Dexia and other banks

Hat Tip: The Black Commentator

It is not as easy being a bank these days as it used to be.   And it will undoubtedly get much worse before it gets better.

Look at this nice collection of 5 links concerning the Belgium bank Dexia and stress tests at the blog Blasfémia (Hat Tip)

The banks in Portugal have with a few and one grave exception behaved nicely compared to banks around the World.  Particularly banks in the US and Northern Europe.  I am somewhat against saving banks with bank packages and public money.  If they are not healthy - let them go broke - specially when they have done casino speculation.

Banks used to be the pillars of society, with responsible conservative boards and bank directors with a notion of social responsibility.   This is no longer the case.   They have shown themselves to be champions of the old cardinal sins.  Greed is ugly indeed, and ugliness is now associated with everybody in banking and even more so in finance.  Deservedly or not.  There are many in the world of finance that deserved to be tarred, feathered and evicted from town.  Quite frankly, the world would be a better place without them.  It is shameful they will receive no punishment.

Looking at banking generally speaking, it would be rather dreadful if they all closed as they are part of very fabric of our society.  Many small savers would loose much and many companies would close.  On the other side, the argument that the banks provide capital for private endeavors such as company financing is currently not true.  The banks should thread lightly and assume an apologetic attitude.  We don't like you anymore!

We expect you to be responsible, to have less greed, to stop lending money to idiots, to stop speculating to the same degree, to stop gearing every deposited Euro into many fictitious.   We expect larger reserves.  We expect you to be an asset for society instead of a burden.  Because you don't really produce anything.  You just make money out of money.

See this rather old article from Financial Times:  Faith and finance: Of greed and creed

I am by no means a religious person; but I find it interesting that both the Bible and the Quran speak against lending money with interest (in the Bible's case arguably: excessive interest, usury and foremost in relation to the poor).
But take a look at the credit card circus.  The best credit card clients of the banks have maxed their cards, are paying late and lots of penalties.  Interest can easily reach 50% a year.  Enough, I suspect, for a Mafia money shark to be convicted.
Hint - if you have little money - get rid of all your bank cards, debit and credit.  Use cash.  It is quite easy to see when the wallet or money jar starts getting empty.  It will make your life better!