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It’s a bonus.

28 Jan

The Royal Bank of Scotland are trying to spend money. They are very, very, very keen to give away over £900K.

I’d guess that at some point in your life you might have approached a bank for a mortgage, a loan or an overdraft. They are usually fairly keen to do so although they will be looking for some sort of security depending on how much you want to borrow or they will structure the loan so they get a lot of money in the form of interest from you as quickly as possible as you begin paying the loan off.

Of course you will also be familiar with the way in which banks will treat you if you hit a temporary liquidity issue. That’s what they call it when they go belly up. For us it’s a journey along the “charges” road, which can be difficult to navigate and get off. The banks are good at this. They charge you and then they charge you again and again and by this point you have less money than you had when you hit your own personal “liquidity issue”.  Before you know where you are you are paying charges on the charges you have been charged.

When the banks have liquidity problems they run to nice Uncle Mervyn from the Bank of England. He has loads and loads and loads of dosh and if he runs out he just prints some more. The banks take the money and they give nice Uncle Mervyn some of the laons they have on their books and everyone is happy. The banks carry on as before. Merv has performed a very worthwhile swerve for the banks and they don’t have to worry about charges per se.

Now, banks have to be run by very clever and good men or ladies for that matter. Fred the Shred was a very bad man. He made bad decisions. He got lots and lots of money for the work he did. He also made a lot of money for a lot of people for years as the share price for RBofS really took off but we’ll omit that because it doesn’t suit our purpose.

Now good egg and all round good guy Stephen Hester has taken over from Fred the Shred and has done such a terrific job that he was to get over £900K as a bonus albeit in shares rather than crisp £50, £20, £10 and £5 notes.

(I’d like to see him try to pay that into his own bank account in the RBofS. No printed pay in slip? Can’t be done. Fill in this form please so we know where you got the money. Do you feel like a criminal? Do the people behind you in the queue think you are a criminal? Money laundering in action? Welcome to the world of the RBofS). But I digress.

Call me Dave is having none of it. Ed Moribund says it’s George the moneys fault. George the money says it the fault of dear Gordon Brown and his little side kick Alistair who must surely be someone’s Darling although that takes some believing.

The MSM and the “righteous” are on the case. It’s a disgrace. The bank belongs to the taxpayers. Well no actually the taxpayers own the debt which is very different and not a great place to be.

Is there a conclusion to this? No. Is there a right and a wrong to this? Maybe. Probably. Yawn.

Truth is I’m loosing the will to live with all of this cleverly misdirected guff.

All of the banks played hard and fast with their financies. All of the banks are not interested in their customers, they are only interested in getting as much out of them as they can and then some.

Martin Durkin. You must have heard of the man surely? He made The Great Global Warming Swindle” and more recently “Britians Trillion Pound Horror Story”. He has a blog and his latest article argues that money should be privatised as in  having no input by governments, politicians or civil service types. It’s an interesting theory.

Let’s be honest here, could things be any worse than they are now? Probably yes but let’s not go there. Privatised money might be an interesting answer or worth a punt at least.

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