Jan 19 2009
How Can A Bank Lose £27 BILLION???
Yes, you read the title of this post right! The Royal Bank Of Scotland was today announced to have made a loss of £27 billion in 2008! When you consider that these people actually look after our money for us it is really quite shocking and it beggers belief that they would be allowed to do that job! Their announced losses were £7 billion but RBS lost a further £20 billion thanks to their disastrous takeover of ABN Amro last year. They are record losses and the share prices fell by 67% to 12p each to reflect this, but it is more apparant than ever that these people and their greed played a major part in welcoming the credit crunch with open arms. Considering that tax payers have bailed them out not once but twice now and the above figures are fact and not fiction, I find it a bit rich that the banks still won’t lend to business in desperate need of a financial boost to ride out the storm.
These figures were announced just before Prime Idiot Gordon Brown announced that we were to bail out the banks AGAIN so they could be insured against bad debt. We are to pay for their stupidity and greed yet again to get business moving again as a result of this “state insurance”. The idea is to get them lending again by providing insurance against bad debts so we would be paying for loans and credit lines for companies that fail in the coming years. Again, the banks get away with not paying a penny for their mistakes.
I understand the need for credit to get industry and businesses going again but the success of this venture all depends on Gordon Brown’s ability to encourage banks to start lending again and there is nothing to say that they have to at all. By law, they can do just as they please… and undoubtedly have in the past! Furthermore, this is fast becoming a time bomb. Brown is writing cheques that he is never going to have to cash. We are. We are going to be heavily taxed for years to come so my generation (I’m 27) and my children’s generation are going to have to pay for the mistakes of today in the years to come. That is not fair at all. Although something has to be done, Brown cannot keep announcing these initiatives, which incidentally keep failing to have the desired or indeed any effect, and adding more debt to our future tax bill without consequences.
And there has to be consequences in the next election or God help us all!
