The US works on the simple basis of risk and reward, in simple terms the greater the risk the higher the reward! In the mansion house speech recently by George Osborne he made reference to ” These banks must stop being so cautious and relate risk to their lending policies” meaning of course without lending to people, this country cannot get out of the mess we are in! Of course looking back to 2008 we now know that reckless lenders and their blatant disregard for looking at the bigger picture of “What If” people cannot afford their lending, allowed an eventually global recession!
Of course every government denied it, as to admit it would mean their lending policies, vis’e ve their overall economic strategy of borrowing or lending was indeed wrong! The sheer fact that we live in a world of unless we increase consumer spending, we cannot grow or survive has in my eyes always seemed the wrong strategy to adopt! Of course many billions if not trillions of $ have been made by this method, reason why people are now the latest commodity.
But this latest MF Global debacle really takes it too another 2008 reason to see that “Banks” are not to big to fail, but cannot be stopped! If you can steal clients money to pay your debts and get away with it, what hope is their for change!
Read the Article at HuffingtonPost