Only Banks Are Left

Politicians across the world have tried every possible strategy to solve the economic crisis except one. The situation is not getting better but most obviously getting worse, when in a first world country, Greece, there are shortages of basic things like cotton wool in the hospitals (reported in Greek papers today). The one thing part of  the capitalist system which has remained relatively untouched is the Banks and Bankers.

They have not been affected by the austerity package in the UK. They are being bailed out to an ever greater extent by taxpayers. In a boat needing such furious bailing one would row for the shore, not stay in the middle of the pond. Politicians in many countries have been suckered by the banking lobby into providing more and more taxpayers' money which is stopping in the banks' vaults to pay bonuses and retrieve the horrific bad debt situation.Banks are taking in money at record low interest rates but the gap between borrowing and lending rates is enormous.

It is time to tackle the banking system. Turn those banks already owned or partially owned by the state into Social Enterprises or Mutuals and get them moving the economy again. Refuse bailouts to any bank which does not agree to follow the same path. So what if they go bust. It would at least release the capital they are hoarding.

Cut all bonuses. The bankers that threaten to go abroad will certainly find jobs in Spain, France, Italy and Greece hard to come by and I doubt there are several thousand bonus heavy vacancies anywhere in the world. Bankers taxes will reduce but getting other people back to work will turn them into taxpayers and reduce the benefits bill.

Of course if you are a politician whose brother or best friend is one of those bankers, you might find this course of action difficult.
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About robthill

I am semi-retired ICT Staff Tutor in Dundee, Scotland and an online facilitator. The views here expressed are my own somewhat quirky feelings about the world as I see it, no doubt just as prejudiced as most other bloggers.

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