Thursday, 28 June 2012
Pressure mounts on Barclays chief
Just appalling! How can anyone so shamelessly say they didn't know, or it was the previous government fault?
This was a tacit nod from all politicians in a laissez-faire, "market forces", debt fuelled growth model. It all started with the 80's deregulation of a financial sector which went way beyond its basic function of providing the businesses and consumers with money in a risk-calculated manner.
"Financial innovation" led to the most unnecessary, across the political spectrum-induced crisis, and self-regulating is a laughable argument. Hungry, ill mannered and unsupervised kids in a candy shop. You expect them to have a cake each and then brush their teeth?
This is organized crime, this should end up with much more than fines or resignations.
Small interest rates = high asset prices (and higher capital gains for landowners). Low borrowing costs = bigger profits. Bigger profits = bigger bonuses. Let's rock'n'roll boys! Now that we have our accounts bursting with cash, let the bubble burst with a bang. We may even forgo our occasional bonus. The taxpayer will clean up the mess. And it's ugly.