Comments on: Young paying too high a price over the failure to act on interest rates

By: CallerNJ

CallerNJ — Thu, 23 Apr 2015 13:15:04 +0000

The bank can generate a mortagage out of thin air, but at the end of the financial year they do have to show a certain capital base (partly your deposits from depositors) on the books. Otherwise why bother with all this Tier 1 talk.
So McWilliams is correct here. Recycle they do, it doesn’t just sit there waiting for the depositor to return some day to collect it.
Basically what he is saying here is that they work the money in whatever way (not neccessarily a mortgage, could be some other way) and in essence the depositor should get some sort of a return on the capital invested.
The return is so small in Ireland it is like your money isn’t even making the minimum wage in the world of deposit interest. IN fact due to inflation you are paying the bank to make money off of YOUR money. Better off investing it in something than let the bank have YOUR profits.

By: juniorjb

juniorjb — Mon, 20 Apr 2015 17:01:04 +0000

Of course, it hardly goes unnoticed that you have a particular soft spot for that class of rentier, for some reason (what could that be?). Post-hoc rationalisation, anyone?
BTW, to provide equal opportunities for all without concern for the outcomes, you would at a minimum be required to have a once-off equal distribution of resources to all parties. If the outcomes are to be regarded as fair the initial conditions have to be fair and free of inherited inequities. Funny how these breezy appeals to theory run aground when you think them through.

By: juniorjb

juniorjb — Fri, 17 Apr 2015 13:19:47 +0000

Having 3,5, 10, 20 buy to lets is hardly crumbs from the table?

By: juniorjb

juniorjb — Fri, 17 Apr 2015 13:16:12 +0000

I don’t disagree with you on the dominant role of banking interests. My argument is that you cannot use the opposition of financial elite vs. everyone else as an overlay that to paper over all the other conflicts as you seem to be suggesting. Some of the older investors we are talking about are a risk averse lot who bought cheap when prices were favourable, often on the back of secure public service jobs when few others could get a loan or are simply fortunate in having been born at the right time to find themselves with a small mortgage while riding a wave of rising wages (a situation which they deserve some credit for). What we have seen is a convergence of these interests with those of the banks and financial classes at the expense of the young. This isn’t a conflict we can safely ignore and it seems to me that David is on the money in emphasizing it. Government and banking policy is currently in favour of deepening this divide but not deliberately, more as the result of institutional capture by sectoral interests (financial, developers and landowners). I’ve been lucky to have the example of many people of the generation born in the forties whose exemplary work ethic helped create so much who nonetheless on moral grounds refused to partake of the buy to let frenzy because they would not buy housing out from under the upcoming generation to feather their own nests. We all have choices and must account for the foreseeable consequences at least.

By: Tony Brogan

Tony Brogan — Wed, 15 Apr 2015 22:07:06 +0000

“The individual is handicapped by coming face to face with a conspiracy so monstrous that he cannot believe it exists.” … J. Edgar Hoover – ex-FBI Director

By: Tony Brogan

Tony Brogan — Wed, 15 Apr 2015 16:43:13 +0000

It is too simplistic to say one part of the community takes advantage of another. But that is the way of mother nature. Each bird feathers its own nest.

The trick is to give each an equal opportunity not a guaranteed equal result.

looking at everything on a general basis one sees the deck is stacked by the favoured few who control the banking system. After that all is skewed against the rest.

This favoured few keep everyone one else busy fighting each other over the breadcrumbs falling from the table, too busy to see the real cause of the problem.

I am not interested in fighting you, but you regularly resort to name calling. I may criticize David as do others but we respect his person.

So bring on your solutions and let as see what you have to say as a resolution to the financial, and social inequities you see.

By: juniorjb

juniorjb — Wed, 15 Apr 2015 13:57:28 +0000

That’s too simplistic Tony. As it happens, in my neck of the woods, Chinese communities typically club together to fund the start ups of younger members looking to get a start in life. By contrast, I just had a conversation with an employee who has to consider moving out of town and cutting her hours because rents have moved beyond her means. This situation has arisen for various reasons but the division and antagonism are the outcome of real material circumstances that favour the interests of older investors over the young. You cannot understand history or society without a theory of antagonism and it is here that one of the fault lines rests. The theory of antagonism you offer is a convoluted mess that rests on an idealistic and unprovable theory of market efficiency with all agencies of government and the banks in the bogeyman role. The situation is far more riven than that and not as a result of some deliberate tactic. In fact it is precisely your ideology that is currently deployed in a pragmatic way to justify the intersecting agencies and interests that have brought this about. They additionally favour a theory of society and politics that denies the rifts and conflicts that necessarily divide us precisely in an effort to stall analysis of these facts.

By: Tony Brogan

Tony Brogan — Tue, 14 Apr 2015 15:05:17 +0000

Well I guess it is the result of the company being kept on this thread.

You talk as if the old and fortunate merely arrived that way. They all started of young and show what prudence and good management can do for their good fortune in later years.

The old and fortunate are a fine example for the young to emulate.

Many old and fortunate hand gifts to younger family to enable a start.

In North America and around the world one can see the the neighbourhood Chinese grocery stores in business in good times and bad. It is families and community supporting community plus a dose of hard work that leads to survival.

No bitching and complaining about the old and fortunate here. No divide and conquer evident in those places.

By: juniorjb

juniorjb — Tue, 14 Apr 2015 14:38:23 +0000

A very lazy argument Tony.

By: Tony Brogan

Tony Brogan — Mon, 13 Apr 2015 12:49:02 +0000

So what problem have you just solved with such a brilliant deduction. You are a typical result of the divide and conquer mentality. I have yet to a positive suggestion from you.