will banking reforms put the economy at risk?

[ecuworrier]

http://www.bbc.co.uk/news/business-14708023

hmm i heard someone say on the radio that reforming the banks could put the eonomy at risk... they seem to be saying that about all sorts of things that seem to be going ahead.... but without reform is not our economy at risk or at least the banking sector or is the gov gonna bale out or what?

GOD BLESS!

Peace and Love,

[AndrewF]

If it was the same broadcast I heard it will not surprise you to hear that it was a banker saying that reforming banks would put the economy at risk...
It NEEDS reforming - actually even the banker seemed to agree with that. We have already bailed them out once at huge cost and should not have to do so again. The question is whether this is the best time, or whether it should be delayed a bit because the reforms would mean a (temporary) reduction in the amount of cash they have available for lending, thus constricting the economy when it is not in a position to cope with this. The trouble is that there is NEVER a good time!

[ecuworrier]

good point...  am sure that there are times where reforms could be carried out without domino effect catastrophe ... but personally not hazarding a guess as to when and how

GOD BLESS!

Peace and Love,