Originally posted by Prince Mongo
View Post
Bailing out the banks was not a solution to the debt crisis, but it was a necessary step which is why both the democrats and the republicans were pushing for it to happen.
The bail outs have not solved the banking crisis it has delayed the inevitable. The $ and £ is losing it's value against real commodities. The reason gold has shot through the roof is because the wholesale printing of money (quantative easing) has flooded the system with new paper which erodes the value of your dollar.
The bail outs are like a bankrupt spending on credit cards to give the impression of being solvent .
All it has done is increase the rot,delayed the inevitable and made the inevitable worse..
I also think that there was an issue of accountability that should have been written into the bailout project to ensure repayment by the banks in question such as suspension of executive bonuses, limits on shareholder dividends etc until the bailout cash was repaid.
It's worth pointing out that Canada is doing relatively well out of this recession and didn't encounter nearly the trouble that the US did for a number of reasons, at least one of which was the robust banking system.
Comment