41–50 of 74 posts
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Yes, but we call them bailouts.
The "bailouts" where the government bought shares in the banks and was repaid at a significant markup a few years later? Is that like "windfall taxes" where the banks buy shares in the government and get repaid later?
If it helps society to be more productive in the long-term, yeah (in an indirect way)?
Already watered down to “ not exceed 0.1% of each bank’s total assets” https://www.theguardian.com/business/live/2023/aug/09/italy-...
That's a shame. They're absolutely terrified of knocking over the huge and comical house of cards, aren't they?
This feels like the type of thing that every single person will cheer on but will have disastrous indirect effects that are hard to understand.
Oh, please ... I know bankers in my personal network actively boasting about how they're managing to the play the situation with interest rates to maximise profit without doing anything productive to achieve it. "We've never had it so good" ... Next up, the energy sector.
With that said, I'm no different and I wish the same happened in my country. I am however aware that my feelings are short-sighted.
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In Europe banks give 2-2.5% on deposits these days while real inflation is in double digits, at least. When US banks give double the yield on deposits you know something's off.
That's not true. You can easily get, in Italy, over 4% on 12mo-locked saving accounts (random comparison website : https://www.confrontaconti.it/conto-migliore/miglior-conto-d... ), and Italy inflation right now is around 6%.
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It also implies a booming, healthy economy where more people want money to start businesses. Also, you can choose your tyrant. If the bank you're at offers you shitty deals, switch the bank. Nobody forces you to accept bad deals. By the way, do you have time to talk about this amazing money-doubling service I've created?
> It also implies a booming, healthy economy where more people want.money to start businesses Lol, have you ever been to Italy...? Banks will not lend to you unless you're quite rich already. Catholicism says debit bad , and the country is pretty conservative as a whole. Italian banks making money implies two things: them screwing consumers (famously called literally "available cattle", il parco buoi , in local finan…
Catholicism isn't about "debit bad", it is about "interest bad" and this only applies to catholics owning banks. Historically this has left jews in Italy running banks and abusing its citizens (that cattle, or more accurately "goy" in native language of those bank owners) just fine since centuries.
Please remember that the Vatican created its own bank (financial group) to escape the jewish monopoly on banks. Within the catholic circles you'd hear them now promoting Santander as catholic-friendly option in Europe for normal citizens to escape that monopoly. Money lending isn't an issue within European catholic groups as long as it avoids going overboard with interests.
Banks are technically private but won't be valued as much without government protection. So, to some extent, it's not wrong for the government to tax them more than other private companies.
However, a negative consequence of this tax it reduces the bank's incentive to lend money to small and risky companies/startups. This is equivalent to increasing capital gains to 40% - why invest in risky assets if I know I will ever only receive a small percentage of my profits (if any)?
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Oh, please ... I know bankers in my personal network actively boasting about how they're managing to the play the situation with interest rates to maximise profit without doing anything productive to achieve it. "We've never had it so good" ... Next up, the energy sector.
That doesn't change my point. Those bankers are probably equally unaware of the actual long-term effects this will have. What I mean is that there are no easy fixes for anything and I'm always skeptical of any action driven by populism. The politicians know that people only care about the first stage of effects. With that said, I'm no different and I wish the same happened in my country. I am however aware that my fe…
I think this is a slightly reductionist view, but the effect is the same and unpacking it here won't change anything.
In the least snarky way possible, can anyone think of an example where capitalism promotes or encourages long-term thinking?
I see some mentions of Spain and Hungary, what are the chances of contagion across governments? What about contagion to other sectors Oil & Gas? Retail players (P&G, Unilever, Nestle, Etc.)?
UK half-heartedly tried with oil&gas, the companies largely found ways to avoid it.
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"Emergency Economic Stabilization Act of 2008" - https://en.wikipedia.org/wiki/Emergency_Economic_Stabilizati... "Congress approves $700 billion Wall Street bailout" - https://www.nytimes.com/2008/10/03/business/worldbusiness/03... July 20, 2008 -> "...it's a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation..." - Henry Paulson November 20, 2008 -> "...W…
The US got paid back and then some. Not at all the same as an arbitrary ad-hoc tax on success. Should the Silicon Valley banks that have recently failed also pay a windfall tax? And if not, why tax success? Because it's clearly not a 'windfall' if it only goes to people that made good predictions and not ones that made bad predictions.
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That doesn't change my point. Those bankers are probably equally unaware of the actual long-term effects this will have. What I mean is that there are no easy fixes for anything and I'm always skeptical of any action driven by populism. The politicians know that people only care about the first stage of effects. With that said, I'm no different and I wish the same happened in my country. I am however aware that my fe…
> The politicians know that people only care about the first stage of effects. I think this is a slightly reductionist view, but the effect is the same and unpacking it here won't change anything. In the least snarky way possible, can anyone think of an example where capitalism promotes or encourages long-term thinking?
In 1759, Arthur Guinness signed a 9,000 year lease for his brewery.
https://www.historydefined.net/how-the-guinness-brewery-sign...