Subj : Pedro S nchez is living m
To   : Boraxman
From : Arelor
Date : Wed Apr 06 2022 05:08:18

  Re: Pedro S nchez is living m
  By: Boraxman to Dr. What on Mon Apr 04 2022 07:39 pm

 > I disagree that "the market" will sort out the dodgy players.  It may for a
 > restaurant which poisons many, maybe, but for large businesses, no.  The
 > institutions which nearly brought down the worlds economic system in 2008 st
 > have customers.
 > 

For one thing, the 2008 crisis was as much the fault of end-consumers as it was
from big investment funds.

Finantial institutions were dumb when conceeding so many NINJA loans, but then
people taking NINJA loans because they wanted to go on vacation abroad are also
to blame. Heck, when the crisis showed its head up, banks stopped giving such
loans and the public here went angry because the bank was not going to fund
random junk anymore. This is so true that certain political parties made it an
electoral program to force banks to keep offering loans or outright socializing
the loan mechanisms.

On the other hand, dodgy finantial institutions still have customers precisely
because the government forces people to go through them. There are lots of
things you are legally forced to go through a bank for in Spain. If I wanted to
buy the four donkeys that live next village, I am forbidden from buying them
with cash.

However, it is ok that the government forces you to use these institutions,
because there is the implied promise they won't let the system fail [\sarcasm].
The government can always foce a big bank to buy a banrupt bank for 1 EUR and
everybody will be happy forever! (See Banco Popular's case in Spain).

My bank is a rural cooperative finantial institution, but getting into one of
those is not affordable for most people. Your regular Francisco is de facto
forced to get into one of those banks backed with government protection and
what does what the government tells them to do.

So yeah, not much a surprise here that lame banks still have customers since
customers are basically threatened into partaking.


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