Why RBS should get little sympathy

I have to admit, I listened with great bemusement today to the news report that RBS bank reported huge losses again. It wasn't the fact that they reported the loss, it was the reasons that they gave for the losses and the fact that tried to make us feel sorry for them.

RBS has attributed the losses to two main factors:

1. The misselling of Payment Protection Insurance - well I sorry, but I'm not going to feel sorry for RBS for that! If I ran a business and missold a product or service, I'd most likely loses my business, would probably be fined and would possibly be sent to prison. So I think they have got off quite lightly there.
2. They had to right off £1bn due to the Greek crisis. Again, their own fault. Before investing or lending money to anyone you should always carry out proper due diligence. If they had, they wouldn't have invested in the bonds. It's not rocket science, you don't have to be an economic genius to work it out. Simply, look at the money currently coming in, look at the money currently going out, then do the same for the full period you want to lend the money for. If they can afford it - lend, if not - don't lend. Simple. And don't just rely on Credit Rating Agencies.

Greece bails out Euro banks again!

Yesterday's news, that Eurozone ministers have agreed another bailout for Greece filled me with more despair for the Greek people. Yet again, it is the ordinary Greeks that will have to pay for the greed of the banks. This new package does nothing for Greece. The funds will not be invested in Greece. They won't help Greece get out of this crisis. The funds simply go straight to the banks so they can maintain their balance sheets.

What should have happened was that a process for an orderly default should have been agreed. Greece could have then started with a clean balance sheet and a process for rebuilding the economy could have occurred. Instead Greece will have to suffer years of severe austerity measures, negative growth and have the humiliation of having their country's finances controlled by Brussels and the self-interests of the stronger Euro countries.

If Euro ministers and the IMF think that they get away with this they must be either very stupid or mentally ill. This will certainly come home to bite them in the bum. Greece will reach a tipping point where the people simply refuse to take any more and a revolution occurs. It's coming and there is nothing that the Eurozone can do to stop it.

Greece is ill-advised in bending over backwards to secure the funding from abroad