Bank idiots blame government idiots…

[ratewhore]

To different degrees lenders are facing conflicting pressures to recapitalise against possible future losses, service government’s preference shareholdings at 12 per cent, pay a premium to access the Bank of England Special Liquidity Scheme, show forbearance to borrowers in arrears, follow base rate moves down to help their existing borrowers, keep savings rates high to support existing savers, and provide competitive rates to new borrowers and savers to maintain economic activity in a recession.

Fair point - well made...

[PM-Junkie]

It's a generational thing. Labour haven't been in power for a generation so enough people didn't know that every labour government eventually runs out of moneyand doesn't even have a basic understanding of economics. This generation have learnt the hard way just as the previous one did....

[Doggy Styles]

That is perfectly correct PM-Junkie.

Next time someone says the tories are only supported by the blue rinse brigade, I'll say yeah, because they're the only ones who remember these c***s from last time.

[expat]

It's a generational thing. Labour haven't been in power for a generation so enough people didn't know that every labour government eventually runs out of moneyand doesn't even have a basic understanding of economics. This generation have learnt the hard way just as the previous one did....

The next thing they are about to learn the hard way is what happens next....

[TimberWolf]

The next thing they are about to learn the hard way is what happens next....

Ah yes, the final chapter. Can't wait.

[Mich the Tester]

Ah yes, the final chapter. Can't wait.

Bucks Fizz at number one.

[Bagpuss]

It's a generational thing. Labour haven't been in power for a generation so enough people didn't know that every labour government eventually runs out of moneyand doesn't even have a basic understanding of economics. This generation have learnt the hard way just as the previous one did....

The difference being this is a monetarist Labour Government. One so similar to the Conservatives on economic policy, almost certainly the same mistakes would have been made. Maybe interest rates would have been raised sooner to dampen the boom. But make no mistake we would still be in a banking crisis and heading toward recession.

[Doggy Styles]

The difference being this is a monetarist Labour Government. One so similar to the Conservatives on economic policy, almost certainly the same mistakes would have been made. Maybe interest rates would have been raised sooner to dampen the boom. But make no mistake we would still be in a banking crisis and heading toward recession.

Monetarist? That was all about balancing the books. This government has paid no heed to balancing the books.

[Mich the Tester]

Monetarist? That was all about balancing the books. This government has paid no heed to balancing the books.

Yes, but that’s not what your average run of the mill dimwit voter wanted, is it? Your average numpty wanted a SUV, a burberry hat, a big mock tudor detached house and a collection of Gucci handbags for the missus. As long as Gordon’s miraculous money tree kept on providing, they kept on voting for him. Now, just as it looks like they might have to save up for a Micra instead of borrowing for a BMW, they look to the great Gordon to rescue their unsustainable lifestyle.

All the while, there were those nasty opposition MPs saying nasty spoilsport stuff like 'Mr Brown's turning Britain into a credit card economy', and 'someday all these debts will have to be repaid'. Nasty scrooges.

[OwlHoot]

Erm, don't go thinking I'm a fan of Mr Brown. It seems to me that the banks are the original idiots for lending stupid amounts to people. ...

But the UK & US Governments applied a lot of pressure on the banks to lend the stupid amounts, and enabled it to happen.

As far as I can see the full cause and effect chain of the current crisis has been:

* 12 million immigrants pour into US
* Ronald Reagan gives them an amnesty
* They keep pouring in, and need housing
* States and Clinton Government baulks at paying, and pressures banks to offer cheap loans, and in 1999 some Federal law which would have hampered this is repealed (not sure of the details, but that did happen).
* Bankers' natural greed and opportunities for making quick bucks is now unchecked

and much the same happened in the UK and other countries.

Please note, I'm not blaming the immigrants in any "moral" sense. Anyone would have done the same in their place. But I still reckon mass immigration was somehow the original cause of this.