Blame Brown and Greenspan says Paul Tustain (interesting article).

A._Badger

That's a pretty revealing mischaracterisation of the Bush government - completely unrecognisable to many Republicans in the US - and what validity it has relates to Bush's social policies, not his continuation (give or take) of the previous administration's 'let her rip' economics.

This isn't, essentially, a 'socialist' vs 'capitalist' issue. It's more about the willingness of any ruling elite to perpetuate itself at any cost.

Rochdale_Pioneers

A._Badger wrote: »

That's a pretty revealing mischaracterisation of the Bush government - completely unrecognisable to many Republicans in the US - and what validity it has relates to Bush's social policies, not his continuation (give or take) of the previous administration's 'let her rip' economics.

This isn't, essentially, a 'socialist' vs 'capitalist' issue. It's more about the willingness of any ruling elite to perpetuate itself at any cost.

Thats exactly the point I am making. Here Tories are portraying the bank bailouts et as typically socialist. As Bush was doing exactly the same thing and is about the furthest you could get from socialism, it makes people saying this look ridiculous. Whats going on now is not ideological at all.

harryhound

Rochdale_Pioneers wrote: »

And thats where the lack of a regulatory framework - here and globally - has screwed us. ...

I largely agree BUT our banks were "regulated" by the tripart agreement.
(What does the little green man say as he walks up to a petrol pump? "Take me to your leader")

Lending hit the wall back in Summer 2007, it has taken till now for the real results to surface. Back in 2007 it was chronically obvious that the Government had gone on holiday and the FSA was busy with process rather than outcomes. That is how pensioned civil servants tend to work. Head down, busy ticking the boxes, while there is a blazing fire outside the windows, looking up and saying "has anyone heard the fire alarm yet" ?

If you call for "regulation" you need to explain how you intend to implement sauccessfully in a "free" society.

Harry.

I would make a start by making the sort of "Economics" discussed on this forum part of the educational "national curriculum".
Just like cigarettes, loans do come with a (pathetically small) health warning and even here we daily see people who think that a 100% increase can be put right by a 100% reduction.
A class action system might put the fear of God into some of the arrogant people who screwed up our banks.

baileysbattlebus

I think someone has already posted this - it's not the govt that caused this mess - it's lack of govt.

Do you think getting rid of the Glass Steagall act in the US in 1999 had much to do with this?

When the US allowed commercial and investment banks to merge, instead of being kept separate

harryhound

Glass Steagall act.

But do we want the City of London complete with 8 - 10% of our GDP to migrate to (say) Dubai?

Glaobqalisation caused the repeal of Glass Steagall, not vice versa. The genie is out of the lamp; I honestly don't think any Government will be able to put it back in again, let alone one of the bankrupt Western ones. This is not the 1930's, technology has moved on since then.