IFS: Osbourne's cuts force a "fundamental re-imagining of the state"

[Mr Angry]

Originally Posted by heero_yuy

Oh contreau mon ami:

Most were low paid jobs taken by immigrants when the doors were thrown open. Hardly the high paid jobs that Ed Millibrain is referring to.

I think we'll have to agree to differ on that one.

The city of London financial sector grew at a rate never before seen (not a bad paying job by anyone's standards) and public sector jobs increased by in excess of 800,000.

Labour also introduced the minimum wage - which is not without it's flaws.

Quite clearly they created several million jobs and took steps to ensure that people were paid at least a minimum rate for doing so.

So if Labour are to take the credit for the Financial Sector creating so many well paid jobs, should they also take the responsibility for the problems caused by the growth, and subsequent crash, that came from the same sector?

[Mr Angry]

Originally Posted by Hugh

So if Labour are to take the credit for the Financial Sector creating so many well paid jobs, should they also take the responsibility for the problems caused by the growth, and subsequent crash, that came from the same sector?

What do you think, Hugh?

Be nice if someone took responsibility for it in reality responsibility lies with both main political parties as both of them were in favour of less financial oversight it was just labour in power that implemented it i remember many tories supporting it and some who didnt feel labour went far enough. Still never mind no one could have imagined how easy it would be to shift the blame for the global financial crisis away from the ones that caused the problem.

[Ignitionnet]

Originally Posted by Hugh

So if Labour are to take the credit for the Financial Sector creating so many well paid jobs, should they also take the responsibility for the problems caused by the growth, and subsequent crash, that came from the same sector?

Absolutely they can take responsibility for what they did with the BoE and the light touch regulation they applied. Gordon Brown's changes to tax relief on pensions likewise.

It is great to see so many lessons learned and solutions implemented by the existing administration.

Yes that was sarcasm.

Whenever I compare them I always have to refer to this. I don't need to mention the various policies aimed at propping up house prices and encouraging increasing private debt. Osborne's forecasts rely on an unprecedented private debt expansion, because clearly what could go wrong with that?

[Osem]

Originally Posted by Hugh

So if Labour are to take the credit for the Financial Sector creating so many well paid jobs, should they also take the responsibility for the problems caused by the growth, and subsequent crash, that came from the same sector?

What you mean take responsibility for the 'risk takers' they feted, doled out gongs to and failed to regulate effectively? Fat chance!

At least unravelling the extent of what was and has been going on is happening and huge fines are being levied on those institutions responsible for it. Brown was too busy spending all that tax revenue to be too bothered about where the money was coming from or listen to those insiders blowing their whistles.

http://www.independent.co.uk/news/uk...r-1622467.html

It seems he preferred to hear what this guy had to say:

James Robert Crosby (born 14 March 1956 in Leeds) was Deputy Chairman of the Financial Services Authority from January 2004 until he resigned on 11 February 2009. He had previously been the chief executive of Halifax Bank until its merger with Bank of Scotland to form HBOS, of which he was Chief Executive until 2006.[1] On 3 December 2012 Crosby was required to appear before Britain's Parliamentary Commission on Banking Standards.[2]

Crosby was knighted for services to the financial industry in 2006, but offered to renounce his knighthood in 2013 following the official report into the collapse of HBOS.[3] The Honours Forfeiture Committee considered his request[4] and his knighthood was formally cancelled and annulled on 6 June 2013.[5]

http://en.wikipedia.org/wiki/James_Crosby_(banker)

[Ignitionnet]

Originally Posted by Osem

At least unravelling the extent of what was and has been going on is happening and huge fines are being levied on those institutions responsible for it.

Except customers will be paying the fines, not banks.

People have committed fraud and the evidence proves it. They should be going to prison.

The coalition have utterly failed to fix the issues for much the same reasons as Labour did - they like the money too much.

[Mr Angry]

Originally Posted by Ignitionnet

Except customers will be paying the fines, not banks.

People have committed fraud and the evidence proves it. They should be going to prison.

The coalition have utterly failed to fix the issues for much the same reasons as Labour did - they like the money too much.

Yes, this is quite the thing.

The banks are paying fines with money we gifted them to bail them out. It's ironic that people can't see this.

Ultimately we are paying the fines and those in the financial sector culpable for fraud and financial skulduggery get off scot free.

You'd need to be pretty stupid not to see it for what it is. I mean what other industry could get away with admitting they conned people and set aside a sum of money, which they themselves determine, to pay back?

On that matter. If PPI was an insurance scam (which it certainly seems to have been) how come it's the banks who are paying back the money and not the insurance companies who supposedly were paid it?

QFT.

Those in charge, if proven to be culpable, should be prosecuted.

Those who authorised PPI, and all the illegal financial actions, such as using CDO's to finance non-prime mortgages, should be prosecuted.

[Ignitionnet]

Originally Posted by Hugh

QFT.

Those in charge, if proven to be culpable, should be prosecuted.

Those who authorised PPI, and all the illegal financial actions, such as using CDO's to finance non-prime mortgages, should be prosecuted.

Quite. The biggest danger to our financial system is the complete lack of moral hazard.

Telling a multi-millionaire that because they broke the law they are only getting a £400k base salary instead of £400k plus a huge bonus isn't exactly the most effective threat.

Angry - some PPI fines are being paid by banks as they sold them or, more accurately, mis-sold them. Insurance companies merely hoovered up the revenue once the banks had blagged the customers to collect the commission / introductory fees.

[Osem]

Originally Posted by Ignitionnet

Except customers will be paying the fines, not banks.

People have committed fraud and the evidence proves it. They should be going to prison.
The coalition have utterly failed to fix the issues for much the same reasons as Labour did - they like the money too much.

Shareholders too. In the case of some of the biggest banks you can add the taxpayer to the list since we own large chunks.

Looks like they might.