Depositors to bail out NZ banks?

[mashman]

switzerland...

k???????????

[mashman]

More than that, the last Labour Government supported it, so prior to their losing to National in 2008.

Wouldn't surprise me.

[Grizzo]

Banks and politicians = scumbags and motherfuckers.

[Coldrider]

You're exactly right, I wonder how many people don't realise that they have the right to call in the debt tomorrow if they see fit.

bang on, great depression in the 30's, fanny may just recently, mortgages get sold to another party, they call them in, then instant transition of wealth from the poor to the already rich.

[mashman]

bang on, great depression in the 30's, fanny may just recently, mortgages get sold to another party, they call them in, then instant transition of wealth from the poor to the already rich.

and the UK govt have decided that they want their bit of the pie

[Winston001]

...mortgages get sold to another party, they call them in, then instant transition of wealth from the poor to the already rich.

Well NO.

In fact you've put your finger on the straw which broke the Global Financial Crisis. People who had savings (Japanese, Dutch, Germans, Saudis, Chinese etc etc) put those savings into so-called AAA mortgage securities only to find out the borrowers couldn't repay.

So not only did the borrowers lose/walk away from their homes but millions of savers also lost their money.

That's why its a crisis. If the investors/savers had recovered their money over time they'd be stressed but not devastated. That money would have returned into spending and jobs but it is gone for all time. Result - the people in the rich nations are substantially poorer so they cannot spend.

[Winston001]

Just for the sake of clarity, nobody has become rich from the GFC. There might be a few counter-cyclical investors who did well but they are rare.

When the world economy was booming, bankers flourished as did some fund managers. When the GFC hit many of them ended up on the street. No job. No gold. Nadda. A few at the top survived.

The whole point of the GFC is it hit the well-off as hard as the rest of us. The difference is they had stuff they could sell to get by.

The money lost in the GFC is gone. That is why a few of the big economies are printing money - to replace what was lost - but it is a desperate move. It will all flatten out someday possibly 2018.

[Winston001]

My savings are mine....

In short, my savings and my old body are all I have that I can call my own, so, John Key, the cypriot government, the Nazi party and anyother mofo that wants it can Feck off . Bail out the banks? bollocks!


Other than that I don't have any feelings on the subject.

I agree and I'm sure everyone else does too.

But...

Lets imagine the bank which holds your savings was going down the gurgler. You'll either wait years to see even a small part of your money, or never see it at all.

Instead all bank depositors take a haircut - say 10% but that means you get most of your money out.

What would you choose?

[jonbuoy]

Just for the sake of clarity, nobody has become rich from the GFC. There might be a few counter-cyclical investors who did well but they are rare.

When the world economy was booming, bankers flourished as did some fund managers. When the GFC hit many of them ended up on the street. No job. No gold. Nadda. A few at the top survived.

The whole point of the GFC is it hit the well-off as hard as the rest of us. The difference is they had stuff they could sell to get by.

The money lost in the GFC is gone. That is why a few of the big economies are printing money - to replace what was lost - but it is a desperate move. It will all flatten out someday possibly 2018.

Yup. A fair few of the booms instant bilionaires have lost everything (everything being a relative term when your a billionaire, they will still be comfortably well off). A lot of multi millionaires and billionaires dont actually have that much cash. Its all tied up in investments and assets- being worth a billion on paper doesnt mean you have a billion in the bank. If you were to theoretically liquidise all your assets (house, car, home contents) you would be worth a lot more than you have available in cash.

Dont get me wrong - No one is feeling sorry for the poor billionaires that have been hit hard but they have been hit- its all relative.

[swbarnett]

Instead all bank depositors take a haircut - say 10% but that means you get most of your money out.

As long as the wankers that managed the bank into crisis are out on their ear with not one red cent of golden handshake. I don't see that happen.

Part of me would rather see the banks collapse. The whole system is flawed and doomed to failure anyway.

[jim.cox]

What would you choose?

1: gold - the real stuff, in my hot hand, not dodgy paper certificates from some company

2: land - but only if not mortgaged

3: timber - a "growing" investment

works for me

[BMWST?]

isnt this how it is supposed to work anyway?Ie the bank lensds you some money cos they actually have some money to lend.Not some speculative thing that its all just figures written on a balance sheet?

[mashman]

The money lost in the GFC is gone.

Where did it go?

[Zedder]

isnt this how it is supposed to work anyway?Ie the bank lensds you some money cos they actually have some money to lend.Not some speculative thing that its all just figures written on a balance sheet?

Not under the Fractionalised Reserve Banking system.

[Zedder]

Where did it go?

Into the banking system version of IOUs etc.