Banking crisis

Saturday, October 4th, 2008

Do you understand this banking crisis for I am damn sure I don't. OK, I understand the 'sub-prime thing' which I take to be the lending of money to people who really couldn't afford to pay it back. Well, that's happened from time immemorial and the only difference is the scale of it in recent times. But surely, all these bank's assets are not in that segment of the market?
And then look at the scale. One day, the bank or the building society looks OK and the next it shouts that it needs millions or billions to stay afloat. How can you run a business like that? It's like you and me saying that you are OK today and then tomorrow saying you need a quarter of a million just to get by.
And another thing. In all this, have you heard of any banking managers getting hurt? No, as usual, it's the poor bloody infantry.
Well, I don't have a shred of a solution. Bring back the stocks I say and pelt the culprits with rotten tomatoes in the town square.