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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: elmatador who wrote (105318)3/29/2014 2:00:33 PM
From: Haim R. Branisteanu  Respond to of 219829
 
One of the reasons it is not working is China animosity toward Japan and China own economic problems and slowdown in growth.

The main problem is the fact that fractional banking is not working as bad loans are on the expense of the shareholder and not on the expense of the bank employees who make those loans for the sole purpose to increase their own income and the lending institution income.

If banking managers of all stripes would need to cover up loan losses up to the minimum wage in compensation, loan losses will diminish substantially and only businesses with real earning and widgets will receive the proper financing.

Best recent example is the $10 billion loan to Oleg Deripaska Rusal aluminium company. Wonder who will end up paying the loan.