When Will Banks Become Banks Again?

The state of the financial system remains dire as the government prepares to chuck even more money at the banks. How much more money will we have to pour into these institutions before we get something back? So far the government has committed us to nearly £100 billion with every prospect that they will need to provide still greater guarantees. We are told that we cannot let the banks go bust but the money being given to them disappears into a bottomless pit. Almost all banks have vast hoards of toxic rubbish on their books and it seems that they are just using our money to get the books straight. I thought the whole purpose of the support given to banks was to get them functioning again as banks. Clearly that is not happening. Nobody can borrow money to finance their businesses, mortgages are almost unobtainable - unless you are so rich that you do not need one - and as everyone cuts back the economy spirals down and down. People are afraid for their jobs - so they spend less. Everyone is buying less - so some stores close. Other stores are selling less - so they buy less. Stores are buying less - so manufacturers cut back. Manufacturers cut back - so people are laid-off. People are laid-off - so they spend even less. And so on. If the government directly poured £100 billion into the economy in the shape of tax cuts, etc they really would give the economy a boost. At present we just pour the money into funds to compensate banks for their own incompetence and still we pay ridiculous salaries and bonuses to those responsible.

I was amused by the little cartoon above that I saw in an advert for Witan Investment Services. There are still some things we can laugh at.