BAILING OUT AILING BANKS IS IMMORAL/CRIMINAL
Erle Frayne D. Argonza
Good afternoon, fellows!
Bailing out ailing banks with people’s money (taxes) is immoral and criminal. I have already stated this contention in previous articles, and I’d re-echo it again in light of the financial fiasco going on in
We’ve had more than enough bad experiences in past crises that point out to massive speculative engagements by banks that have contributed to economic downturns and crash.
started the ball rolling by salving big banks with taxpayers’ money in the
1990s, and this practice is awefully wrong and immoral. Japan
Fast forward to the year 2007, when we saw big banks implode as the bubble economy of the
burst. The same ‘Japanese solution’ at salving ailing banks with taxpayers’
money was again repeated, this time in the USA . USA
Taxpayers’ money is hard earned revenue for the state for purposes of advancing the general welfare. The priorities for revenues should be infrastructures, social services, pump priming, and ensuring ‘safety nets’ for the marginal classes and groups against the impacts of financial volatilities on the productive sectors.
The solution to ailing banks lies in strengthening regulatory mechanisms. The first agenda on the line is to ban banks from engaging in speculative engagements notably those hedge funds operations. Another agenda is to institute good corporate governance and instilling public accountability by the banking sector.
Bailing out ailing banks in
Europe, through taxpayers’
money, can only mitigate the systemic crisis for a while. Also, it will push
more folks down grinding poverty due to austerity measures. It is part of the
‘rule of madness’ that now governs ‘late’ capitalism as a whole.
[Philippines, 07 June 2010]