As it is becoming clear, banks are being bailed out by governments.
And governments bail out banks simply because banks use the money of its citizens.
A bank just does not have enough of its own funds, but is more of wheeler-dealer, now this operation is called treasury; the bank actually plays with its deposits and credits.
As credits of the bank are nothing but the deposits of the people in effect the money of the people. The bank is the dealer(as in wheeler-dealer), now called intermediary.
And there will come a time when a thief shall be called a borrower.
coming back..., governments are set up to protect and safeguards its citizens/ people, so if these citizens are harmed in any manner economical or physical, the governments can be sure that in the next election these citizens will keep them out.
So the governments interest is the citizens interest and this is served by bank bailouts.
The key point is the bankers are the ones getting the free lunch.
The bankers manage business and they do fine and if they do mismanage business they are still fine.
I am sure somebody pays.
Someone is being short-changed.
A moot point is, why was there no Enron or Tyco bail out, but there is a bank bail out by the government.
Tuesday, April 22, 2008
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment