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    (Original post by chefdave)
    I'm not confusing anything.

    You seem to be under the illusion that we can sanitise immoral actions with a democratic mandate.
    Are you claiming taxation is immoral?
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    (Original post by AlexandrTheGreat)
    I imagine you're going tell us that it was excessive government regulation, and the like.

    Imho the abolition of the Chinese wall between deposit-taking commercial banks and investment banks and the "casino" was a grave mistake (Glass-Steagall). A perfect example would be to look to the banking systems of Canada and Australia, both of which retained the division between deposit-taking commercial banking and investment and speculative banking.

    Equally, keeping interest rates too low for too long was foolish.
    What does Glass-Steagall have to do with the British economy?!
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    (Original post by AlexandrTheGreat)
    Are you claiming taxation is immoral?
    In the main, yes.
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    (Original post by AlexandrTheGreat)

    Equally, keeping interest rates too low for too long was foolish.
    There it is. It was a Keynesian premise. As I've mentioned earlier, there is too much emphasis put on demand. Add to the mix Fannie and Freddie and there you go, another testament to the competence of government...

    Banks wouldn't need regulating if people's deposits weren't insured by the government. That is a moral hazard and only lent itself to further encouragement of risky lending. 'Casino banking' in itself is not a bad thing, it is just a function of the bank made easier through financial innovation. But when CDOs contain mortgage backed securities tainted by the Fed, that is when the problems occur. Then we get the bail-outs which is as far from capitalism as you can get. Banks should be treated for what they are; private entities. If a bank is silly with its money, then the company (and its depositors, who are basically investors) should lose out. Free up the funds for a more successful new comer.

    Wall Street got drunk, but it was government that spiked the drink.
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    (Original post by chefdave)
    What does Glass-Steagall have to do with the British economy?!
    You really ought to read up.

    http://en.wikipedia.org/wiki/Financi...7%E2%80%932008

    You do know the crisis did not start in Britain?
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    Labour were originally meant to be a party for the working man, not a charity. In my opinion only left wing, insecure and irresponsible idiots vote Labour. I don't vote Tory either, as they've gone liberal with the slimy Cameron at the helm.
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    (Original post by AlexandrTheGreat)
    You really ought to read up.

    http://en.wikipedia.org/wiki/Financi...7%E2%80%932008

    You do know the crisis did not start in Britain?
    Why would I read up on American banking legislation to get a handle on the British economy?

    The British banking system collapsed because British banks used British real estate as collateral for gargantuan mortgage loans. House prices rose to the point where the cost of housing outstripped our collective ability to pay for said housing, sub-prime Brits began to default and chaos quickly ensued.

    What has any of this got to do with America?
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    (Original post by Barksy)
    The Labour 'types' who want to tax the rich 90%,
    Are more a figment of your imagination than a significant political entity.
    (Original post by chefdave)
    You don't need a degree from the LSE to get to grips with the fundamentals. A bit of common sense will suffice.
    That's you ****ed then.
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    (Original post by chefdave)
    What has any of this got to do with America?
    Have you not heard of Northern Rock? Are you unfamiliar with the reasons it collapsed?
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    (Original post by Llamageddon)
    Are more a figment of your imagination than a significant political entity. That's you ****ed then.
    Wham! I laughed out loud at that, 1000 recommends Llama.
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    (Original post by AlexandrTheGreat)
    Have you not heard of Northern Rock? Are you unfamiliar with the reasons it collapsed?
    Yes, it famously offered 125% mortgages to anyone with a pulse. When it transpired that a lot of these debtors wouldn't be able to meet their monthly repayments Northern Rock's creditors in turn pulled the plug forcing the bank into insolvency.

    I repeat, what does the British housing market have to do with America?
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    (Original post by AlexandrTheGreat)
    You really ought to read up.

    http://en.wikipedia.org/wiki/Financi...7%E2%80%932008

    You do know the crisis did not start in Britain?
    So what if it did not?

    Just like the left (still) trying to pass off the UK banking crisis (caused by B&B and Northern Rock 125% mortgages) as part of a global phenomenon, imported like some kind of bird flu, rather than a screw up in which they are implicated up to their eyeballs.

    Labour played its biggest part in the banking crisis by their entirely deluded use of the housing market as its preferred engine of economic growth.

    Labour had (only) one big economic idea.

    It was to use deflation being imported from Asia to gain a free growth ride, particularly in financial services, on the back of the hyper-inflating housing markets for so long as overall inflation remained low.

    As long as the overall inflation rate remained low the mantra was that whatever was going on behind that mask was of no concern. Even if what was going on was a massive rise in consumer debt and a massive increase in money supply (printing money) to fuel it.

    So it was that we had thirteen years of non-stop double digit inflation in house prices.

    Increasing housing benefits, removing house prices from the inflation calculation played their part in fuelling this wondrous new engine for economic growth.

    Then it all went tits up as any old granny could have told you it would.

    This included the now much derided chairman of Lloyds who was so worried about the UK housing market he pulled back on Lloyds mortgage activity. A highly controversial decision, especially with the markets whilst other banks were coining it in, but a decision that undoubtedly saved his bank.

    Other banks such as Northern Rock and B&B were not so lucky having little choice but to go with the flow, they were retail banks and mortgages were their main income.

    Oh yes, the same stupidity was also going on in the US but, make no mistake, Labour and specifically Brown are up to their eyeballs in culpability for their part in the crisis. Labour was using house price inflation as our engine for economic growth, a completely deluded concept.

    Their history is the perpetual delivery of abject economic failure, which they choose to justify by their occupation, in all other respects, of the moral high ground.
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    (Original post by Llamageddon)
    Are more a figment of your imagination than a significant political entity.
    You'd be surprised.
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    (Original post by a729)
    I assume your not from the (labour heartlands of ) Manchester or Liverpool , right ?

    Lool
    I'm not no
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    (Original post by sambookaa)
    I'm not no
    I rest my case lool!
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    (Original post by Llamageddon)
    Are more a figment of your imagination than a significant political entity.
    What about Ken Livingstone?
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    (Original post by deepblue1972)
    Labour were originally meant to be a party for the working man, not a charity. In my opinion only left wing, insecure and irresponsible idiots vote Labour. I don't vote Tory either, as they've gone liberal with the slimy Cameron at the helm.
    There's UKIP the 'real conservative part'

    At least until Boris becomes leader !
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    (Original post by a729)
    I rest my case lool!
    However I am still technically Northern. (lool)
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    (Original post by sambookaa)
    However I am still technically Northern. (lool)
    Lool - maybe one of the few blue areas north of the Midlands lool!
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    (Original post by Barksy)
    You'd be surprised.
    I would indeed be surprised if you were correct as what you have stated is so self-evidently absurd.
    (Original post by a729)
    What about Ken Livingstone?
    wha'bout him hun?
 
 
 
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