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If thats what you believe why are you so vocal in favour of this particular piece of exploitation? Strange.

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Capitalism is all about exploitation, as you know being a libertarian!!

 

As to my defence of the bailing out the banks, their simply was no choice, and as usual it would have been the poor that would have suffered more, if you had your way and let them go to the wall.

 

Still waiting for you to name some banks that would have taken on the debt mountain and bought the failing banks?

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Why do you keep on insisting it would be the poor who would have been affected most? The poor are most likely to have less than the £500000 limit for guaranteed savings so wouldn't be affected at all.

 

Read the link I posted. To make it easy for you go to page 53.

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The banks wouldn't disappear overnight. Be realistic, when any company goes into liquidation they don't just disappear, they have to be wound up in an ordely way with administrators appointed to ensure that the creditors are dealt with in a legal manner.

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Most companies that do go into liquidation do disappear. The administrators come in and try to sell the company, but as nobody would have touched a bank with the debts the banks had, they would have shut them and sold the property as it would have been the only thing of any value. Nobody Asp would have wanted to buy the banks with their bad debt mountain.

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Come off it Lt Kije, even you have to admit that banks have a lot of assets which would be very interesting to anybody looking for a bargain. You're talking as if the banks have negative value.

 

I gather from what you say that you still haven't bothered to read that link.

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No they didn't, they still had assets. And they now have the same assets and £billions of OUR money.

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their liabilities far outwitted the assets, and as all the big banks were in trouble non of them were in a position to buy any of the others out.

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Kije.... you don't get it do you.... when a company goes bust owing say £2 million and another company comes along and buys the assets of the failed company (buildings, shops, cars, stationary etc) the company buying does not inherit the £2 million debt of the bust company..... that goes, is lost, written off, call it what you will.

 

The only money that then goes to the failed companies creditors (if there is any left after HMRC have had theirs) is whatever they can raise from selling off the assets.... that's it. That's why the Blockbuster store at Westbrook is selling off all of its stock and even the shelves and display stands; to raise cash

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In most cases the company had shut, before the asset sale Baz, the bigger the dept the more chance of it shutting quickly, The liquidators are their to protect the creditors, So if the dept is going up they shut the door very quickly.

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so why do you keep saying that nobody would buy the assets and "good name" of a bank that has gone bust because they wouldn't buy the debt? There would have been no debt to buy

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Step 1 try to sell the business as a going concern, with debt,

 

If you cannot shut it down sell assets.

 

It was banks who held the debt of other banks, so one bank goes down, it cannot pay its dept to another bank (bad debt ) it knocks out that bank, which can no longer pay its debt to another bank. As all banks had bad debt the domino effect would have happened very quickly.

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Asp, as it says for normal business

 

The banks owed each other money, one bank was a creditor of another, One bank goes down and can not pay its creditors (which happens to be another bank). Can you see what would happen.

 

The system collapses, No government could let that happen, just think of all the institutions, councils, NHS that have money in banks, You must be able to see why they could not be allowed to fail. And must now be broken up so they can fail.

 

 

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It doesn't make any difference. If a bank becomes insolvent the administrator takes over just the same as any other company. Obviously you know more than the professionals Lt Kije. I'm surprised you don't open a financial consultancy and make yourself a fortune.

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Asp, my previous company did the pre pack trick, I suspect I know than you do. Companies with massive debt and a good chance of the debt going even higher are shut very quickly to protect the creditors

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I don't if it's been commented on but it was revealed at weekend that Barclays have 428 employees on salaries of at least a million pounds p.a. 

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,,, and made £6billion (or is that million?) in profits to shareholders, whilst paying out half that figure again,  in bonus payments.

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Asp, my previous company did the pre pack trick, I suspect I know than you do. Companies with massive debt and a good chance of the debt going even higher are shut very quickly to protect the creditors

I suspect you missed a couple of words out of your post but never mind, I get the gist. However, unless you were a member of the management team, I doubt you really know what exactly went on. The way the situation is dealt with depends very much on the circumstances and that is why the experts are brought in at an early stage. Politicians are rarely expert at anything other than picking pockets.

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