Comments on: UK suffers from banks’ Darwinian hibernation http://blogs.reuters.com/great-debate/2009/01/07/uk-suffers-from-banks-darwinian-hibernation/ Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: A. Gabriel http://blogs.reuters.com/great-debate/2009/01/07/uk-suffers-from-banks-darwinian-hibernation/#comment-4868 Thu, 08 Jan 2009 23:01:00 +0000 http://blogs.reuters.com/great-debate/?p=1139#comment-4868 The year for canceling of debts is the seventh year, but it applies between Israelites, or “brothers.” My point was that if this ancient wisdom was followed, people would have a different approach to risk. There would be no debt bubbles when investors know all debts will be canceled every seven years, and no one would have to worry about being duped into long-term debts they can’t afford. Obviously, this would crash the economy if it was put into effect now; but when a giant Ponzi scheme collapses (not just Madoff–the whole system) there is a golden opportunity to go in the direction of serious solutions and preventive measures. Yet the systemic Ponzi scheme is increasing by multiples because nobody wants to lose money (understandable!) and are strategizing so that others, not them, will be the losers.

http://www.biblegateway.com/passage/?sea rch=Deuteronomy%2015;&version=31;

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By: Ronald Checkel http://blogs.reuters.com/great-debate/2009/01/07/uk-suffers-from-banks-darwinian-hibernation/#comment-4849 Thu, 08 Jan 2009 17:57:47 +0000 http://blogs.reuters.com/great-debate/?p=1139#comment-4849 Easier lending? ha ha that got us in this trouble to start with. Anyone who is having trouble getting money now should be saving more and buying less. To many want others to load up with debt to keep their own boats afloat, rather than producing something,(product, service or labor) that others with cash want to buy.

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By: markes http://blogs.reuters.com/great-debate/2009/01/07/uk-suffers-from-banks-darwinian-hibernation/#comment-4834 Thu, 08 Jan 2009 14:52:37 +0000 http://blogs.reuters.com/great-debate/?p=1139#comment-4834 The comment by Erin, whilst great for those with debt who have essentially obtained free money, so Erin if i was to borrow $500,000 from you, would you be willing to forgive that debt? Reset the clock as you say? That would be fair, lend me the money and I’ll sign up today.

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By: Loren http://blogs.reuters.com/great-debate/2009/01/07/uk-suffers-from-banks-darwinian-hibernation/#comment-4825 Thu, 08 Jan 2009 12:57:28 +0000 http://blogs.reuters.com/great-debate/?p=1139#comment-4825 Zam, the text you’re looking for can be found at http://www.biblegateway.com/passage/?sea rch=Leviticus+25
It appears that the debt forgiveness extends to all inhabitants of the territory controlled by the Israeli “state” (pre-modern).
However, some of the previous posters were slightly in error. The economic calendar established in Leviticus required a year of rest ever seven year, but debt forgiveness every 50. It should also be noted that the all land was to return to the original owners in the jubilee year.
While I suspect that a religious solution to the current economic crisis would be unpalatable in the current secular (letting alone some impracticabilities in the Levitican model) it would be interesting to consider the implications of adding checks and balances to the economic/social system that would reset conditions regularly. Sort of like having pre-planned “revolutions” to prevent real crises.

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By: Zam http://blogs.reuters.com/great-debate/2009/01/07/uk-suffers-from-banks-darwinian-hibernation/#comment-4794 Thu, 08 Jan 2009 01:52:26 +0000 http://blogs.reuters.com/great-debate/?p=1139#comment-4794 Gabriel:
“The comment by Erin brings to my mind the Jewish law that required forgiveness of all debts every seven years. If this was worldwide policy, this type of crisis probably could never happen.”

Can we see the full text of the law. Does it mean only forgiveness of debts owed by jews to non-jews?

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By: A.Gabriel http://blogs.reuters.com/great-debate/2009/01/07/uk-suffers-from-banks-darwinian-hibernation/#comment-4776 Wed, 07 Jan 2009 20:30:43 +0000 http://blogs.reuters.com/great-debate/?p=1139#comment-4776 The comment by Erin brings to my mind the Jewish law that required forgiveness of all debts every seven years. If this was worldwide policy, this type of crisis probably could never happen.

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By: Father Ignatius Brown http://blogs.reuters.com/great-debate/2009/01/07/uk-suffers-from-banks-darwinian-hibernation/#comment-4768 Wed, 07 Jan 2009 18:39:27 +0000 http://blogs.reuters.com/great-debate/?p=1139#comment-4768 It seems to me that government, corporate and personal balance sheets are shot to pieces. We need to rebuild our capital fast. The quickest way to do this is to cut taxes substantially (along with highly inefficient central government spending). There is no point in governments trying to help businesses (selectively – and consequently distorting competition) if at the same time they are crucifying them with high taxes.

Cut taxes and radically restructure the role of central government to focus on the bare necessities that the market cannot provide efficiently or equitably: defence, basic health care focused on prevention, core infrastructure and law and order – (education can be subsidised through vouchers which would drive improvements in service through competition and increase social mobility).

When people and companies are financially secure and are not being bled dry by the tax system they will start to spend – and more efficiently than any bureaucrat. A smaller, less interventionist state is necessary to avoid the policy mistakes of the past, which stem from the over-zealous desire of politicians to command and control what they do not comprehend.

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By: anton kleinschmidt http://blogs.reuters.com/great-debate/2009/01/07/uk-suffers-from-banks-darwinian-hibernation/#comment-4766 Wed, 07 Jan 2009 18:27:16 +0000 http://blogs.reuters.com/great-debate/?p=1139#comment-4766 Gridlock in lending markets is also a question of skills. Most of the “bankers” who presided over the recent lending free for all are marketing gurus. They dished out all manner of loans with little regard for good lending practice.

To get good lending flowing the banking industry needs to replace these marketing types with real bankers who understand what lending is all about.

Unfortunately good lenders are in short supply and much sought after

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By: Marleen http://blogs.reuters.com/great-debate/2009/01/07/uk-suffers-from-banks-darwinian-hibernation/#comment-4760 Wed, 07 Jan 2009 17:06:06 +0000 http://blogs.reuters.com/great-debate/?p=1139#comment-4760 I would say that governments artificially inflated the economies of the G8 countries by borrowing money they never intended to pay back from their own citizens and foreign nations. I would say if they stop lending, we should stop paying.

Also the socialistic trend of forcing banks to lend to everyone and not discriminate based on ability to pay is well meaning but ultimately harmful to everyone because we all pay in the end through bankruptcies of the banks, bailouts and things that are starting to happen now (i.e. extreme inflation).

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By: Sam http://blogs.reuters.com/great-debate/2009/01/07/uk-suffers-from-banks-darwinian-hibernation/#comment-4756 Wed, 07 Jan 2009 15:18:55 +0000 http://blogs.reuters.com/great-debate/?p=1139#comment-4756 “This isn’t an argument against state intervention — there really isn’t much choice — but we should be aware of its limitations and pitfalls.”

There is an argument aginst state intervention and it is very strong. THE STATE INTERVENTION IS THE PROBLEM, so it cannot possibly be a solution. Let the brainless bureaucrats, pawns of the fianncial system puppeteers, get out of the business of managing anything. Cut down the government and disband all the useless agencies and departmens. Get off the backs of the middle class, the only productive people in the economy. Kick out all the parasites. But you would not suggest that, would you, it will mean the loss of power for those who got us into this mess in the first place.

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