Friday, 25 March 2011

Letter by Ralph Musgrave in The Northern Echo – Bankers.
I SEE The Northern Rock is offering 90 per cent mortgages again.

Wait six months, and it will be offering 125 per cent mortgages – exactly the policy which brought the bank down Government allows this reckless behaviour because it wants to sell off the bank shares it holds at a profit.

This so called “profit” is no different to the “profit” made by a second-hand car dealer who sells cars with dodgy brakes.

But the advantage for the Government is that it looks as though it has rescued banks without costing taxpayers anything. This charade suits the elite – London-based politicians and bankers.

The size of British (and American) banks has increased by a whopping ten times over the last 45 years relative to national income. And to what benefit?

All we’ve got is nonsense like 125 per cent mortgages, collateralised debt obligations and a load of other rubbish which nearly brought the world economy crashing to the ground.

Instead of allowing Northern Rock to return to the risky activities which brought it down, the Government should curtail the activities of banks, and just admit the truth that the credit crunch cost us dear.

Ralph Musgrave, Durham.

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