When was the last time in history has tax payers “bailed out” banks?
Practically all day to day business is done through banks. The problem we have currently is that the entire banking system has been caught by an updraft with the problems of falling house prices. For the time period of 1997-2007, houses were growing in price exceeding inflation. That is, house prices were becoming too expensive. This has been kicked into relief, but someone has to bear the brunt of the price losses. And of course, that’s the banking system. An estimate of trillions of dollars of losses isn’t an inaccurate assumption. Till house prices fall back in line with inflation figures (they’ve still got a long while till they drop to the expected price) then banks are going to go under. And that means gigantic losses indirectly to the average citizen. Why? Because if a bank is declared insolvent, then all your savings, pensions etc are all in a black hole. So the government steps in, guarantees capital (money to get the system going) and therefore once the banks start making mon
