Over-borrowing is what seems to have created the current slump but instead of encouraging people to become savers the government is sending out the complete opposite message.
Our government is the biggest borrower at the moment but thankfully, regardless of this reckless action, people seem to be, sensibly keeping their money in the pockets and trying to cut their borrowing.
Perhaps the gov should let one or two of the badly behaved banks go down the pan and use the money they are throwing at the banks to pay the depositors back? This way it would send a clear message to the banks to clean up their act and become banks again rather than money launderers!
Borrowing is not sustainable and businesses should try to operate without the need to borrow. This would be called sustainable business growth and I believe that businesses that operate in such a way will be the ones that survive this recession/depression.
23 Jan 2009, 2:59 PM
Will there be any money left in the Kitty to pay depositors if any more banks get into trouble I wonder?
18 Feb 2009, 7:09 PM
No not at this rate! I say cut out the middle man and give the money directly to the public.
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