100%borders wrote: ↑26 May 2025, 20:33It highlights a contradiction between free-market ideology and government intervention in financial markets. You are correct as Capitalism advocates for free markets where businesses succeed or fail based on merit, competition, and risk. However, when governments intervene to rescue failing banks—effectively socializing their losses while allowing private profits to persist—it undermines the principle of market discipline. As the last 3 paragraphs tell us , the extreme cost to us , the Taxpayer has led to years of Government Austerity .milly wrote: ↑26 May 2025, 19:47That's not Capitalism, the Bankers should've been jailed.borders wrote: ↑26 May 2025, 19:24This is from the Guardian today .....Capitalism at work….whilst workers are squeezed and OAPs and disabled are targeted the elites lap it up so they really are laughing all the way to the bank….There are many reasons why this Country is in Decline , this was a massive burden , just read the last 3 paragraphs...... yet some people on here are fixated ....
Fred “the Shred” Goodwin, the disgraced ex-boss of Royal Bank of Scotland, is estimated to be receiving an annual pension worth nearly £600,000, as the government prepares to declare a £10bn loss after selling its final stake in the bank as early as this week.
The banking group, now known as NatWest, is expected to return to full private ownership within days, drawing a line under a £45bn state bailout that saved the bank from the brink of collapse at the height of the 2008 financial crisis.
The 17-year effort to off-load the government’s 84% stake in the lender has come at a substantial cost to the public purse, with the government expected to fall short of recouping its financial support.
By the time of the bailout, Goodwin had expanded RBS into 50 countries and grown its assets to £2.2tn – more than double the size of the UK economy that year. Had the government failed to step in, shock waves from the bank’s implosion in 2008 could have led to a systemic collapse in the wider economy.
The government was concerned that its failure could wipe out the savings of everyday customers, and prompt panic about the health of other lenders across the UK, creating a domino effect of failures across the industry.
The bank’s eventual emergency rescue made Goodwin – now 66 years old – a lightning rod for public anger over the cost of bank bailouts, which led to years of government austerity that many blame for hollowing out public services across the country.
NatWest’s current chair, Rick Haythornthwaite, said last month the bank was indebted to the public for keeping the lender afloat.
“We remain incredibly grateful to the government, and to UK taxpayers, for their intervention and support, which protected millions of savers, homeowners and businesses at a time of global crisis,” he said at the bank’s AGM in Edinburgh.
Western Governments Socialised the losses and privatise the gains.
Any crisis or perceived crisis is used to funnel taxpayers money to the wealthy.
All they have to do is make the crisis sound as if it's for the greater good and most of the public go along with it.