What Are You Doing Right Now? (166 Viewers)

[Hængebøffer]

Yeah, instead of giving the banks money, governments should let them go bankrupt and give money to the people instead.

 

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[Bjerknes]

Why do failed institutions deserve taxpayer money? Or any money?

 

[Zacheryah]

I see, interesting view

In europe the idea is brewing, to protect minimum risk savings, but people who take risks and go for potentially large profits, could lose theirs if the bank gets into trouble.

Not sure if that would ever become something, and what the actual impact would be.

 

[ZoSo]

They key thing is regulation, look at Australia's banks.

 

[Bjerknes]

I see, interesting view

In europe the idea is brewing, to protect minimum risk savings, but people who take risks and go for potentially large profits, could lose theirs if the bank gets into trouble.

Not sure if that would ever become something, and what the actual impact would be.

Risk and return. That's the whole name of the game. You risk capital by investing in a poor bank, you lose that capital. It shouldn't be any other way. Play it safe by using mutual funds and keeping assets in other currencies or commodities.

They key thing is regulation, look at Australia's banks.

I don't know anything about Aussie banks, but the Federal Reserve regulates the Wall Street banks in the states and they butt fuuuuck everyone. So does Congress and the SEC, nothing happens. In reality, regulation equals more banksterscum in government doing the regulating.

 

[Zacheryah]

Wel, from what i hear, i kinda liked it. protect the good housefather who isnt taking risks, and let big stake gamblers think twice.

 

[ZoSo]

They should at least be following Basel II standards.

 

[Bjerknes]

Savers should always be protected. They create the capital for investment. But you can't punish people for taking risks and making a profit.

 

[Zacheryah]

Not punish, but face consequences if their attempt at massive short term profit fails

 

[Bjerknes]

Not punish, but face consequences if their attempt at massive short term profit fails

I find that idiotic. Short term profit opportunities always mean high risk investment vehicles, so you can lose everything as it is. I just don't understand how government is going to be able to create a better marketplace by punishing risk takers. You want people to take risk in capital investment. Otherwise, you don't expand an economy!

 

[ZoSo]

Not punish, but face consequences if their attempt at massive short term profit fails

That's their own fault for accepting the unsystematic risk...

 

[swag]

As long as we don't go the way of 90-year-old farts whining about returning the gold standard.

 

[Zacheryah]

I find that idiotic. Short term profit opportunities always mean high risk investment vehicles, so you can lose everything as it is. I just don't understand how government is going to be able to create a better marketplace by punishing risk takers. You want people to take risk in capital investment. Otherwise, you don't expand an economy!

Allright but then how do you stop banks from taking these so called "crap credits" in absurd numbers, and people investing in those ?
(horrible dutch translations, it meant a bunch of credits given to those who likely cannot repay them in the agreed time. basically CDO's. 2 belgian banks had billions of those. then faced liquidity problems )

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As long as we don't go the way of 90-year-old farts whining about returning the gold standard.

Well, when you think a crisis is comming, its allways best to invest in gold, cause of its constand value.

other then that, please no

 

[ZoSo]

The banks should have adequate capital against that.

 

[Bjerknes]

As long as we don't go the way of 90-year-old farts whining about returning the gold standard.

I know more young people saying that than retired folks. Most of the latter love the fiat shiit since that is how their retirement accounts flourished. Now my generation will pay for the debt negligence.

 

[Zacheryah]

The banks should have adequate capital against that.

exactly "should have"

here, they didnt, and without goverment funding with tax payer money, they would have gone under.

So how does one force a bank not to take such disgusting risks ? How does one force a bank to keep the minimum risk savings "safe" ?


Seriously, the more i read, the more i hate banks

 

[ZoSo]

exactly "should have"

here, they didnt, and without goverment funding with tax payer money, they would have gone under.

So how does one force a bank not to take such disgusting risks ? How does one force a bank to keep the minimum risk savings "safe" ?


Seriously, the more i read, the more i hate banks

Fine directors for not meeting capital standards??

 

[Zacheryah]

the board protects their directors. If a goverment fine's a bank, the bank will transfer the cost down to their customers.

 

[GordoDeCentral]

you just cant fix DNA, parceiro

 

[ZoSo]

the board protects their directors. If a goverment fine's a bank, the bank will transfer the cost down to their customers.

Prison then.