12-02-2012, 12:02 PM
31
Re: Jealous Bandwagoners
Originally Posted by Uncle Joe
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Its all to do with 'manners'. If one is brought up properly and taught good manners, then irrespective of one's wealth or lack of it one can conduct themselves properly in any mixed company. Many of these 'hooray Henrys' whilst they may have 'education' what they don't have, because they're either not taught it, or choose to ignore it, is 'good manners'.
12-02-2012, 12:34 PM
32
Re: Jealous Bandwagoners
Losos said :--And what is the moral of this long post - just that a loan has two parties, the lender and the borrower and both of them must act responsibly if we are not to see chaos in this world.Quite true, but the idea of banks isn't just to hold our money in their vaults, they are a business and like any business they have to take calculated risks to make money.
I think banks have to be regulated by law as to how much of our money they are allowed to invest, that way no bank should ever go bust again.
The only good thing about the banking crisis for saving investors, is that the government have guaranteed their money through the F.S.C.S. scheme up to £85,000 of per person money.
We have just had banking figures which look favorable at last, so our investment in RBS should gradually pay us back well long term, but only if banks are regulated properly.
12-02-2012, 03:28 PM
33
Re: Jealous Bandwagoners
Originally Posted by Wrinkly
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so our investment in RBS should gradually pay us back well long term, but only if banks are regulated properly.
12-02-2012, 04:32 PM
34
Re: Jealous Bandwagoners
I can't really disagree with what you write Losos.One thing though, in the 50's and 60's many of the mortgage lenders were actually Building Societies rather than Banks and operated differently from the Banks. They had strict rules and criteria about who they would risk lending money to and as you say you had to be worth the risk and very often be a saver witht the Society to get a mortgage from them. I have a recollection that when we had our first mortgage we had to save for a year with Leeds Building Society so we could obtain a mortgage from them. It was not Jo Public who lowered the standard and risk criteria for lending - it was the Banks - most of the Building Societies no longer exist. People were encouraged to buy their own homes - and some folks did not fully appreciate the responsibility of the debt they were taking on. I am sure you know that his happened in America as well as the UK.
You are right, it is a two way street - but I can remember a time when Bank advertisements for loans were actually saying "borrow what you are worth - not what you earn." Many people believed this.
12-02-2012, 09:59 PM
35
Re: Jealous Bandwagoners
Originally Posted by Aerolor
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I have a recollection that when we had our first mortgage we had to save for a year with Leeds Building Society so we could obtain a mortgage from them. It was not Jo Public who lowered the standard and risk criteria for lending - it was the Banks - most of the Building Societies no longer exist.
As a matter of interest the building societies did make profits but they tucked them away in the 'reserve' account so they were protected if any financial horrors hit the UK. For the older societies this 'reserve' account was a huge amount, had they still been around now that would have helped out don't you think
Likewise, if the UK still had the gold reserves we once did we would be much better off. That's the thing about gold, you can go two or more generations and never need it, but when disaster strikes you're glad you've got it.
OH still has her collection of gold jewellery, it's not quite big enough to save the nation but we both agree we'll never sell it unless we are really in the brown stuff which hopefully will never happen
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