Guest 698- Registered: 28 May 2010
- Posts: 8,664
31 January 2011
20:0590888The banks got into trouble because they made dodgy lending and investment decisions. As a result they now have to keep more capital than before to back their assets. But now the government wants them to start lending willy-nilly again, this will just lead us to the same place when the borrowers start getting shaky again.
The government is in trouble because Labour spent too much and borrowed too much to fund it.
The two factors are unrelated except that they both contributed to the overheating of the economy- the bubble had to burst sometime.
I'm an optimist. But I'm an optimist who takes my raincoat - Harold Wilson