Robin and his merry rabble

writtenbyQ4u By writtenbyQ4u, 15th Nov 2011 | Follow this author | RSS Feed
Posted in Wikinut>Writing>Columns & Opinions

The western world is heading towards recession. Many blame the government, more blame the banks. Should we not be taking some of the blame?

It's all their fault

The banking collapse that preceded the upcoming recession, has its genesis in the early nineties. Even before that, in the era of Conservative rule, the seeds for the present financial meltdown, were being sown.
The encouraging of all to own homes, a laudable plan, created the consumer generation. Before that time, the need of the masses to 'keep up with the Joneses' was only for the affluent few.
There was a time, as crazy as it may seem, when a colour television was not common in every household. It was also not unusual to be asked if you had a video recorder, when someone was considering lending you a film to watch.
The credit age changed all of that. Need a sofa? Buy now, pay later. Need a new television? Buy now, pay later. Need a new kitchen? Buy now, pay later!
The banks lent money, supported mortgages, encouraged borrowing. People shopped and shopped and shopped. Everything was good. Home prices went through the roof, new car registrations could not come out fast enough, the country was on the up.
But as even the least interested student of physics, economics or life knows, what goes up, must come down.
People began to believe the good times would never end. That included the banks.
The protests that have recently centred on banks are somewhat misguided. The reasons for the protests are vague; 'they' caused the recession, 'they' spent all our money, 'they' get big bonuses. Really?
Banks, as in business banking, lost money through greed, this is true, but they also gained money through that same practice. How do people think they gain interest on savings? The money is invested, by the banks, and the interest the investment makes funds the bank's business, part of which is paying interest on savings.
This is how banks operate. In more prudent times, they have invested more wisely, modestly. The massive losses that the media has sensationalised, are the less modest investments; risk taken by maverick traders or staff, trying to make a name for themselves. To make big money, some individuals were prepared to take big risk, hiding behind the name of their employers, the banks.
These have always existed. The investments were risky and could fail, but when they paid out, they paid out big. These sorts of investments only used to be available to the few; the super rich, that you would only read about in the Times rich list, wondering how they acquired such vast wealth. Some banks, rightly or wrongly, made them available to a few more, tempting them with promises of vast returns on their investments. For a little while it worked.
Unfortunately, for some to do well - really well - others had to do badly.
And now, after all the good times, the spending, the holidays, the education, the partying and avarice, it is has all ended. Now people gather outside financial institutions in tents, looking for a scapegoat. They wail about capitalism and bankers greed. It's all their fault, it's all their fault.
If they had taken a moment to stop and look in their bathroom mirrors this morning, they might have seen who was to blame.
We are all culpable.

Tags

Money, Protest, Recession, Scapegoat, Spend

Meet the author

author avatar writtenbyQ4u
I am a fitness instructor dreaming of being a film script writer. I tend to write - or rant! - about anything that takes my fancy.

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