The Clearest Explanation of the Cause of Financial Crisis : Fri Nov 09, 2012 12:23 pm  

Adair Turner, the chairman of the UK’s Financial Services Authority, member of the BoE’s Financial Policy Committee and one of the top candidates to become the next Bank of England governor - “The financial crisis of 2007/08 occurred because we failed to constrain the private financial system’s creation of private credit and money.” and . . . "The banking system can thus create credit and create spending power – a reality not well captured by many apparently common sense descriptions of the functions which banks perform. Banks it is often said take deposits from savers (for instance households) and lend it to borrowers (for instance businesses). But in fact they don’t just allocate pre-existing savings; collectively they create both credit and the deposit money which appears to finance that credit.Thus banks can create credit and private money." http://www.positivemoney.org.uk/2012/11 ... al-crisis/ Still never heard a mainstream politician talk about this as a cause for the financial crisis. Until they acknowledge the root of the problem we can rest assured their attempts to save the economy will only make things worse.

Adair Turner, the chairman of the UK’s Financial Services Authority, member of the BoE’s Financial Policy Committee and one of the top candidates to become the next Bank of England governor - “The financial crisis of 2007/08 occurred because we failed to constrain the private financial system’s creation of private credit and money.” and . . . "The banking system can thus create credit and create spending power – a reality not well captured by many apparently common sense descriptions of the functions which banks perform. Banks it is often said take deposits from savers (for instance households) and lend it to borrowers (for instance businesses). But in fact they don’t just allocate pre-existing savings; collectively they create both credit and the deposit money which appears to finance that credit.Thus banks can create credit and private money." http://www.positivemoney.org.uk/2012/11 ... al-crisis/ Still never heard a mainstream politician talk about this as a cause for the financial crisis. Until they acknowledge the root of the problem we can rest assured their attempts to save the economy will only make things worse.

Re: The Clearest Explanation of the Cause of Financial Crisi : Fri Nov 09, 2012 1:09 pm  

This is amazing, I cannot believe no one has ever mentioned this on here before.

Re: The Clearest Explanation of the Cause of Financial Crisi : Fri Nov 09, 2012 1:15 pm  

Sandra The Terrorist wrote:

This is amazing, I cannot believe no one has ever mentioned this on here before.

Shocking, isn't it?

I blame this lot:

Re: The Clearest Explanation of the Cause of Financial Crisi : Fri Nov 09, 2012 1:51 pm  

Sandra The Terrorist wrote:

This is amazing, I cannot believe no one has ever mentioned this on here before.

What's even more amazing is that Mervyn King didn't spot it.

Re: The Clearest Explanation of the Cause of Financial Crisi : Fri Nov 09, 2012 1:57 pm  

Has the opening poster ever commented on anything else?

Re: The Clearest Explanation of the Cause of Financial Crisi : Fri Nov 09, 2012 3:19 pm  

LeighGionaire wrote: Adair Turner, the chairman of the UK’s Financial Services Authority, member of the BoE’s Financial Policy Committee and one of the top candidates to become the next Bank of England governor - http://www.positivemoney.org.uk/2012/11 ... al-crisis/ Still never heard a mainstream politician talk about this as a cause for the financial crisis. Until they acknowledge the root of the problem we can rest assured their attempts to save the economy will only make things worse. LeighGionaire in 'thinking an economist is backing him up because he misunderstood what he is saying' shocker. Adair Turner wrote: Could we ever practically move away from factional reserve banks, and if we did, would it be desirable to do so? Well my answer is still no. Instead of reading the out of context quotes on biased websites, why don't you actually read the sources you claim to support you. This is the second time in just over a week you've quoted a source who fundamentally disagrees with you! He states (on the very first page) that he is in favour of robust regulation of the financial system, not a complete destruction of the fractional reserve banking system.

LeighGionaire wrote: Adair Turner, the chairman of the UK’s Financial Services Authority, member of the BoE’s Financial Policy Committee and one of the top candidates to become the next Bank of England governor - http://www.positivemoney.org.uk/2012/11 ... al-crisis/ Still never heard a mainstream politician talk about this as a cause for the financial crisis. Until they acknowledge the root of the problem we can rest assured their attempts to save the economy will only make things worse. LeighGionaire in 'thinking an economist is backing him up because he misunderstood what he is saying' shocker. Adair Turner wrote: Could we ever practically move away from factional reserve banks, and if we did, would it be desirable to do so? Well my answer is still no. Instead of reading the out of context quotes on biased websites, why don't you actually read the sources you claim to support you. This is the second time in just over a week you've quoted a source who fundamentally disagrees with you! He states (on the very first page) that he is in favour of robust regulation of the financial system, not a complete destruction of the fractional reserve banking system.

Re: The Clearest Explanation of the Cause of Financial Crisi : Fri Nov 09, 2012 3:52 pm  

Can we please have a whip round to buy Legionnaire a new book this Christmas? Preferably on a different subject and one that he may have a hope of understanding. Thomas the Tank Engine perhaps?

Re: The Clearest Explanation of the Cause of Financial Crisi : Fri Nov 09, 2012 3:54 pm  

Cookridge_Rhino wrote:

LeighGionaire in 'thinking an economist is backing him up because he misunderstood what he is saying' shocker.

Instead of reading the out of context quotes on biased websites, why don't you actually read the sources you claim to support you. This is the second time in just over a week you've quoted a source who fundamentally disagrees with you!

He states (on the very first page) that he is in favour of robust regulation of the financial system, not a complete destruction of the fractional reserve banking system.

Just because his solution wouldn't necessarily be the same as mine we both agree on the fundamental problem at the heart of this crisis.

Anyway I'm still waiting for you to explain how the U.K money supply doubled in the last 8 years if banks don't create money when they give out new loans . . .

Re: The Clearest Explanation of the Cause of Financial Crisi : Fri Nov 09, 2012 4:04 pm  

Dally wrote: Can we please have a whip round to buy Legionnaire a new book this Christmas? Preferably on a different subject and one that he may have a hope of understanding. Thomas the Tank Engine perhaps? How about YOU buy any of these books instead http://www.positivemoney.org.uk/books/ and enlighten yourself instead of misguidedly sniping at me about a subject you obviously don't understand. You probably still think banks loan out grannys savings

Dally wrote: Can we please have a whip round to buy Legionnaire a new book this Christmas? Preferably on a different subject and one that he may have a hope of understanding. Thomas the Tank Engine perhaps? How about YOU buy any of these books instead http://www.positivemoney.org.uk/books/ and enlighten yourself instead of misguidedly sniping at me about a subject you obviously don't understand. You probably still think banks loan out grannys savings

Re: The Clearest Explanation of the Cause of Financial Crisi : Fri Nov 09, 2012 4:05 pm  

Dally wrote:

Has the opening poster ever commented on anything else?

Obviously you don't even read your own threads properly as I commented there before I started this one.