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nametheguilty

Listed below are comments made by nametheguilty between Tuesday, 28th April 2009 and Tuesday, 6th October 2009.

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We'll pay for banks to be virtuous 11:44am on 06 Oct 2009 The problem is we are used to banks underpricing risk.

The cheap finance of previous years was a mirage - the vast sums of money we have had to give to the banks recently makes up for the artificially low cost of credit we used to enjoy.

Although painful for many, it is a good thing if loans cost more - there will be less chance of future asset bubbles and resulting crashes as a result.
Microsoft: 'No bounce' 1:15pm on 05 Oct 2009 The excess liquidity in the first half of this decade led to the housing price bubble - the herd noticed house prices rising, and soon everyone was piling in.

Now the excess liquidity caused by governments pumping money into the economy is looking for a home. The herd notice share prices rebounding (as they were bound to do after such a fall) and so they pile into shares.

Excess liquidity + Herd Mentality = Asset Bubbles = Crashes
G20: History and fudge 09:57am on 25 Sep 2009 All set for the next economic bubble then.
Gordon Brown's monuments 6:34pm on 24 Sep 2009 Did she spot the looming crisis as clearly as she's spotted those 'green shoots'?
The lessons of Lehman 11:21am on 14 Sep 2009 "few can believe the bull-sized cojones of bankers to be taking fat bonuses again so soon"

I can! As long as bankers stand to get rich quick by taking risks, and the bank shareholders and/or taxpayers stand to pick up the bill if it all goes wrong, then we will continue to have reckless lending, leading to boom and bust.
Why are companies not borrowing? 10:32am on 09 Sep 2009 "So when shares and property rise, they tend to create a recovery which feeds on itself in a positive way, in a benign version of what gave momentum to the earlier plunge in output."

Err, no.

The rise in property values in the run up to the financial crisis was anything but benign - it was a fundamental part in causing the crisis. The fundamental problem is that people will regard property price increases as a 'good thing', just because they themselves own property. It isn't - it is inflation, and is every bit as bad as inflation in the cost of milk or bread.
The real G20 breakthrough 11:45am on 07 Sep 2009 Just where are the bank shareholders (mainly pension funds) in this argument? They are the ones that should suffer the most from reckless lending, and they are the ones with the power to sack boards that do not manage the business prudently.

The big unanswered question in the banking collapse, is what were the shareholders doing? Why didn't they object to the risks being taken with their capital?
Why bankers aren't worth it 11:22am on 03 Jul 2009 Excellent article Robert.

Now what you need to do is expose those running our pension funds. They effectively gave the green light to the banks and their bonuses. Why?

Either they couldn't comprehend the sleight of hand that was taking place, or they did understand what was going on, but kept quiet and pocketed their own bonuses.

Until this is investigated and exposed, there is little chance of the pension funds stopping the banks in repeating the mistakes of the past.
Sugar and Hornby: why they're hired 7:13pm on 07 Jun 2009 Quite why Sir Alan is held to be a business guru is a mystery - his company Amstrad was in the same position as Dell at one time, until a series of disastrous decisions by him almost broke his company (remember the emailer?).

Sugar's appointment is just another gimmick from Brown, just like his Youtube 'performance' and his solicitous enquiries about Susan Boyle.
Making banks safe 12:52pm on 28 Apr 2009 Well, it's been a long time coming, but at last we have an article that addresses the key issues.

The alarming thing for me is that there has been no public debate of whether Globalisation is 'a good thing' or not. It is simply assumed to be so.

Currently we have a system where we purchase goods from China, they save the money, which is then lent back to the west, which we then borrow, so that we can buy more goods from China, etc. etc. etc.

This is crazy - it can never work long term. We just get an illusory sense of wealth, but it is all built on sand.

We have to get back to a balanced economy, but with our politicians refusing to debate the issues what chance is there of that?

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