Tuesday, September 16, 2008

Do Not Rescue The Banks With Tax Payers' Money

As Lehman Bros joins the list of institutions facing the crunch which seems to be alternating between the two world powers – Britain and United States; one thing comes to my mind. And that is the issue of rescue.

When Northern Rock cracked in 2007 September, our government tried everything possible to save it and all the argument agreed that it surely need saving. At the last count, it was the tax payers’ money that was poured in. Regardless of different political party’s opinion, there seem not to be another option but saving. To achieve this, it was agreed by all key players that if not saved, the economy would fall into that crack. We concurred.

But what comes to my mind is about the profitable ones. I think that these banks make too much profit and shouldn’t ever crash. But if they do, should rescue themselves given that they make billions in profit and bonus and share with us. Yet, those profits are twisted from us through (over) charging, high interest, and every excuse to make us pay for every service.

My suggestion; government should NOT save any more of them. If they crack, let them use what they have made in profit to mend it. The people involved in these cracks have more money than all of us put together; and they rarely pay enough tax to cover what they earn.

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