Re: Disgusting.....
Originally Posted by
Donkeyman
->
I take it you refer to the last financial crash when you talk
about operating on a sick body, causing short term pain to
achieve long term well being!
Well, that crash was caused by a particular sector of the uk
economy, which in its efforts to push profits to unattainable
levels took unacceptable risks with other peoples money, and
thus, bankrupted themselves and us in the process!
So l would like to know how can you cure a malignant
desease in the torso by amputating a toe from the foot?
I hope you recognise the anology?
Regards Donkeyman!
A very good point and I'm pleased it has been raised.
Let's just examine what took place before the UK banking system went "open loop" - in other words took off like crazy.
For many many years the UK banking system had been subject to the controls set out and audited by the Bank of England. The BoE was in effect managed by the Government which gave responsibility for the economy to the Chancellor of the Exchequer.
If Stirling fell the CoE was responsible for putting in place measures to manage the situation by dictating interest rates, similarly if Stirling rose the CoE could control that in effect controling our import/export ballance to our advantage. But the buck stopped with the CoE.
And then along came Brown.
Rather than carry the can that tw@ broke what had served us fine we'll for many many years.
By his actions in breaking the link between the treasury and the BoE he decoupled ministerial and so political responsibility for the economy. Instead of carrying the can and managing the economy he simply gave the now independent BoE a target for inflation but even worse he removed surveyance and management of banks by the BoE and didn't replace it with anything.
The results?
Bankers engaged in their prime responsibility, delivering shareholder value.
Changes in the finance and banking sector in America as a result of Clinton having pushed through the repeal of the Glass-Steagall act which, in the absence of any control to limit what the UK finance houses and banks were whole to do left little option but exploit the opportunities that became open.
Had Brown NOT screwed up the management and control that the BoE had been providing the huge losses resulting from toxic stock from the USA the impact on our hole banking system would have been massively reduced.
Don't blame the Bankers, they were just tell scorpion out of Aesop's fables of the Fox and the Scorpion table.
Blame Brown.