Why We Save banks

Readers Comment (Rob Brown) from Bank lending standards: Surely the key difference between the banks and other firms is their broad base. If a bank goes bust not only do you lose those jobs but also, all the firms borrowing from that bank are in deep trouble and hence create further job losses across many industries, creating negative spiral throughout the whole economy. So whilst morally the banks may have been at fault the case for saving them is greater than general motors or vauxhall for example.

Yes, I agree, it is a good way of putting it.

In addition I would add, there is the issue of confidence. If people don’t have confidence to save in banks, banks will have no deposits to lend to new firms.

By on June 17th, 2009

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