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Forum Post: Take The Credit Card Away From The Government

Posted 2 years ago on March 26, 2012, 7:10 p.m. EST by Rebdem (71)
This content is user submitted and not an official statement

the government is spending to much and it is only going to get worse

watch and learn





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[-] 1 points by PublicCurrency (1387) 2 years ago

Take the credit card away from the "banksters."

Countries with government-owned banks have, on average, grown faster than countries with no or little government ownership of banks. . . . This is, of course, a surprising result, especially in light of the widespread belief—typically supported by anecdotal evidence—that ‘… bureaucrats are generally bad bankers’ . . . .

What accounts for their surprising findings?

Politicians may actually prefer banks not to be in the public sector. . . . Conditions of weak corporate governance in banks provide fertile ground for quick enrichment for both bankers and politicians – at the expense ultimately of the taxpayer. In such circumstances politicians can offer bankers a system of weak regulation in exchange for party political contributions, positions on the boards of banks or lucrative consultancies. Activities that are more likely to provide both sides with quick returns are the more speculative ones, especially if they are sufficiently opaque as not to be well understood by the shareholders such as complex derivatives trading.

Government owned banks, on the other hand, have less freedom to engage in speculative strategies that result in quick enrichment for bank insiders and politicians. Moreover, politicians tend to be held accountable for wrongdoings or bad management in the public sector but are typically only indirectly blamed, if at all, for the misdemeanours of private banks. It is the shareholders who are expected to prevent these but lack of transparency and weak governance stops them from doing so in practice. On the other hand, when it comes to banks that are in the public sector, democratic accountability of politicians is more likely to discourage them from engaging in speculation. In such banks, top managers are more likely to be compelled to focus on the more mundane job of financing real businesses and economic growth.


[-] 1 points by Rebdem (71) 2 years ago

so public sector banks work the same as Private sector because i like being paid to have my money in their bank.

[-] 1 points by Rebdem (71) 2 years ago

no one is interested in any of these things

[-] 1 points by Rebdem (71) 2 years ago

nope nobody is