"...those who decided, directly or indirectly, to invest in a bank that made the wrong calls"

It is cynical to call ordinary people "investors", then blame and punish them for making "wrong calls" - ordinary people simply and legitimately want to keep their hard-earned savings for when they need them.

The problem is indeed the government, but it begins much earlier, where the government interferes in the economy to force inflation (of 2-3% a year), so ordinary people are forced to place their savings in a bank (with interest) just to overcome that inflation which government created. They are not speculators and shouldn't be treated as such.

Agree David!
Rhrosty.

I am amazed that a person who thinks that he knows enough to be a member of parliament has such a poor understanding of economics.

Private banks do not create money. When a bank makes a loan it creates an asset which it holds, and a liability that that the borrower has to repay. Each time the borrower repays some of the capital value of the loan the exact same amount of the bank's asset disappears. When the loan is first made available the bank increases the balance in the borrowers account by key stokes and advises the Reserve Bank that the balance in that bank's reserve account has to be reduced by the loan amount.

But the banking system's reserves, in total, are unlikely to change as the borrower will spend the money that the loan represents and the money will appear in another account somewhere within days. Because hundreds or thousands of such transactions take place each day the amount hat the first bank lost from its reserves will be recovered from different loan transaction at other banks. If at the end of a settlement period one bank finds that it reserves are not up to the standard demanded by the Reserve Bank then the Reserve Bank makes some key strokes to boost that deficient bank's reserves and promptly charges that bank 2.25% per annum for the extra amount.

When the Currency Issuing Government (the SG) runs a deficit and the money is spent over and over in a long series of transaction the whole of the deficit ends up either back in the government coffers by way of the tax system or in the financial institutions' reserves by way of savings.
Surely people realise that when they pay with a credit or debit card no actual currency changes hands. Key strokes are made, probably by a code-reading machine rather than by someone sitting at a desk.

Continuing;
The author and the others who made comments have not heard of the American comedians excellent quip, "The most important inventions ever were fire, the wheel, and central banking".

The author and the comment contributors need to read William Black's blogs about fraudsters in the banking industry in the USA or his book, "The Best Way to Rob a Bank is to Own One". The GFC was caused because bank regulation was either inadequate or wasn't diligently enforced in very many sovereign areas particularly the USA, the UK, Iceland, Ireland.

Foreign currency borrowings by either banks or the sovereign government are a different matter entirely.

As a result of an enquirer to my MHR I have been assured that "Bail In"
is not happening. I am not sure that I believe him.
The Governor of the Bank of England seems to believe it.
Certainly the Portuguese and the Cypriots know it is real.

I have become suspicious of the whole banking, industrial, energy
scenario which are capable of interacting in ways that no one has a grip on.
To complicate all the politicians on both sides are determined that
they are going to have very significant growth provided the other
party gets out of their way.
The fact that the energy is not there to generate that growth seems to
be absolutely out of this world to them.

Just to add a factual point I have extracted from State officials
with their reluctance, there is a Federal Government, not a policy,
not a statement, but a "that is a federal area" response that any
consideration of fuel supply difficulties because our refineries
have/are closing, is not to be considered at state or local council emergency management.

Despite that both Federal & State governments would probably cease to
operate after about 3 or 4 weeks of tankers not arriving.
The only likely operational emergency management would be the Local Emergency Management Committees.

Australia a member of OECD is committed to having three months fuel
in stock. We have none ! (NRMA Fuel Reliability Report).

You are right Bazz. Bail in was passed at the last G20 meeting in Brisbane. David knows all about it because the CEC sent letters to every politician about the evidence for bail in. They also put a full page ad in the Australian.

Our banks have derivative exposure 6 times their assets. Derivatives must be honoured first. There will be no more bail outs because the money printing is not working.

Really worth seeing Rob Kirby had 15 yrs experience in these toxic derivatives and know how they are used to manipulate markets.http://usawatchdog.com/world-headed-for-a-meat-grinder-rob-kirby/