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The “Free” Market & the Banks

23 Nov

“This is what happens when you allow the market to run unchecked …”

NO, YOU MISS THE POINT ENTIRELY …. the market basically works, but governments DESTROYED the market in bailing out the banks. The EU destroyed the market in leading investors to think (rightly) that countries like Greece would be bailed out no matter what and therefore they could lend them money they couldn’t afford to repay.

Using TAXPAYERS’ money to rescue irresponsible private companies and/or bankrupt countries is NOT THE MARKET; it is the ANTITHESIS of the market. This is what should have happened:

– The banks should all have been allowed to collapse as private concerns.
– All directors should have been  made redundant (just like normal companies going bust) and given their wilful recklessness banned from ever working for a bank again
– The banks should then have been nationalised and deposits guaranteed.
– Shareholders should have lost everything (THAT’S THE MARKET – it would teach the bastards to be more careful next time and put the money in a safer place – under the bed perhaps).
– The govts should have run the banks till profitable and then resold them with strict conditions, including a modern version of the Steagall-Glass law – not rocket science; banks are a licence to print money anway except for the venal lunatics recently in charge.

No, none of that took place; the bank bailouts are now clearly a disaster, as many of us predicted they would be. Now we’re into an endless domino-effect black hole, and FEW of those responsible will carry the can.

And before anyone says “You can’t do that.”, let’s be clear: “YES, WE CAN”. We, the people, through the House of Commons, are SOVEREIGN.

THIS IS VERY GOOD!

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