posted on Jan, 6 2013 @ 06:40 PM
Boom bang a bust
Boom bang a bust
Boom bang a bust – when will they ever learn that’s how it goes.
Following the collapse of Lehmans, Northern Rock, RBS et al, and the ensuing chaos for we mere mortals who happen to inhabit the real world, with real
jobs, with real bills requiring to be paid with real money – the banks – at an international level have been allowed to write their own rule book
once again.
‘The new "liquidity coverage ratio" will be phased in from 2015 and take full effect four years later.’ In English; new rules have been put in
place to limit their leverage ratios to sensible levels. (We must all be (unwillingly) familiar with the term 'leverage' by now.)
However, it would seem that the chastened good intentions of the banks to do the right thing, and permit a sensible ratio, have quickly fallen by the
wayside. Albeit the new rules aren’t even in place yet – they have been relaxed already to allow the banks to include ‘corporate bonds, some
shares and high-quality residential mortgage backed securities in their permitted stocks of liquid assets.’ In English: precisely the same
nonsense they were playing at before.
We really have to wise up to banking practices – at the end of the day it’s us who end up paying for all those golden handshakes, super duper
bonuses and inevitable crashes.
BBC Business