The problem has been gone over umpteen times PolarWind
And yet you still misrepresent it, Maunder
How do I misrepresent it Saint? You yourself have agreed on several occasions that Brown was wrong to run with a large public spending deficit after umpteeen years of growth - I know your solution would have been different from mine ( you would have funded the spend with higher taxes), but at least I thought we agreed on the deficit itself being reckless economics.
And in what way am I wrong about PFI? It was a means of deferring the cost of infrastructure investment.
Yes, we agree that it was wrong for NuLabour to run a budget deficit in a time on sustained growth. But that didn't *cause* the economic meltdown.
You also like to point the finger at Brown for a policy of 'light touch regulation' and for setting up the FSA.
Firstly, Brown continued the 'light touch regulation' which he inherited in 1997. He and others in NL knew full well that, should they try to re-regulate the City, they'd have been castigated by both the City itself and the predominantrly right-wing media for suffocating the City in red tape and bureaucracy - especially at a time when rival financial centres were either de-regulating or running a regulatory policy already much, much lighter than London's (eg, those in the Far East)
Secondly, the FSA was set up to oversee the implementation of and adherence to the existing regulations. Of this, it succeeded. THe problem wasn't the policing of existing regulation, rather the regulation itself.
Saying that, nobody - and I mean nobody - foresaw the exact nature and severity of the banking shitstorm before it was too late. Yes, some predicted doom in certain isolated aspects, and double-yes, it was clear there was a bubble, but nobody had a clear idea of the whole picture and how it would impact. If they had, the hundreds of billions of $'s wouldn't have been lost by the global banking fraternity.
Martin
Home: St Helens (26m asl) Work: Manchester (75m asl)
A TWO addict since 14/12/01
"How can wealth persuade poverty to use its political freedom to keep wealth in power? Here lies the whole art of Conservative politics."
Aneurin Bevan