21st Century Banking

10/04/2008 Human observations

Digby Jones, minister for British trade and investment, said … "It is easy if you have got 3 million population and a smallish economy -- it is a far easier decision to do that than if you are America, for instance, or Britain or Germany," he told BBC Radio. "If you ever guarantee anything, you have got to assume one day you are going to get it called. . . . It would be trillions and trillions of taxpayers' pounds involved."
So is the view from Europe, where the current economic crisis begins to loom large. Here in the states, such wisdom seems unappreciated. Raising the maximum balance of insurable accounts only tempts the unethical into more risky speculation. This current financial dilemma stands as living proof. The solution to economic instability is the ethical reconstruction of productive banking, with actual income used as a basis for extending credit. The smartest credit instrument in existence is the “payday loan”, where actual earned income serves as the Plan B for repayment. Such a device should be modified for use in new millennial business banking, to guarantee accountability and responsibility to the borrower; not the federal government.