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Originally Posted by Taggy
Well lets see how long Barclays remains free of "Government Medling" Think you'll find the Arab deal has strings attached too! The dramatic fall in RBS shares has just as much to do with Hedge Fund Speculators resuming their "Short Selling" practises again as the performance of the business. Barclays arnt immune from that...time will tell. None of the banks...including Barclays are willing to accept that they, along with fund managers are the cause of the current finnancial crisis. Its their Greed and incompetance which is behind the recession we now find ourselves in. Heads need to roll, and more regulation needs to be put in place to stop this from ever happening again. Bonus payments should be for long term performance, not short term, unsustainable gains. First and formost Banks should have preferential rates and lending criteria for British Businesses and individuals. We keep hearing how we as individuals have borrowed more than we can afford...yet the bulk of the so called "Toxic Debt" is what banks have lent to foreign customers....they need to stick primarily to markets and areas that they understand and are easier to regulate.
Best Regards - Taggy
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Why should a global company give preferential rates to british borrowers and savers? There are few 'UK' Banks now. In order to protect themselves from hostile takeovers it was necessary a number of years ago to become Global organisations. Barclays has a large prescence worldwide and is driving the increase in Banking in places in Africa and India bringing bank accounts to millions of people who have never had access to such services.
The vast majority of the Toxic debt you refer to is not UK loans to to foreign investors. The majority is American Sub primes watered down with other debts in packages sold on and on and on till its lost its identity.
Individuals has been foolish buying on cheap credit with no idea of what would happen during a down turn. It was a fact that in one year BMW sold more 3 series cars than Ford did Mondeos, now that is a crazy situation. we were all being sold a 'lifestyle' and no one bothered to think if they needed it or not. I'm fortunate that I was brought up with little money to hand so even though I'm fortunate to have a very well paid job I don't see the point in 'wasting' money for no reason. I could/can afford a brand new car if I wanted but I know that due to teh mileage I do it would be worthless in 4 years. I can't see the point in throwing 15-20K down the drain when I can do the same journeys for less than 5K. So I drive what some would term an old banger, who cares? I'd rather put my money into appreciating assets than depreciating ones! As such I'm looking to be in a position to be able to choose to retire when I hit 55.
People have been enjoying holidays, cars, flash goods etc on 'equity' on a house that was only really a false number driven up by the availability of cheap credit. Now its a reality that negative equity if likely to cause a fair amount of pain.
There isn't a Bank on the planet that has 'forced' anyone to borrow money. Its your own responsibility to work out if you a) need it b) can afford it and c) should do it!
I also fail to see why Banks are seen as something different to every other business in the land. They are busineses, there to make a profit( for shareholders or whoever). If they were too expensive they wouldn't have customers just like you don't pay over teh odds for anything else you buy. IN fact I would even venture that for Mr Average he gets a VERY good deal out of his Bank. They look after your money, pay you interest for savings, provide you at great cost with Cash Machines, branches, debit cards and the infrastructure so that you can spend your money in any number of places. how much does all this cost you? NOWT if you stay in credit. That to me has to be the bargain of the century.