G8 / G20 Bank Bashing Unjustified: No Levy on Banks

The G8 meeting recently ended in Canada has once again showed populist trends by these leaders. They are looking to blame the banks once again for the financial turmoil around the world. Some crazy person has even suggested a levy on banks so that there is money for the next bailout. So they expect another bailout in 30 years time, so what, next time there should be no bailout.

The free market says if you fail let the next person do, if everybody was bailed out by governments, then what is the point of the free market. The bailout only signaled to the world, do not trust a Westerner, the gun is loaded against the upstarts, and the "big" rich guys have the government there for them. Having said all that, the financial crises is not caused by the banks, but what a rational person must question is the bailouts for failed institutions, and for failed talent, when better institutions should have been allowed to fill the gap, when better talent should have been allowed to fill the gap.

The banking crises was but the result of a long running awful economic policies by these very governments that seek to blame the banks. Banks have money and they must pay that money back to depositors. That they ended up doing silly and outrages things with depositors money is because there where no other viable investments in the respective societies. The policy of de-industrialization America and sending jobs out of America to other countries meant it was not competition that destroyed most of America's manufacturing industry, rather it was the transfer of this industry to other societies. Can somebody tell me where banks where supposed to put this money when income levels had become so lopsided and unequal in American society thanks to awful economic policy from Nixon to Bush jnr. Are banks to blame for real incomes that have not risen in 40 years in America, Banks where merely the end of a cycle that was defying logic, to bail them out was the sin, what was needed was a new type of banker, that new type of banker can not rise anymore because Bush and Obama firmly protected their masters. No matter what they say, no bank is really against this levy, the government is insuring their lack of talent for 10 generations to come, they now will be comfortable in knowing that the government will be there for them, for 10 generations they can pick and choose who they like, talent has never had anything to do with banking, mostly the economy is going up.

Let the free market be and bankers can reinvent themselves as a new fresh breed would have done, but obviously this was not allowed. The new type of banker would actually have relied more on knowledge and intuition rather than contacts.

Bankers are not to blame for this crises, misinterpretation of globalization and trade is the cause of this crises, wake up.

Next week we shall discuss the new banker who was about to rear his head but can no longer, as it is back to business as usual.

Bhekuzulu Khumalo