Banks and bank bailouts

I am sick to death (and needless to say, spitting with rage) over the collapse of the banking industry, the politicians response to it and the media coverage of it. Put it this way - we're all to blame; the banks loaned too much money, we borrowed it and the politicians allowed it.

Greed and fear, fear and greed; of course the banks loaned too much money to dodgy borrowers. They were all in a race to the bottom. If your colleague is doing something that makes lots of money, you do it too. If your competitors are doing something that makes lots of money, you do it too. If you didn't, your shareholders would want to know why. Indeed, banks were harrassed by so-called "activist shareholders" who wanted to know why they weren't doing the very things that have got us into this mess. Hopefully Knight Vinke are hanging their collective heads in shame - but I doubt it. And now the banks have failed, the hypocrisy of their remuneration schemes is revealed for all to see. OK, in good times big bonuses. But in bad times, there should be sackings, disgrace and ignomony, not golden parachutes.

Greed and fear, fear and greed; we borrowed too much. We knew it. People getting equity release loans to spend on Mercedes and plasma TVs? It had to end in tears. Perhaps that's why we're so puffed up with rage at the bankers; we know in our heart of hearts that we're in part to blame.

Greed and fear, fear and greed; the regulators let all this go on. The politicians allowed the regulators to let it all go on. What politician is going to tell his electorate that the days of Mercedes & plasma TVs have got to stop for people's own good? Yet again, when we needed our politicians to do the right thing, they let us down. What use are they?

And as for the bailouts ... In what way is more (fictitious) money and more (real) debt a solution to too much money and too much debt? The politicians have spent our forebears money, they've spent our money, and now they're spending our children and grandchildren's money. There are not words to express the stupidity of this attempt to reflate the very bubbles that got us here.