TheBigShort
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Let me update what I previously said:
Banks are perfectly aware of additional obligations... but can't 100% predict the future (and neither can the person taking the loan).
There is an onus on the person taking the loan to understand their future plans where possible and to ensure they don't get themselves into a financial pickle.
There is absolutely an onus to react in some circumstances. Why should a bank care if the person they are lending to has a pension though?Yes, we will take that as a given.
But if the statistical data available to banks, is analysed in such form as to indicate increasing levels of debt, or increasing reliance on debt, or decreasing savings, or decreasing pension contributions or whatever, do you think there is an onus on the financial sector to re-act accordingly or do you think they should ignore all and carry on regardless?
Of course there is, just like there is an onus on the lender not to get themselves into a financial pickle, right?
But like you said, neither can predict the future.
So if you default, it probably won't make much difference to the banks in the greater scheme of things. But if defaults were rising and reflected in the broader population, and the banks, had information to hand that indicated stress points in personal debt (see rte report about mortgages being paid off past retirement), do you think that the financial sector and the central bank take any responsibility for the system that allows this to manifest? Regardless if you think it's a concern or not.
Yes, we will take that as a given.
But if the statistical data available to banks, is analysed in such form as to indicate increasing levels of debt, or increasing reliance on debt, or decreasing savings, or decreasing pension contributions or whatever, do you think there is an onus on the financial sector to re-act accordingly or do you think they should ignore all and carry on regardless?
So you want the bank to think for the borrower as well and that the borrower takes no responsibility for their decision to borrow the money. If they can't pay it back then its the banks fault.
There is absolutely an onus to react in some circumstances. Why should a bank care if the person they are lending to has a pension though?
Yes I do think the financial sector and central should address 'stress points' but only if they pose a problem to the sector. Why would they care if there are gaps in private pensions?
... problems may arise when the financial burden of a mortgage along with planning for retirement - two of the biggest financial assets that anyone can have - start to clash."
The centralised command banking economy
I'm not sure I would ever associate the words "honest debate" with the RT channel (formerly Russia Today). Yer man must be doing the rounds -- he was on BBC Newsnight the night before last, introduced as a Marxist. He got run out of town, even by the normally left-leaning Beeb.Professor of Economics, Dr Richard Wolff calls for honest debate about the (crackpot) capitalist system
https://youtu.be/zZtaJvzZev4
It must be great sport for socialists and communists to have the odd dig at capitalism.
when knocking something it is always reasonable to ask what the alternatives are and how these alternatives might be better.
The alternative to capitalism, which has lifted millions out of poverty, is a socialist/communist utopia which has only ever resulted in tyranny, corruption and poverty for the man on the street.
Luckily for us here in Ireland the people who advocate such a system are, rightly, in a tiny minority.
Those issues are mainly the result of government and State incompetence and cronyism and have nothing to do with a capitalist system.When hospital waiting lists, housing lists, mortgage defaults are increasing, when suicide rates are all time high, when house prices and rents are out of reach for ordinary working people, then the system is broken and it is unsustainable.
That's just hyperbolic nonsense. The USA abuses it's power and is economically imperialistic but, and this is the bit that matters, no country in history has ever been as powerful and abused it's power less.There is also another train of thought, with good reasoning in my opinion, that this system is sustained on the might of the US military industrial complex and its use of force around the world. Projecting the greatest tyrannical empire in the history of humankind.
Nobody poluted like socialist countries. The correlation between pollution and governmental system is that countries where the people control the government pollute less and the countries where the government control the people pollute more.As much as societies have prospered and developed under capitalism, it comes with a massive cost. In case you aren't aware, there is a train of thought, scientifically supported, that suggests that the capitalist system as currently modelled is responsible for an adverse change in the planet's climate with potentially disastrous consequences.
That's what a democratic republic does. The socialism but is incompatible with the freedom to trade and prosper.A true democratic socialist republic to enshrine the rights of each individual in equal measure affording the freedoms to trade, engage, assemble and prosper without fear or favour, in an ethically and environmentally sustainable way, is one other alternative.
See that's the problem with socialists; the way in which wealth is being generated has changed (away from labour and onto capital and intellectual property) so we need to change our taxation system globally to make it fit for purpose. You guys just want to keep the system we have but go nuts on the well off for ideological reasons. That's not a solution, it's just petty begrudgery of those who have more than you with no consideration of why they have more or the consequences of taking it from them.I have some ideas of my own of how that can be achieved, such as maximum income. On this site, that concept doesn't receive any support. Fair enough, but the point is that ideas need to be forthcoming and examined.
Those issues are mainly the result of government and State incompetence and cronyism and have nothing to do with a capitalist system.
The USA abuses it's power and is economically imperialistic but, and this is the bit that matters, no country in history has ever been as powerful and abused it's power less.
Nobody poluted like socialist countries. The correlation between pollution and governmental system is that countries where the people control the government pollute less and the countries where the government control the people pollute more.
the way in which wealth is being generated has changed (away from labour and onto capital and intellectual property) so we need to change our taxation system globally to make it fit for purpose.
Do you really think that Ireland, with the most "progressive" income taxation system in the developed world and 20% of the population living on welfare, is "ideological wedded to the concept of free market capitalist system"?Government and State incompetence and cronyism for sure, ideological wedded to the concept of free market capitalist system.
So you think that the USA should have invaded mainland Japan and cost a vast multiple of Japanese lives? Maybe you think they should have stayed out of the Second World War altogether? You think they should not have been part of the UN force which stopped a Chinese Communist takeover of Korea, with all of the country under the great ruler they have in the North? Vietham was France's mess which the USA got dragged into and screwed up. I agree on Laos, Iraq, Afghanistan. Cuba is a despicable and oppressive country.That is quite a statement. Where do we start? Hiroshima? Nagasaki? Korea, Vietnam, Laos, Iraq, Afghanistan, Cuba?
China is actually a great example; they are making a massive shift to Green and they are doing so because of pressure from their people who have more of a voice than ever due to their economic power.Seriously, the call was for an honest debate. Next you will be telling me that China is one of the world's biggest polluters because the communist government controls the people, and then tell me that China is great example of a country abandoning socialism and adopting capitalism
Were you ever in Eastern Europe before or shortly after the fall of the Berlin Wall? I was in Romania then and again a few years ago. The change is remarkable.Next you will be telling me that the increase in carbon emissions into the environment over last 50yrs has more to do with state controlled command economies rather than increasing economic activity associated with open markets.
Financial transaction taxes, patent royalty taxes, that sort of thing. They could only be brought in as part of an international agreement though.What would you propose?
Do you really think that Ireland, with the most "progressive" income taxation system in the developed world and 20% of the population living on welfare, is "ideological wedded to the concept of free market capitalist system"?
So you think that the USA should have invaded mainland Japan and cost a vast multiple of Japanese lives?
Financial transaction taxes, patent royalty taxes, that sort of thing.
Maybe just get trans-national corporations to pay the taxes they are meant to pay now.
Taxing the hell out of individuals or utter nonsense like maximum incomes it utterly wrong headed though.
Of course when knocking something it is always reasonable to ask what the alternatives are and how these alternatives might be better. The alternative to capitalism, which has lifted millions out of poverty, is a socialist/communist utopia which has only ever resulted in tyranny, corruption and poverty for the man on the street. Luckily for us here in Ireland the people who advocate such a system are, rightly, in a tiny minority.
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