almost decimated the world's financial system, yet they think they can get "back to the races" as though nothing has happened. Many are lucky they are still in employment and that includes those who are not part of the governments rescue scheme but who have benefited from the "environment" created by the Government's rescue packages and proposals. It's a good job this is peace time. In all-out war, someone like Lord Beaverbrook would have sacked the lot immediately after the crash and replaced them with new individuals. Governments, of whatever hue, need to toughen up and stop letting vested interests in the financial industry run the world for their own benefit. It’s easy to make money from money; it’s not rocket science. You just have to be competent and be in the right place at the right time It’s not so easy to find a cure cancer, create and run new industries to alleviate climate change or look after the sick and the old. Time to tax the extremely wealthy and redistribute the excess downwards The banker’s have had their day in the sun. It’s time to move them on. Reply Lord Turner proposes taxing bank profits. Yet the FSA requires banks to make more profit to build their reserves so they can lend money again to business. I don't think you have understood the Turner idea, let alone its absurdity. It would not control the large bonuses that anger you. Turner’s is a first class idea which I do not expect a right winger like John Redwood to support.

Are we going to continue to allow a comparatively few individuals who, for whatever reason, have got themselves into a unique employment position to continue to cull a huge amount of money for themselves while the majority of their working peers in more productive working environments cannot approach anything like the vast sums the leaders in financial institutions pay themselves.

The banking industry and its management have almost decimated the world’s financial system, yet they think they can get “back to the races” as though nothing has happened.

Many are lucky they are still in employment and that includes those who are not part of the governments rescue scheme but who have benefited from the “environment” created by the Government’s rescue packages and proposals.

It’s a good job this is peace time.

In all-out war, someone like Lord Beaverbrook would have sacked the lot immediately after the crash and replaced them with new individuals.

Governments, of whatever hue, need to toughen up and stop letting vested interests in the financial industry run the world for their own benefit.

It’s easy to make money from money; it’s not rocket science.

You just have to be competent and be in the right place at the right time

It’s not so easy to find a cure cancer, create and run new industries to alleviate climate change or look after the sick and the old.

Time to tax the extremely wealthy and redistribute the excess downwards

The banker’s have had their day in the sun.

It’s time to move them on.

Reply Lord Turner proposes taxing bank profits. Yet the FSA requires banks to make more profit to build their reserves so they can lend money again to business. I don’t think you have understood the Turner idea, let alone its absurdity. It would not control the large bonuses that anger you.

]]> By: Brian Tomkinson http://johnredwoodsdiary.com/2009/08/27/tax-the-banks-or-change-the-regulators/#comment-21589 Brian Tomkinson Thu, 27 Aug 2009 18:57:53 +0000 http://www.johnredwoodsdiary.com/?p=4368#comment-21589 I should like to see you given the opportunity to sort out this whole banking fiasco. I should like to see you given the opportunity to sort out this whole banking fiasco.

]]> By: Lola http://johnredwoodsdiary.com/2009/08/27/tax-the-banks-or-change-the-regulators/#comment-21588 Lola Thu, 27 Aug 2009 18:22:12 +0000 http://www.johnredwoodsdiary.com/?p=4368#comment-21588 Perhaps now people will start to realise just how totally out of control, arrogant and useless the FSA management is. But like every failed totalitarian state bureaucracy, having lost its credibility all it can now do is to, metephorically, shoot people. I have spoken with FSA people and colleagues have spoken with their senior management. All they now appear to be engaged in is (i) reputation saving and (ii) sorting out the next sinecure to be filled at our expense. Perhaps now people will start to realise just how totally out of control, arrogant and useless the FSA management is. But like every failed totalitarian state bureaucracy, having lost its credibility all it can now do is to, metephorically, shoot people.

I have spoken with FSA people and colleagues have spoken with their senior management. All they now appear to be engaged in is (i) reputation saving and (ii) sorting out the next sinecure to be filled at our expense.

]]> By: Mike Stallard http://johnredwoodsdiary.com/2009/08/27/tax-the-banks-or-change-the-regulators/#comment-21587 Mike Stallard Thu, 27 Aug 2009 16:56:14 +0000 http://www.johnredwoodsdiary.com/?p=4368#comment-21587 Allow me to remind you of your own thoughts: 1. We cannot afford to guarantee the banks any more. 2. Nationally controlled banks that are too big to fail should be broken up and carefully and judicially sold immediately, especially the foreign profitable bits. The two other questions that seem to have slipped casually below the horizon are these: 1. What about the enormous bad debts based on the fiasco of lending to people who could never afford to repay the money? These have been hidden so carefully that nobody even knows which banks have the debts and the banks themselves haven't even said how much bad debt they are hiding. There seems, too, to be no attempt to find out. 2. The unbelievably large government debt which is gulping down huge draughts of newly printed money, is monopolising the money supply and preventing the banks lending to businesses. Allow me to remind you of your own thoughts:
1. We cannot afford to guarantee the banks any more.
2. Nationally controlled banks that are too big to fail should be broken up and carefully and judicially sold immediately, especially the foreign profitable bits.

The two other questions that seem to have slipped casually below the horizon are these:
1. What about the enormous bad debts based on the fiasco of lending to people who could never afford to repay the money? These have been hidden so carefully that nobody even knows which banks have the debts and the banks themselves haven’t even said how much bad debt they are hiding. There seems, too, to be no attempt to find out.
2. The unbelievably large government debt which is gulping down huge draughts of newly printed money, is monopolising the money supply and preventing the banks lending to businesses.

]]> By: Adrian Peirson http://johnredwoodsdiary.com/2009/08/27/tax-the-banks-or-change-the-regulators/#comment-21586 Adrian Peirson Thu, 27 Aug 2009 16:32:42 +0000 http://www.johnredwoodsdiary.com/?p=4368#comment-21586 In my view, the banks should have been allowed to fail, peoples debts shoudl have been writen off, yes credit card debt, mortgages, car loans, business loans, the whole lot. People wold have had money then, they would have gone shopping so stimulating the economy, new Banks would have sprung up in their place, hopefully mindfull of what happened to their predescesors. Oh and we need our fishing grounds back, our farming freed from Red tape so we can feed ourselves, we need British Car and shipbuilding and electronics back. It wont happen under the current Regime because all of this is by design, the New World Order is destroying Western civilisation. http://www.infowars.com In my view, the banks should have been allowed to fail, peoples debts shoudl have been writen off, yes credit card debt, mortgages, car loans, business loans, the whole lot.
People wold have had money then, they would have gone shopping so stimulating the economy, new Banks would have sprung up in their place, hopefully mindfull of what happened to their predescesors.
Oh and we need our fishing grounds back, our farming freed from Red tape so we can feed ourselves, we need British Car and shipbuilding and electronics back.
It wont happen under the current Regime because all of this is by design, the New World Order is destroying Western civilisation.

http://www.infowars.com

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