Banks - The rot set in years ago.

Much has been said about the problems with the banks and I shall add my bit here.

The problem that is hitting the system is that of bad debt, debt racked up by people here in the UK over years and years. The concept of bad debt is quite simple monies owed that the lender has no chance of getting back. 

The arguement that this is all due to Americans is both wrong and used to cover up faults in our banking system. Yes the American sub-prime market was hit hard and we have a similar problem if a bit smaller over here. Blaming Billy-Bob of Kansas for non payment of his mortgage is a lame excuse and fails to address our problems at home.

However throwing money to part nationalise the banks will in the long run not work. The problem is that if the banks current business model actually worked they would not be having to go to PM Gordon Brown and ask for help. Therefore throwing money at them is a delaying action at best.

Gordons bank re-capitalisation plan to compel banks to extend even more credit to householders and mortgages, which is exactly how we got into the huge mess we have now.

Oh and since when has government ever been shown to be any damn good when running a business?

Having worked in the banking/finance sector for some years I saw the change slowly happen as "advisors" employed in UK call centers became out-sourced to India and had their jobs changed bit by bit to that of sales staff in all but name.

The job became that of keep the call times down = more customers = more money. Less to actually advise, less training on advising and more on selling crap, unwanted crap at that. Promote products = sell sell sell! No matter what the customers needs there was always something according to the call review that we staff had, that could or should have been sold to said customer.

I have a fond memory of when I told a customer that he did not need to re-finance and sure as hell did not need to be fiscally raped by added protection payments on top of that, I landed myself in a world of shit. Quite how can one advise when one has to sell?

I have seen customers who have been re-financed and re-financed again, who cares if they can ever pay back that money - or if when said customer dies/becomes unemployed/does a runner that it can even be collected in full or even a large part of said monies-  as its all debt that can be shown on a nice power point presentation at board meetings and looks like the bank staff are doing their job pushing products/debt. 

Banks see that as a potential problem but take the risk anyway.

We have people here in the UK, who see nothing wrong with debt, not a few quid on the overdraft or a credit card for Christmas mind you but fucking tons of the stuff. First up we have the mortgage, then the re-mortgage, then another and a re-finance -shhhhhhh don't mention negative equity - and the cards to juggle the payments with as well. Deck of cards about to come down....

Not just a US problem I have seen banks massage figures, stats and push loans to get sales (and staff bonuses) and lets not let the fact that they are in fact pissing away the banks money get in the way....

Lets also remember that house prices have fallen somewhat of late, that a lot of re-finances are done on the previous value and have fuck all relation to the real world. Yep a common trick, punter buys a house for £100K, cost today say £70K but gets a re-mortgage on the £100K value.

Yes I did it, after all if you did not you ended up out of work and well one has to eat, but eventually I upped and left the rotten system.

Been a fucking hard slog for the last few years but fuck it at least I can call them all a bunch of cunts and earn an honest crust now without fucking anyone over in a fiscal sense of the word.

Now I dont suggest that we go back to the days that credit was something you got after taking time off work to see Mr Bank Manager(they were all Mr in those days) and crawling on bended knee whilst he sat their smoking his pipe and deciding if he was going to loan you some of the banks cash an if he said no, well that was it. 

That would be damn near impossible due to internet banks, millions of finance companies, brokerages, even the local supermarkets offers financial products now along with the baked beans.

So we have a system where anyone and I mean almost anyone can get money. No job, no income and no assets well take a read of this: http://en.wikipedia.org/wiki/Ninja_loan#No_Income_No_Job_No_Assets

Typical example is students, get the fuckers young and all that. Banks cream their corporate pants at students, seriously. They walk in student loan in hand - which is another form of debt - and its free this, free that, free the fucking other. 

The banks also know that should it all fail, mummy and daddy will often bail young Tarquin or Louise out.

Now for the news its not free - nope they are loaning money - in a word more debt. The arguement is that if the banks can get them young they keep them for life. And a bigger horse cock arguement you will never hear. In my parents day you may have put up with shit service and being talked down to, now you stick up two fingers and sod off out the door.

All fine if said student finishes course and gets a decent job, but a lot dont and a lot are pushed onto makework courses in fuckwittery by HM Govt.

For years we have under both first The Tories and now under New Labour encouraged debt, the have it all now, the attitude of they have it I must have it as well attitude. 

On benefits? Need a widescreen TV? Well you can get one, sure its a bank loan and in a few years Bastard, Cuntwaft & Co, Registered Bailiffs will take the telly back on behalf of the bank. But the banks shrug, blather on about "personal responsibility" and walk away. 

Debt is a growth industry, just look for example at the consolidation loans. Take all the small debts an have one easy payment. Problem being it has strings and interest attached, plus sometimes other fees etc in the small print.

Yep, the cost to the nation is huge, piss poor lending plans to companies who are already over extended where the assets are worth shit compared to monies owed. Houses re-possessed by banks and so many debts against the property that even if the house prices were not in decline they still would be tens or hundreds of thousands of quid down and so it go's on.

Take a look when picking up the mail to see quite how many companies are selling debt and believe me they will lie their arses off to close the sale, FSA be damned. Hell even if they get caught, well so what? A fine and slap across the wrist, big deal!

Turn on the TV and its companies offering loans, consolation loans, home owner loans (re-finance and new loans secured on the home). 

The levels of debt can only be guessed at, as for government figures I take them with the proverbial pinch of salt but it is a massive problem running into billions and this is just the UK.

The more people who lose their jobs, the higher the percentage of people who can not pay off said debt and who are so over extended that even if the bailiffs clean them out the banks/credit companies will never recover their monies, oh and they know this as well.

Gordon has offered the banks moneys(our money) to prop up corrupt organisations carry on doing business as before, that is to loan us what is now our money at a higher APR%. This will only make the situation worse, better in the short term but worse later on as debt levels soar.

A return to responsible lending, rather than massaging of facts on applications and giving token lip service to it on the part of banks.

Then we have the FSA, the organisation to look after the interests of the banks and customers. In short a fucking useless talking shop that does bugger all of worth and failed fucking totally to spot all this credit crisis shit on the horizon. Well done sirs at the FSA!

Oh as for their exam which you need to pass to offer financial serivces, well its a piece of piss. A retarded monkey could pass it, maybe that explains why Alistair Darling is Chancellor?...

Still loan the banks a few billion, shore up the feelgood factor, let people borrow more for tomorrow never comes and all that. Sod the economic facts that we have over spent, over borrowed, pissed away trillions as a nation.

We as a nation are in serious fucking shit and our politicians play at picking points off each other in some childish blame game.

Either that or fawning over the govt and ignoring the fact that its business/personal debt that needs to be tackled as well as the culture by finance companies/banks of hawking credit(debt) to people who can not afford it but want it and the live now fuck tomorrow life at all costs.

Gordon Brown a man who makes me so angry I could punch his lights out

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