for the economists on here re: bankers, austerity, and iceland...

[brunswick]

not shown on main stream media (ah must be a conspiracy thread, lizards, captain zog etc etc lalala).....is what happened in iceland recently, and planning to happen in spain...

the people are legally arresting the bankers

(oh no, links from the internet, and a utube video, must be nonsense)

Iceland Dismantles Corrupt Gov’t Then Arrests All Rothschild Bankers

Spanish Activists Seek Arrest of Banksters - WideShut: Alternative News

http://wwwDOTyoutube.com/watch?v=64eI831eKY8&feature=player_embedded


i post this at it seems many on here are deep in the bucket of "we are in it together, we need austerity to help the nation" type of viewpoint.

 

[GreersElbow]

I'd arrest the top bankers who saw this coming, and that's about it. Austerity to some extent is actually required, we cannot sustain the same level of spending any-more but at the same time we cannot be too sharp with the axe, it should be targetted rather than aimlessly flung at everything in the public sector.

But in regards to the financial collapse, the top bankers knew exactly what was happening. The water begun to boil in 2005 in the U.S housing market, which global banks begun investing in and then selling on to other banks after realising that there's no profit to be made. It was essentially pass the parcel till the system collapses - so yes, bankers MUST be held accountable for their lack of action.

BUT, we must also review our regulation authorities, such as our own Financial Services Authority (FSA) If the FSA cannot foresee risks and provide over-sight, then that's a sign that government regulation was not only ineffective, but entirely out of its depth in regards to fully understanding the banking sector (Nor do I myself, the best way to understand is to work within the markets yourself). So we have to raise the question; does Government provide sufficient regulation for such an important aspect of not only our economy, but the global economy.

In regards to the deficit, we were slowly building a budget deficit pre-credit crunch. Whilst this was mainly going on the 2 wars, building schools and hospitals. Labour's complete lack (and from my point of view) deliberate turning a blind eye to tax evasion to keep the floating voters happy, big businesses happy and their pockets lined with big business money to ensure they don't turn to the Tories. Labour didn't do enough to prevent the budget deficit getting big, however. People do blindly believe Tories' typical 'Labour left us with a big mess'. There's some truth to this, there was a bit of a mess. When you look at revenue, however. The huge jump in size of the deficit was caused by a subsequent recession, which caused massive unemployment which in effect left a gap in revenue compared to spending. Brown and Darling maintained a Keynesian approach to keep spending to boost aggregate demand to stabilise the economy, to get people in to employment and spending their money which would then mean retailers and other sectors gain money (multiplier effect). And many Conservatives ignore the fact Brown's handling of the crisis was mirrored in many countries, including the U.S under Republican executive control and begun to see growth in the economy.

The truth is, our economy heavily relies on the financial sector, and the bankers absolutely know this. Capitalism should be about gain and loss. But with Canary Wharf creating 10% of UK's GDP, they could get away with crashing the economy and requiring a bailout. Which arguably is socialism for the bankers, and the consequences of their predatory capitalist policies for the rest of us. What we should be doing, is reiterating Capitalism's primary rule: Only Winners, no losers. If we are to continue propping up the Banking sector, we might as well nationalise it.

What I would propose is introducing legislation that penalises banks known to be recklessly dealing, we must understand that a part of the crisis is actually the bank's job and function, however. Many bankers were aware of such risks, and never acted on it. They must be punished, imprisonment and a monetary fine for the bank and the reassurance that they will not receive public money. We should also use public money to pump into the private sector, more specifically; the construction industry. We know this creates jobs and wealth, and also the most vulnerable sector to a recession. Because this is one sector that easily employs people without large qualifications, it is one we should be looking over and ensuring it continues to grow at a steady pace.

Also, one last note: more funding for British manufacturing or at least emphasis on investment from private business.