Quote:
Originally Posted by WillowTheWhisp
I don't think it's as simple as that. This isn't just a UK problem. It's international and it's when banks DON'T loan money that we have problems. As long as they lend to people who can afford to pay it back they shouldn't have problems.
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I agree that the banking situation isn’t just a UK problem but what happens in Iceland, the Far East etc doesn’t directly affect the UK citizens unless any of them have an account in those foreign banks. Although foreign banks have shareholders and fat cat bosses too.
Greed was the banking downfall. They made loans willy nilly without having the assets to cover them. So they borrowed from each other. Now how stupid is that?
Lending money means making a profit on the loan. The more you lend the more profit you will make, but only if the loans are repaid. It all looked nice in the ‘books’ but the reality is that figures in a ‘book’ are meaningless and circumstances have eventually caught up with them and we are in the current mess that is not of the people’s making.
One other outcome of this banking debacle is that the European Union has been shown to be nothing of the sort, as individual countries take steps to underwrite their own citizens’ accounts in their own banks.
There is surely a good case for getting out of the EU.