51–60 of 74 posts
Ah well if Italy is doing it, we all should. They manage their economy famously well. Do the banks get a "windfall subsidy" when they have bad years?
"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…
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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…
Discussed here as well:
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.
Everyone I know is going without due to rising costs in everything, but some how banks are making record profits.
Tax the life out of them.
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> 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?
I have a great example of it! In 1759, Arthur Guinness signed a 9,000 year lease for his brewery. https://www.historydefined.net/how-the-guinness-brewery-sign...
> Guinness actually doesn’t pay any rent for its iconic St. James’s Gate Brewery in Dublin. That’s because the site has been owned by the Guinness family since 1876, and the current lease runs until 2031.
From 1759 to 1876 is 117 years.
FWIW, as far as I can tell, a 9,000 year lease would have conflicted with the rule against perpetuities. Certainly Cadell v Palmer (1833) set the limit as "lives in being plus twenty-one years[1]" and I gather from https://www.lawreform.ie/_fileupload/Reports/rRuleAgainstPer... that something similar have applied in Ireland at the time of Guinness, certainly by 1833.
As an interesting observation, Arthur Guinness II lived 1768-1855 and 21 years later is 1876. I'm now curious about the actual text of the lease, but I can't easily find a copy online.
[1] For the life of a person currently alive or in gestation, and for 21 years after their death. See also https://en.wikipedia.org/wiki/Royal_lives_clause with a recent notable use in the US at https://en.wikipedia.org/wiki/Central_Florida_Tourism_Oversi... .
so.... if banks make "super profit", doesnt that imply they managed to gouge customers by charging them excess % on their loans and fucked depositors by giving them less % on their deposits?
What has happened across the banking sector is that net interest margins have improved because rates charged on loans have moved up more quickly than rates paid on deposits. That might yet be offset by higher credit losses but it's too early to know. In any case, it's expected that deposit rates will catch up (in fact they already are starting to) and net interest margins will continue to shrink a bit from where we a…
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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…
There have been significant windfall taxes before and (in my country (UK), at least) I can't recall any disastrous long term indirect effects.
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What does that have do with Religion? Most banks everywhere behave the same way..
Islam forbids interest, so religion kinda has something to do with banks. But capitalism uh.. finds a way
the way "islamic banking" was envisioned, they created a problem then suggested an alternative which is the same thing, just with arabic names.
there is something called "shariah compliant banking" but "islamic banking" on its own is a misnomer and doesn't exist.
don't believe me, here is a video of Dr. Mohammad Shahrour on the subject.
https://www.youtube.com/watch?v=dEk_8-jaSUs
its really short but brings home the idea.
your next question might be "so...whats islamic banking then". the answer is simple. when you can't fight in a free market so what you do is change the market so that customers automatically opt for your "superior" product as opposed to the competition.
You can read up on this by finding "why need for islamic banking" arose. the problem didn't exist till then so someone just literally invented it and then sold a solution