Thursday, 29 November 2012

EU propaganda: "Banking union: why it pays to get banks to play by the rules"

Here is a short article on the European Parliament (EP) website titled "Banking union: why it pays to get banks to play by the rules",
It's time to break the cycle. Banks' reckless lending helped to cause the financial crisis, leading to member states having to bail them out, which in turn caused countries to overstretch their budget. To prevent that happening again, experts call for a single supervisor of the banking industry, sufficient funds to deal with bank failures and a deposit guarantee for savers. On 29 November the EP's economic committee will vote on two reports on a proposed banking union in the EU.
No, member states did not have to bail out banks engaged in reckless lending. And to prevent that happening again you don't need a single supervisor of the banking industry. Whoever wrote this article is lying at best and it is nothing short of pure propaganda, in line with most things published and said by the EU propaganda machine. When a bank becomes insolvent, for whatever reason, you simply let it fail like you would do with most other businesses. "Having to" bail them out with tax payer money is wrong, it is theft, and it is faulty policy. It creates zombie companies, companies that do not deserve to be in business. Instead the EP and the EU is using bank failures as a political opportunity for even further integration. This can only make the economic situation worse. How come the eurocrats never mention this? Because it does not support their case of wanting more integration and more central planning. And where are the banks going to get "sufficient funds to deal with bank failures and a deposit guarantee for savers"? Probably again from the tax payers. Do take the EU bureaucrats seriously about what they say they intend to do, but never trust their arguments as to why.

No comments:

Post a Comment