| Topic: | Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Time to raise interest rates? | |
| Posted by: | E Yarrow | |
| Date/Time: | 25/03/09 19:58:00 |
| Not at all. "You really want the government to have such influence in banking that they can examine every investment that a bank makes to make sure that they are investing wisely." Compliance and regulation in the city is a full time job already. The government can do this already. What difference does it make if you operate legally and in best practise? There are without doubt many parties to blame. Especially the rating agencies. More so the US and UK government..... they binged on the profits and failed to secure the foundations. (The sub prime is a result of Clinton policy) What is ridiculous to suggest is that the banks can self govern when the rules are slackened. If you pipped up you were fired. Banks are not like other companies, and are firmly fixed to government control and regulation. How had this not been possible in the past? The BOE used to do a good job. There is a very good reason why the credit bubble took off. There is no excuse why Brown did not save during the good times. Well... he never figured the bad would come. Derivatives and credit are a fundamental of a modern society. If done properly, it makes sense. In that I mean a genuine 1 for 1 relationship with the underlying... regardless how clever you get. The government has spun this so far it is ridiculous. The regulations sucked. The watchers sucked even more... they had no clue. As witnessed by the miss handling of pretty much everything. We are in big trouble. |