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International Rescue

International Rescue

The worldwide banking issue is something that I have such mixed emotions and feelings about. On the one hand I was always of the belief that all bankers were just one letter away from the truth, and that they were far too highly rewarded for gambling with both nonexistent money and other peoples money, and there was simply not nearly enough control on what they did. A friend tried to explain some of it too me, and while I understood what he said, I could not understand why the FSA, the Government, the banks themselves, or someone with an ounce of common sense could allow it.  

One of the things on my list of 50 things to do before I am 50, I list at number 26, the wish to be able to bet a grand on red, but for me it would only be fun if it was my grand, and so if I lost it would hurt a little because it would have been mine, but these people are betting on red, or black, or even both, with someone else’s money and so have no responsibility or recourse.

When I listen to the adverts trying to sell various savings schemes like Peps or Isa’s, I have always noticed the line in the small print that investments can go down as well as up, but it appears to me that that only applies to the small or private individual, and certainly not the big banks. Today I have spend some time reading the newspapers, the headline reads “International Rescue”, and talks over and over about how the worlds governments have pumped billions of pounds, euro, yen and dollars into the markets to reinvigorate the market.  What I also read is that the money is my money, my tax money, that is going into the system. What I also read is how my taxes will have to go up to pay for it and that even after all of this investment the world is still heading to recession. So I have to wonder...

The other thing I could not help but notice, and this was billed as a really bad thing, but that this years Banker Bonus was going to be the lowest for more than a decade and would be only £3billion to share out. Hold up...why?...why are they getting anything? I just can see absolutely no justification whatsoever for bankers to get any bonus, well unless there are the only one in the city who was successful this year. Why is an industry that has failed so spectacularly, with such ramifications even thinking about paying bonuses. It just seems immoral and plain wrong.

But then you start to look at the other side of this story. The money generated by the city of London accounts for something like 8% of this countries economy, that is a lot. What we also know is that the bonus system has a vast “trickle down” impact, and that money is the backbone of so many other industries. But again that just seems like another example of the small guy suffering from the stupidity of the big players. But if I have any sympathy it is based on the fact that a damaged banking facility means a damaged Britain.

Maybe as a nation we should learn that we need to diversify, we need to have other ways of generating the wealth the nation requires. But of course to do that we need banks, but we need banks to be able to support industry, to support a greater spirit of entrepreneurialism in this nation. So I wonder to myself if the government had approached this from a different direction, if it had supported 1000’s of SME’s with the £500Billion then Britain could have been far better off in the longer term.

 

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