The property crash and banking crisis has been caused by the banks and they should be made to pay for their mismanagement and greed and not bailed out by taxpayers who are already suffering from their incompetence

This means that the US taxpayers who have been the hardest hit by the banks will be paying yet again to prop these thieves up and not see a penny in return. Property prices are going to continue to fall because the banks will still not be lending and that means that any homeowner will be losing money whilst the banks continue to profit from the situation.

Start of article about the banking crisis.

Previous page about the credit crunch.

So, what should the US government be doing? First of all they should buy all the bank owned properties off the banks at the lowest possible values; let the banks take a hit on this, they deserve it. Then grant a mortgage to those people who were repossessed at an affordable rate and put them back in their properties. This will achieve three things. First of all, it will give those people back their self respect and house them in a property that they will one day own. It will put much needed cash back into the hands of the banks and by reducing the glut of properties on the market, it should give the market a slight boost. We don't want property prices to rise, we just need some confidence back in the housing market.

SOLUTION TO THE BANKING CRISIS

What they shouldn't do is simply buy all the mortgages off the banks as this will leave them totally exposed and it will be the taxpayer who will cop the bill. Furthermore they should put in strict rules and regulations in place to ensure that the banks are never allowed to behave in this way again. In addition, the people responsible for this incredible fiasco should be brought to account and pay financially for their misdealing. No one responsible should be allowed to have profited from this dreadful situation that they have been allowed to cause.

Banks have been allowed to make huge profits from serving no useful purpose. The argument that trading on futures, money markets and the stock exchange have fuelled our economies is true but the reality is that it was always paper money and non productive. One glitch and the whole thing was always likely to collapse around our ears and this is exactly what we are in danger of seeing. Banks have got to be made accountable and controlled by strict regulations.

If this $700 billion salvage plan goes ahead without any controls, we will all be paying for decades to come. The boat is sinking and the holes need to be plugged, throwing money at it is like continuing to bail the boat out without fixing the problem.

This $700 billion is not going to cure the problem, it is only going to stem the flow. Had the banks been honest and come clean earlier we would have had time to sort the problem out. Now the US government is being panicked into taking action that will need sorting out time and time again because they don't fully understand the problem nor the full extent of the exposure they are committing themselves to. This money will seem like a trifle when they realise how much they are going to have to throw at this problem in order to prevent losing the lot.

Banks have been lending to each other and now don't trust each other to continue keeping the money flowing. There would appear to be no honour amongst thieves any longer and having lied so unscrupulously to each for so long, it will be some time before the Spivs trust each other again. It would be yet another foolhardy act to give these people all this money without seeing anything in return. Sod the banks, look after the little people.

SOLUTION TO THE PROPERTY CRASH

So what should you be doing with your money right now? Whilst there is supposed to be a security guarantee that protects the first £35,000 of your money; should your bank go under, that guarantee is only as good as the authority guaranteeing it. Supposing all the major banks go down like a pack of dominoes? That guarantee would become unaffordable and worthless as the financial bill would be astronomical and the tax payer; because it is the taxpayer they would have to turn to, would never be able to cover the loss. It was designed to cover the eventuality of a bank going down, rather than dozens and the authors never foresaw this situation because they are stupid politicians and incompetent bureaucrats.

Read on about the credit crunch.

The property crash and banking crisis has been caused by the banks and they should be made to pay for their mismanagement and greed and not bailed out by taxpayers who are already suffering from their incompetence