Tuesday 4 May 2010

LET THE BANKS FAIL ~ NOBEL ECONIMIST JOSE STIGLITZ

WHAT A REFRESHING IDEA!

DARN GOOD ONE IF YOU ASK THIS PEON.

BUT WHAT DO I KNOW EXCEPT THAT BANKING IS ONE MASSIVE FAIL FOR THE COMMON PERSON?


WHAT DO I KNOW ABOUT HOW THESE LEECHES ARE SUCKING THE LIVES OUT OF EVERYONE THEY CAN WHILE THREATENING MARTIAL LAW IF THEIR DEMANDS FOR EVEN MORE ARE NOT MET?

I JUST KNOW THIS IDEA APPEALS TO ME IF ONLY BECAUSE IT MEANS SOME FAT CAT DOES NOT EARN A $BILLION BONUS BECAUSE HE WAS ABLE TO SHYSTER THE MOST PEOPLE. AMEN DR. STIGLITZ ~ AMEN.

The Government should allow every distressed bank to go bankrupt and set up a fresh banking system under temporary state control rather than cripple the country by propping up a corrupt edifice, according to Joseph Stiglitz, the Nobel Prize-winning economist.

Professor Stiglitz, the former chair of the White House Council of Economic Advisers, told The Daily Telegraph that Britain should let the banks default on their vast foreign operations and start afresh with new set of healthy banks.

"The UK has been hit hard because the banks took on enormously large liabilities in foreign currencies. He asked,

"Should the British taxpayers have to lower their standard of living for 20 years to pay off mistakes that benefited a small elite?"

AMERICANS!!!
ASK YOURSELF THE VERY SAME QUESTION!
THE GREEKS ARE SHOWING
CHUTZPAH AND FIGHTING.
THE ICELANDERS HAVE DONE WITH IT.
GET YOURSELVES IN GEAR FOLKS.

There is an argument for letting the banks go bust. It may cause turmoil but it will be a cheaper way to deal with this in the end. The British Parliament never offered a blanket guarantee for all liabilities and derivative positions of these banks," he said.

Mr Stiglitz said the Government should underwrite all deposits to protect the UK's domestic credit system and safeguard money markets that lubricate lending. It should use the skeletons of the old banks to build a healthier structure.

"The new banks will be more credible once they no longer have these liabilities on their back."

This would work only if NEW people with integrity, unselfishness, and true commitment to humanity were placed in position to run these banks. It would not do to have the old thieves returning, or their proteges or any who are of a similar mindset. Care would have to be taken that, in the creation of this system, there are no hidden traps to snare the people who, in their relief, become careless.

Mr Stiglitz said the City of London would survive the shock of such a default because it would uphold the principle of free market responsibility. "Counter-parties entered into voluntary agreements with the banks and they must accept the consequences," he said.

Such a drastic course of action would be fraught with difficulties and risks, however. It would leave healthy banks in an untenable position since they would have to compete for funds in the markets with state-run entities.

Mr Stiglitz's radical proposal is a "Chapter 11" scheme for households to allow them to bring their debts under control without having to go into bankruptcy.

"Families matter just as much as firms. The US government can borrow at 1pc so why can't it lend directly to poor people for mortgages at 4pc. ," he said

6 comments:

  1. Thank you for this insight. There are positive ways out of this mess. Sweden did something similar in the early 1990’s and they weathered the storm. We shall soon see whether a solution is desired or if the collapse was a deliberate strategy.

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  2. I agree with that.... Let the banks go bankrupt. Who owns these fraudulent banks anyway? We are told that they are Jewish owned but are they? It now appears that they are Vatican owned..and the Vatican is owned by five families:
    Aldobrandini, Orsini, Farnese, Lancelotti and Somaglia. Every time there is a war, everybody loses except the banks.

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  3. Great article, thanks Noor!

    This is fine, as long as we bring back the gold standard and return all the gold the Federal Reserve and the Central European Banks and the Japanese and the Cayman Island Bankers and the banker funnel through Mexico City and London and Tel Aviv stole from everyone and put all the elites, especially the bankster-gangsters in Abu Ghraib for life without food.

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  4. http://www.theflucase.com/index.php?option=com_content&view=article&id=3405%3Agreeks-set-central-bank-on-fire-three-killed&catid=41%3Ahighlighted-news&Itemid=105&lang=en

    Greeks set central bank on fire, three killed. Thousand s of protesters scream Europe rise up.

    Alex Rossi, Europe correspondent in Athens

    Sky News

    Police said three people are dead after an Athens bank was fire-bombed amid national strike action.

    Greek police have clashed with protesters in the capital as tens of thousands of people joined a 24-hour walkout over the country's planned spending cuts.

    Sky News understands two women and one man were killed when the central bank was set on fire, but it is not yet known if they were workers or customers.

    Police said the blaze started when a protester threw a petrol bomb into the building.

    The general strike is being staged as a protest against a new round of draconian austerity measures.

    Police said as many as 20,000 people are on the streets of Athens as rallies around the country kicked of.

    Also in the capital, a large group of people attempted to break through a riot police cordon guarding the parliament building.

    One man with a tannoy is shouting out for people to rise up against the 'IMF junta'.

    Alex Rossi in Athens

    The protesters launched rocks and petrol bombs at the officers, who responded with stun grenades and tear gas - filling Syntagma Square with chemical smoke.

    Violence was also reported in Thessaloniki, where a further 20,000 people joined the city's demonstrations.

    Greece has been paralysed by the national strike and is effectively cut-off from the outside world.

    Flights to and from the country have been grounded, trains and ferries suspended their routes and public services - including hospitals and schools - were also affected.

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  5. Completely by coincidence I found this man speaking on the university station today and I listened to him while I drove. He is not radical, he says nothing about Zionism, etc. He is an arresting speaker. I think for him to do so would ruin his acceptability in the mainstream.

    But he does know his stuff and says it with that smile of the doctor who is encouraging a child to believe, despite the taste, it is good for you.

    He really did not say anything we are not aware of but he tied it together easily enough for a newbie to understand that they had been badly ripped off. He points no fingers but... alludes a few times. Leaves it to the listener to draw conclusions. He is definitely credible.

    I am just not so much into Celente any longer. I feel he is the Alex Jones of finance, blowing things up just a tad past the panic button for some agenda. As good as his material, he speaks just a little too big and gets too much media attention when he opens his mouth.

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  6. Gatekeepers. Establish the bone fides and then direct the flow. How many times have we seen this? Where is the news?

    Sorry Noor. I’m a cynic. I don’t believe a single member of the tribe any more- not one! I wanted to believe in the goodness of the human heart, I really did. I was also going to point to an article on John Kaminski’s site but it’s been knobbled.
    http://www.johnkaminski.info/pages/main.htm
    I’ll leave it at that.

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