Monday, December 29, 2008

Unfair to blame bankers

The Archbishop of York has slammed the bankers for their 'greed' in causing the economic crisis.
But aren't they the unfair victims? Easy scapegoats because they are rich?
Aren't we all to blame?
First, we have noted on this blog at least, the demands of govermnments in encouraging and forcing banks to make loans to people who could not afford them.
That is how the sub-prime crisis developed in the US.
And wasn't such pressure, such regulations as the Community Reinvestment ACT, only a response to political pressure from 'the people.'
the very same people, who as customers wanted easier loans?
And that banks who did not lower their standards were missing out, losing business.
So the banks that lowered their borrowing standards only did so due to the competitive pressures of serving their customers.
Responsing to consumer demand hardly sounds like greed to me.
So, in a sense, aren't we all to blame?

5 comments:

Redbaiter said...

"So, in a sense, aren't we all to blame?"

No we are fucken well not all to blame. The ones to blame are the socialists, those fucken idiot brain damaged religionists who believe the answer to every problem is bigger government and more regulation.

As a persistent advocate for small and unobtrusive government, I share not one scintilla of blame for the always predictable outcomes the dopey dumbfuck dirtbag socialists have brought upon society. They are a stain upon civilization, and the globe will only stop degenerating once we forever turn our backs on this idiotic faith.

Psycho Milt said...

Personally I find it hilarious that when it comes to these criminals, suddenly the right-wingers are happy to blame "all of us," or "socialists," or "hell, anybody other than the actual people responsible." Thanks for the laffs, guys.

JC said...

If we will run a country that has higher than average interest rates, which taxes the locals on interest, gives significant incentives to avoid tax by investing in property and is reasonably stable, then we'll get overseas money flooding in.

In the good times that's a hell of a lot to be spread around and one of the few areas where there will be a return is mortgages.. and that's what happened. No good to blame the banks for doing the obvious and sensible.

If we want to avoid this situation, then we'd better stop the Govt from taxing and spending, tighten up on the inflation fighting and offer more useful investment options in stuff like infrastructure.. a good start would be on back country roads like State Highway One.

JC

PhilBest said...

Democracy gives us economically illiterate politicians running things. The Leftist assault on traditional moral teaching and the dumbing down of our education system leaves people completely unable to see through Ponzi type schemes, whether run by government or finance whizkids. Many of the same finance whizkids are themselves victims of "post-Christianity" abandonment of traditional notions of prudence, thrift, responsibility, and the traditional healthy disbelief in "money for nothing".

Some of the whizkids DO know better and merely exploit widespread ignorance to gouge as much as possible out of their ignorant fellow man, whether by inventive finance schemes or in demand for taxpayers money to bail them out.

The people who unfortunately end up suffering the most, are the people who do all the real creation of wealth, the slow, honest way; by working and producing. And the people who actually save and who pay off debt. The Lefty politicians end up killing these people and enterprises off and leaving only the bludgers and the crooks standing, with dire consequences for the future.

The belief of the many, in the ability of nanny State to solve their problems now, is going to come back to bite us all big time, simply because we are digging ourselves into a problem that is much too big for the government to fix. I have been saying this and saying it, on Kiwiblog. Iceland is just an extreme example. But if our government's total revenue is around 30-40 billion a year, clearly they do not have a hope of standing up to demands on banking guarantees or collapsing house equities to the total tune of hundreds, not tens, of billions of dollars. And to try and pretend otherwise is merely to increase the chances of the problem as people continue to do stupid things with a false sense of security.

If we all still actually believed that there is no such thing as money for nothing, there are no magic genies, and that we all need to work for things and save money and stay out of debt, we would not end up in this sort of mess. But that would require a reversion to quaint, outdated moral standards.

Roger Douglas or Richard Prebble or Rodney Hide, I forget which, pointed out in one of their excellent books years ago, that a culture's favourite folk stories are an interesting guide to the state of that culture. The "tale of Dick Whittington", indicates a culture that values enterprise and thrift. "Aladdin and the Magic Lamp", comes from a culture that is on its way to moribundity and irrelevance. And I fear that in the post-Christian West, we are on our way to joining that culture, if not being conquered by it.

KG said...

"So, in a sense, aren't we all to blame?"
No.