quote:
Originally posted by Stan
How does this work? If any of us normal people get into difficulty through no fault of their own, its threats ,bailiffs ,fines etc,but borrow billions,don't repay it,then other people write your debt off,then increase the amount you can keep on borrowing from them. Don't understand that.
Your not wrong, it works on the basis of firstly it is 'too big to fail', and when it does fail then everyone starts saying that it is too late, too big and too difficult to do anything about it - so no need to send in the attack dogs to recover other's losses - and then invariably it is the small guy down the line such as a small supplier or an employee or pensioner, who has to take the real pain of a company collapse.
One of the worst example in my experience is the collapse of the Maxwell empire, although dead Maxwell's family who were all tied in with their father/husband got away with it all scott free, and continued to enjoy an expensive lifestyle.[
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Like Scunner's recollection in another thread where companies go bust, and days if not hours later the directors reform and continue to trade in a new company, with the debts in the old company being absorbed as losses by their suppliers and HMRC.
You don't mind people trying and failing, but when failure's route is everyone else taking the pain, and the directors taking little or no responsibility for their actions in the failed company, you begin to wonder if our administration and bankruptcy rules and procedures are tough enough:-\
