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Little drops of water, little grains of sand, Make the mighty ocean and the pleasant land. Little deeds of kindness, little words of love, Help to make earth happy like the heaven above.

Sunday, September 13, 2009

Solution 1: Break up the banking system.

People debate about how long banks such as RBS and Lloyds should remain nationalised, and some people think that it will be sold off at a substantial profit to the taxpayer.

OK, every time I see"BANK" i think about the CREDIT CRUNCH. With the consumer credit and commercial real estate mortgage loan defaults increase, the financial system is suffering from a shock. That means banks don't have enough money, also, people decide to take their money from the banks, they don't dare to deposit their money into the banks.

Well, first i want to talk about the strengths of bank nationalisation. Under the governmental control, the advantages of creditors and depositors are being protected, the assets of the banks will be improved obviously, also it helps the financial markets to be stable.

However, we realize that to remake the banking system by the government must be a real ly tough progress, and how many operations which involved in the business will be damaged by the reorganisation during 10 years?

1 comment:

CoachingByPeter said...

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