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The financial crisis and our politicians

#1
Here is one view:

http://www.economist.com/world/britain/displaystory.cfm?story_id=13144829

My solution to the problem would include:

Splitting banks and building societies away from any investment banking operation,and enshrining this move in law.

Forbid normal banks and building societies from borrowing money on wholesale markets,to bolster their own lending operations.In tandem allow banks only to lend at an agreed multiple of their balance sheets,including deposits.Inspections of these limits would be regular,and infractions immediately punished.

Ensure that any investment banks were told that,if they got themselves into trouble,speculating,lending to large corporates,using their own capital etc,then they would not be bailed out,with public money.

Any bank wishing to indulge in off balance sheet lending,would be banned by the FSA.

That's just for starters....
 
#2
Interesting find Muhandis89. That the government seem unable to understand what has happened is very obvious when you listen to them. Sitting in a small business in the South East of England both I and many friends saw this crisis looming and the signs were spelt out in the media over the previous four or five years. The Government rode the wave of income from the ebb and flow of monies and took credit for it. It seems incredible now that they chose short term benefit against long term stability and we are paying for that selfish lack of vision.

Unfortunately, as they quite rightly point out in the article, the opposition parties are no better off in understanding the nature of the crisis. The Conservatives wrote themselves off immediately after Labour came to power and have shown no sign of life since then. With both the European elections coming up and a general election within sight, the government must be pretty scared about which way the nations protest vote will go. If I thought for a minute that there was a party with the vision and talent to take the nation forward out of this situation I would point a finger at them but frankly there's nobody out there with the skills yet.
 

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