“How can you not have insurance?”
“Because I spent my money on the Clapco D29, the most impenetrable lock on the market today. It has only one design flaw, the door must be closed!”
Banking cycles perfectly normal part of economics
Bankers have been through the mill recently, and it might appear that worse news follows bad news, but in actuality, the banks can’t really do a lot worse than they are doing at the moment.
What the public needs is to regain confidence in the financial sector, difficult when those bankers involved have such a bleak outlook themselves.
Banking like any other business follows the natural ebb and flow cycle of economics, although to see the bigger picture it is important to step further back. In any market, prices drop, but they always eventually rebound to a stronger level than they were before.
Cycles such as this are perfectly normal in economics, and well known to the bankers. The sooner we accept that this is just a normal part of economics and stop whingeing about how much trouble the banks are in, the sooner the economy can get back on its feet again.
Some criticism has been levelled at the over enthusiastic UK press. That they have not helped matters with their over zealous reporting of bad news, which has dented confidence in the financial sector and left people feeling bad about the country’s future prospects. It’s understandable that people want to be kept informed, but when millions of people are informed about such a ‘fact’, if it wasn’t true beforehand, it certainly is afterwards
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