Comments on: Social Ecology in the UK http://socialecologylondon.wordpress.com/2007/03/11/social-ecology-in-the-uk/ Study/Action Group meeting ervy other week in Whitechapel. Mon, 26 Oct 2009 16:11:40 +0000 http://wordpress.com/ hourly 1 By: J.Kelvyn Richards http://socialecologylondon.wordpress.com/2007/03/11/social-ecology-in-the-uk/#comment-2942 J.Kelvyn Richards Thu, 29 Jan 2009 21:40:12 +0000 http://socialecologylondon.wordpress.com/2007/03/11/social-ecology-in-the-uk/#comment-2942 Credit is at the root of many things: it is money. If you have an idea for a project...say providing books for children to read and borrow. You will need money to buy the books, and to provide a base to which the children will come to read and borrow. This money can come from your own pocket; or be given by a sponsor; or as credit from your local bank, or credit union. If your local community needs the service, and you are willing to organise it, and someone is willing to provide the money, then I do not see this as enslavement! Credit is at the root of many things: it is money.
If you have an idea for a project…say providing books for children to read and borrow. You will need money to buy the books, and to provide a base to which the children will come to read and borrow. This money can come from your own pocket; or be given by a sponsor; or as credit from your local bank, or credit union. If your local community needs the service, and you are willing to organise it, and someone is willing to provide the money, then I do not see this as enslavement!

]]> By: Munki Lodjik http://socialecologylondon.wordpress.com/2007/03/11/social-ecology-in-the-uk/#comment-2895 Munki Lodjik Sun, 04 Jan 2009 03:22:55 +0000 http://socialecologylondon.wordpress.com/2007/03/11/social-ecology-in-the-uk/#comment-2895 hi, i'm new to this but i can truly say that i've been thinking along these lines for a while now. More recently i've been looking for a platform to express as such and will be looking to in the near future. I tend to agree with around 99% of what is said but have major reservations with the idea of being able to supply community based credit or any credit whatsoever. Credit is clearly at the root of capatilism and is certainly not the answer as it enslaves. hi, i’m new to this but i can truly say that i’ve been thinking along these lines for a while now. More recently i’ve been looking for a platform to express as such and will be looking to in the near future.
I tend to agree with around 99% of what is said but have major reservations with the idea of being able to supply community based credit or any credit whatsoever. Credit is clearly at the root of capatilism and is certainly not the answer as it enslaves.

