As we continue to face the worst economic crisis since the 1930’s, Europe looks like a conglomeration of conflicting ideas which can be traced back to the banks fighting over their future and also misconduct.
This crisis, which is worsening by the day, is causing turmoil in the people of Cyprus, Germany and Greece where termination of offshore banks, criminal charges being pressed have been done. Spain and Scotland have not been left out of the same with banks crashing and the public up roaring in disaffection. Several banks have been shut down, including Bankia of Spain with others on the brink of closure.
Banks: Who we thought not.
This has ruined the reputations of banks, from what we thought them of, as trustworthy and fair minded, to something else totally. Across Europe, a practice coined as ‘bankster’ has become rampant, whereby the bankrupt banks are using tax-payers money to bail themselves out of financial crises with countries like Italy falling prey to it.
Many European countries’ banks are deviating from their core business, to provide loans to organisations, businesses and people at reasonable interest rates. Many banks are going away from their job description. Loans are no longer on the table, interest rates are above the roof despite governments trying to control this. SNS Reaal of the Netherlands among others has let the state intervene to avoid its running into debt and dying off.
Sad News for the Citizens
The exploit by the profit-thirsty banks is here to stay. The continent may be taking a nose dive, one it will not come out of. This should however be a wakeup call for all. They should all know what role the government has in the financial sector. The citizens might have felt a tad bit richer due to the upswing in the loan business causing rise in house prices. Young graduates made a lot of cash. However, this recklessness of the finance sector became detrimental in the long run. The markets started to depress, with them dragging down the governments forcing them to have to salvage themselves at the expense of the tax payers’ money. This became the onset of the turmoil. The worst however was yet to unveil itself.