So, public policy has been that the banks should be shovelling money out the door. Jeez lads, just lend to anyone. Please. Puhleeze!

So, they do.

The result has been a bonanza for banks as they boom at public expense, yet again.

The idea that we might need a new tax on banks -as was appropriate after 2009 – seems to be made by this simple fact that banks are capturing public money for private gain, yet again.

A booming bank tax, anyone?

Because they’ve done what we asked we should now tax them?

Given that this is Wednesday the Tuesday argument that there’s no inflation so there should be no rise in taxes doesn’t apply. We’ll wait until Thursday for MMT to be true again.

4 thoughts on “Good grief”

  1. Bloke in North Dorset

    Looks like we’re getting closer to the real reason Spud likes taxes – the green-eyed monster.

  2. Among many other limitations, Spud is not good at putting things in context. Financial press says

    first quarter results from Lloyds Banking Group (LLOY) were boosted by a dramatic improvement in bad loan provisions compared to a year ago when the first chill winds of the pandemic were blowing through the UK economy. Notably Lloyds’ mortgage book and customer cash deposits are both well up on last year.

    The Dunce of Ely has probably read something like this but doesn’t have the first inkling of what it might mean. For him it is just more of something to tax. Gordon Brown had a similar mentality

  3. For further context, Lloyd’s has a December year end and their Return on Economy for the last 4 years has been:

    8.1%
    9.1%
    6.3%
    3.4%

    In comparison, Río Tinto reported RoE between 20 and 30% for the same period. BT reported 31% declining to 18.6% in the last period. So to the list of things that Spud does not understand we can add the concept of the boom. Words fail me to describe the level of his intelligence and integrity

  4. Also credit card companies have been offering their wares as well. One thing gets me. Why has no one gone after them for not reducing their interest rates? They are the same as thirty years ago when inflation was much much higher.

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