Friday, 30 January 2015

#BANKDEBT BANKERS #DEBT & REAL REALITY #CONSUMERDEBT

"DON'T BE FOOLED. IT WAS BANK BORROWING THAT CAUSED THE DEBT CRISIS, NOT CONSUMER BORROWING.

Posted by Jake on Saturday, March 24, 2012So who was the "irrational" borrower that 
brought down the economy? And was the culprit actually "irrational"?

If you weren't sure why the banks got themselves, and everyone else, into such a pickle with the Credit Crisis, the 2012 Budget Document is the source of some nice nuggets of information. Civil servants, competent and on the whole moderately paid, have little incentive to avoid the truth and will often slip it in if they can.

The financial sector, having burned down the economy, tried to plant the box of used matches in the hands of the public. Ordinary Britons were fingered as a major cause of the crisis due to accepting a rush of cheap credit they couldn't afford.

They glossed over the fact that the banks and building societies were the pushers of the cheap credit. And they also omitted to point out that actually it was overwhelmingly the banks - not the consumers nor the non-financial businesses - that went on a borrowing frenzy"

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