(Obviously metaphorically because otherwise I'd be inciting you to commit a criminal offence. Which I'm not).
So why does Tory Scum MP (representative for Outer Space) deserve a sound thrashing?
Because he just told Radio 4 that the recession is the fault of 'governments and regulators' for making banks hold higher reserves, thereby preventing them from lending more to get the economy going.
Now let's just review the last twenty years (don't worry, I'll be brief).
1. Tory government - including a Mr John Redwood - and their Labour successors accept financiers' arguments that government regulation is holding them back. They abolish most of the regulations put in place after the crashes of the 1920s-1930s.
2. Banks and finance companies invent a wave of literally incomprehensible financial instruments to fuel uncontrolled speculative greed. Bank speculation dwarfs reserves by massive multiples: the assumption is that nothing bad will happen, so potential losses don't have to be covered.
3. Bad things happen. Banks don't have money to cover their losses. We taxpayers have to spend all our money on saving them. Public services are cut. Job losses are massive. Wages slump. Pensions are cut. Manufacturing nosedives.
4. A tiny bit of regulation is put in place making banks hold a little bit more cash in case of deals going wrong, amidst much whinging from business. Tory government cuts taxes on corporations and cancels new school buildings.
5. John Redwood blames us for the recession.
Now doesn't that demand a sound horsewhipping?
1 comment:
I am one of those who agrees that the money held in savings by the failed banks should have been guaranteed by the government, but the banks should have been put into receivership.
a) Then they would not be a burden on the taxpayer now.
b) We wouldn't be financing the bonuses of their top executives, while the banks are still losing money.
c) There wouldn't be any money to pay the pensions of failed ex-employees like Fred Goodwin, who should still be hounded by our free press, and his whereabouts published so that the victims of the recession he caused can remonstrate harshly with him
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