]]> By: J.Kelvyn Richards http://socialecologylondon.wordpress.com/2007/03/11/social-ecology-in-the-uk/#comment-2821 J.Kelvyn Richards Wed, 03 Dec 2008 08:53:32 +0000 http://socialecologylondon.wordpress.com/2007/03/11/social-ecology-in-the-uk/#comment-2821 Matt Little, how about rewriting your piece in the light of the facts that in 2007-2008, the capitalist system has shown all the signs of destroying itself. The search for more and more profits led hedge funds and mutual funds and banks and insurance groups to devise more and more exotic packages to offer to their clients for greater fees and profits. For example, some clever fund managers spotted that there was an untapped demand across the world for home ownership amongst those on low to medium incomes. So they devised packages of mortgage/house insurance/loan debt cover which they sold to the mortgage banks who would use them as collateral obligations and tempt house buyers. In this way millions of families were enticed into buying their own homes with minimum deposit and low repayments. The fund managers sold these ‘sub-prime mortgages’, and took their fees up front. It was anticipated that these sub-prime mortgages promised income to the funds and banks for 30 years ahead. So these ‘debts’ were bought and sold by finance houses in anticipation of billions of dollars of profit. In addition, the funds could simply increase their profits by raising the interest rates on each mortgage. But the scheme collapsed when more and more of the clients defaulted on their mortgage payments. As their interest rates went up, the clients could not afford the repayments. It started in Ohio, USA and spread across the world. The whole financial system of the West, by this time, was based on credit and debt. So once the prospect of massive profits disappeared, debtors started claiming their money back. First, the defaulters were bankrupted and made homeless. But then it was revealed that many banks and funds had only debts, and no cash. They collapsed. Once the banks started to collapse, the other solvent banks stopped lending as they did not have enough cash or they did not want to risk their cash balances. Industrial and commercial enterprises, which expand on the basis of credit worthiness, and available debt, found that it was impossible to gain loans to fund their projects, and so they either went bankrupt or contracted, laying off many workers. If this process had been allowed to unwind there would now be many companies bankrupt and many unemployed. But this did not happen. The governments of the ‘developed’ world intervened. The politicians could not conceive of a world in which some of the biggest companies of the world would disappear. In particular, the very banks and insurance companies that had been gambling on sub-prime mortgages were rescued with bailout payments of trillions of dollars. The Central Banks and the governments of the ‘developed’ world have taken on the debts of the financial system: or to put it another way, the debts will be paid by the tax payers: the people who were ‘tricked’ in the first place will bear the burden of the debt for the foreseeable future. It is still possible that governments and the financial system will become bankrupt, and many companies will collapse. There are ‘crises’, and recession, and depression. But most people seem content to do nothing. The exception has been in Switzerland. Here thousands of shareholders have been gathering to take direct action and call to account the directors and managers of investment banks and funds, and demanding their resignations, and that they return their bonuses to the companies. Matt Little, how about rewriting your piece in the light of the facts that in 2007-2008, the capitalist system has shown all the signs of destroying itself.
The search for more and more profits led hedge funds and mutual funds and banks and insurance groups to devise more and more exotic packages to offer to their clients for greater fees and profits.
For example, some clever fund managers spotted that there was an untapped demand across the world for home ownership amongst those on low to medium incomes. So they devised packages of mortgage/house insurance/loan debt cover which they sold to the mortgage banks who would use them as collateral obligations and tempt house buyers. In this way millions of families were enticed into buying their own homes with minimum deposit and low repayments. The fund managers sold these ‘sub-prime mortgages’, and took their fees up front. It was anticipated that these sub-prime mortgages promised income to the funds and banks for 30 years ahead. So these ‘debts’ were bought and sold by finance houses in anticipation of billions of dollars of profit. In addition, the funds could simply increase their profits by raising the interest rates on each mortgage.
But the scheme collapsed when more and more of the clients defaulted on their mortgage payments. As their interest rates went up, the clients could not afford the repayments. It started in Ohio, USA and spread across the world. The whole financial system of the West, by this time, was based on credit and debt. So once the prospect of massive profits disappeared, debtors started claiming their money back. First, the defaulters were bankrupted and made homeless. But then it was revealed that many banks and funds had only debts, and no cash. They collapsed. Once the banks started to collapse, the other solvent banks stopped lending as they did not have enough cash or they did not want to risk their cash balances. Industrial and commercial enterprises, which expand on the basis of credit worthiness, and available debt, found that it was impossible to gain loans to fund their projects, and so they either went bankrupt or contracted, laying off many workers. If this process had been allowed to unwind there would now be many companies bankrupt and many unemployed.
But this did not happen. The governments of the ‘developed’ world intervened. The politicians could not conceive of a world in which some of the biggest companies of the world would disappear. In particular, the very banks and insurance companies that had been gambling on sub-prime mortgages were rescued with bailout payments of trillions of dollars. The Central Banks and the governments of the ‘developed’ world have taken on the debts of the financial system: or to put it another way, the debts will be paid by the tax payers: the people who were ‘tricked’ in the first place will bear the burden of the debt for the foreseeable future.
It is still possible that governments and the financial system will become bankrupt, and many companies will collapse. There are ‘crises’, and recession, and depression. But most people seem content to do nothing. The exception has been in Switzerland. Here thousands of shareholders have been gathering to take direct action and call to account the directors and managers of investment banks and funds, and demanding their resignations, and that they return their bonuses to the companies.

]]> By: socialecologylondon http://socialecologylondon.wordpress.com/2007/03/11/social-ecology-in-the-uk/#comment-169 socialecologylondon Wed, 28 Mar 2007 11:24:57 +0000 http://socialecologylondon.wordpress.com/2007/03/11/social-ecology-in-the-uk/#comment-169 Wow! This is some stirring stuff! A great critique of the UK at the moment and how to move forward. See you on Thursday Mat. Jon Wow! This is some stirring stuff! A great critique of the UK at the moment and how to move forward. See you on Thursday Mat.

Jon

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