Fwd: Some Remarks on the Economy

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Subject: Some Remarks on the Economy
Date: Fri, 13 Mar 2009 08:10:53 EDT

Interest rates in Britain are at their lowest level since 1951, and in the States there is zero interest at present. There has been a series of corporate collapses and rescues. The British Government has had to bail out the Royal Bank of Scotland, Lloyds TSB and HBOS, plus Northern Rock and so on. The Bank of England has promised to provide equity to preserve the liquidity of the banking system, but this equity is not infinite. In the States Lehman Brothers filed for bankruptcy and surrendered 80% of its stock to the Federal Reserve in return for a 150 billion dollar bail out. Merrill Lynch also got into financial difficulty. Stock prices have fallen by about 60% in one year. I wonder who is responsible for such utter incompetence and utter irresponsibility, i.e. borrowing far too much and failing to pay debt. Reminds me of the incompetence in science which has led to meaningless physics being taught to students for a hundred years. I note that some bankers made negative headline news by taking large bonuses after being bailed out for bankruptcy. One banker was already on a sixteen million pound per year pension and took a rise of about half a million plus a year from the bail out. There is an investigation going on into this. Responsible companies such as Steriwave and ECE Tech have cut costs and are riding out the storm caused by irresponsible lending practices. In the aircraft industry it was found recently that counterfeit bolts have been used extensively in aircraft for years, breaching all safety regulations. This type of stuff indicates a lack of integrity that is widespread throughout society. Also in the newspaper industry there is a lack of ethical integrity as we saw recently in the gossip spread by the Western Mail. Society must punish such offences.

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