On Thu, 10 Dec 2009 19:02:05 +0000, John Rumm
wrote:
Bruce wrote:
I fully understand people's anger at the bankers, but what I don't
understand is where the same people think the wealth and taxes are
going to come from to get the UK out of this recession.

When "New" Labour came to power, 20% of the UK's GDP came from
manufacturing. That is now down to 11%. The importance of the City
of London and its investment bankers is therefore even greater now
than ever before.

Most of the shortfall in Corporation Tax receipts - by far the biggest
hole in Captain Darling's rapidly sinking ship - is a result of the
slump in profits from banking and insurance. So however much we hate
the bankers, unless the financial sector gets its arse back into gear
double quick, we may be in for a long and very painful recession.

Perhaps putting them on community service is not such a good idea?

Not only that, many of the so called "bonuses" were tied to a percentage
of the profits made by the banks. Profits which the exchequer will no
doubt have a much larger slice out of than the bankers will in bonus
payments.


With the bankers, we were doomed. But without them, things would be
even worse. :-(


You also have to marvel at the government's policy of "quantitative
easing" - basically having the bank of England buy up huge quantities of
gilts. Shame no one ever taught the chancellor some basic economics. You
put a huge demand on something, and then back that with government (i.e.
our) cash, and the price is going to go up. So the investment bankers do
what investment bankers do best when they see a sure thing that is only
going to go up in value. The govt then acts all surprised when they end
up trousering the money they are pumping out! Where else did they think
it was going to go?

Still the real **** will hit the fan if we lose our AAA credit rating!


In the old days, "quantitative easing" was more accurately described
as "printing money".