Jim Rogers on CNBC VID
The way to solve this problem is to let people go bankrupt," Rogers said
The current rescue plans, which will force governments to issue more debt, print money and flood the markets with liquidity, will flare up inflation after the crisis is over and will create worse problems, Rogers warned.
Finally someone with a bit of sanity!
We Are Facing an Inflation Holocaust: Jim Rogers - General * Europe * News * Story - CNBC.com
Quite possibly very true, but long term effects of allowing wholesale bankruptcy are unknown. No politician will ever say this out loud though.Originally Posted by politicsisrotten
Don't Bankrupt the Citizens.
Bankrupt the Banks.
Problem solved!
"Always do right. This will gratify some people and astonish the rest." Mark Twain
“When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.” Napoléon Bonaparte
Some great points.
I'd agree with him for the most part - insolvent banks should be allowed go bankrupt. Its crazy for Ireland to be propping up 6 banks - far better pick 1 or 2 banks that are essential to the running of the economy and country - nationalise them / trade capital for equity or whatever and let the others go bankrupt. There is absolutely no rational reason for propping up the smaller banks that are in dire straights because of their own lending policies.
When the banks go bankrupt, the effect will be immediate. Developers who cannot sell will be forced into liquidation, companies that cannot pay will be bankrupt. The effects will be harsh and painful but the end result will be a clear and level playing field for companies that took prudent risks and those who managed their capital and borrowings well. We'll come out the other end a hell of a lot faster.
We're only delaying the inevitable at the moment and hoping that harsh actions in other countries will somehow bail us out of having to do anything nasty. Its nuts. By propping up bankrupt banks, we're propping up bankrupt developers and companies and pro-longing our pain endlessly. But the good news is it can't go on forever. At some stage one of the support levels will give way.
Last edited by markeys; 10th October 2008 at 12:31 PM.
I think a lot of people feel this way, but dont say it. Many shy about saying it as they cant perdict what the consequences of it would be... WSC '29 again???
ah but thats taking the national interest into account markeys.
FF and co are thinking about themselves and their major donators in the form of said banks and the major builders who'll go to the wall when they have to pay off those loans those banks are rolling over.
viewed in that light its painfully predictable that the gov would do what its doing.
i agree by the way, i think the guarantee shouldve kicked in AFTER the one or two delinquint banks went bust. its the only way to put manners on the people involved. but as long as the major players here are cutting massive cheques for the big political parties it aint gonna happen.
Last edited by constitutionus; 10th October 2008 at 12:35 PM.
Nor should we help people who bough multiple properties at ridiculous prices on 'no interest' loans. For that matter - painful as it may be - people who bought homes they simply can't afford and are defaulting on payments should not be rescued with taxpayers money. I suspect there are plenty of people around the county living in homes they are no longer making payments on but are gambling they will get a couple of years free accommodation before the banks have the guts to move on them.
People facing difficult times (most home owners) who are making real efforts to pay their debts should be helped with some kind of temporary tax break on the interest portion of their mortgage payments. In this way people who bought their houses in the last few years will get the greatest benefit as most interest in paid in the early years of a mortgage. This tax break should only apply to existing mortgages so as not to inflate house prices again.
Clicking an ad a day keeps Politics.ie in business.
Before advocating letting our banks go under people should consider the following:
Imagine if at the end of this month your wages don't appear in your bank account, and when you go to your usual ATM, it switched off, like every other ATM in the country.
Now imagine that everyone in the country is experiencing the same thing.
What do you suppose would happen?
A demagogue is someone who will preach doctrines he knows to be untrue to men he knows to be idiots.
With individuals you really have to look at each case and overall levels of debt. It is not just mortgages. Often consolidation of debt would save them money and some restructuring of the loan may be what is needed. Forcing people out of their homes and dumping more property onto the market is not be the most clever thing to do. Vandalism can be a real problem and the legal costs considerable. The only people who benifit are Repo men, the legal professions and youths striping the copper piping. Keep as many people as possible in their homes.
With regards banks, several need to go into receivership and the share and bond holders take a loss. The assets can be sold off or another bank can take over and the share holders may receive some residual value.
The problem is we have this wretched guarantee which has welded our government to the banks so they are like Siamese twins. We need to free that relationship up a bit.
In many ways we are concentrating too much time and potentially money at the wrong end of this problem.
Last edited by Squire Allworthy; 10th October 2008 at 12:58 PM.
GB TWO banks going under does not equate to every ATM in the country going off.
get a grip.
but lets say it did, there WAS a time not all that long ago we didnt HAVE ATMs in the country, we'd be back to the good ol days of getting your wage in an envelope. and last time i checked the post offic isnt going anywhere so you even have a place to stuff it
Last edited by constitutionus; 10th October 2008 at 12:51 PM.
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