footieman Posted May 27, 2011 Share Posted May 27, 2011 I've not seen much of this being mentioned in the British media, but maybe i've just missed it. Business Secretary Vince Cable is warning another financial crash could be on the horizon because Governments have collectively failed to grasp the seriousness of the last one. In an interview with the New Statesman, Cable says not enough is being done internationally in terms of financial regulation and the structure of the banks. He says whether or not another crash can be avoided is what concerns him most. He says: ?I was very impressed with that Warren Buffett metaphor that asset-backed mortgage lending was the atomic bomb, and that there are hydrogen bombs out there. I just don?t think that collectively governments have got to grips with this at all. ?It is not imminent but you can see another bomb going off. ?You have got bits and pieces of regulation being put in place but it is very piecemeal. The structure of banks is being addressed in the UK but nowhere else. There is a bit happening in terms of complex derivatives, in terms of clearing house arrangements, though it is a bit limited.? Reiterating comments he made in the Guardian on Saturday, Cable says there is a lack of popular understanding about how serious the repercussions of the recession and the banking collapse are, citing Indian billionaire Ratan Tata?s description of a wartime feel in Indian Industry. He says: ?We do not have that. There is not the recognition, to my mind, of the seriousness of the problem.? Since coming to power in May last year, the Government has repeatedly blamed the deficit on Labour profligacy, but Cable says it is a ?consequence of the banking collapse?. Link to comment Share on other sites More sharing options...
Boris Posted May 27, 2011 Share Posted May 27, 2011 Since coming to power in May last year, the Government has repeatedly blamed the deficit on Labour profligacy, but Cable says it is a ?consequence of the banking collapse?. A government that Mr Cable is happy to be part of and take a ministerial salary from. He should adhere to collective responsibility or he should resign and challenge the Govt from the back benches. Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted May 27, 2011 Share Posted May 27, 2011 Some of us have been saying this for ages. BTW, diverting the banking collapse from public spending profligacy is stupid in the UK context because the UK was enjoying a boom in financial services and construction in the middle of the decade. Rather than save for a rainy day, public spending rose even faster! Thus when tax revenues collapsed as a result of the banks being caught selling dodgy paper to each other, the deficit ballooned. Link to comment Share on other sites More sharing options...
Boris Posted May 27, 2011 Share Posted May 27, 2011 Geoff, don't know if you can get iPlayer stuff where you are, but if you can please watch this and let me know what you think. http://www.hmfckickback.co.uk/index.php?/topic/93534-all-watched-over-by-machines-of-loving-grace/ Seems to me, from watching this anyway, that essentially the whole world has been stitched up by a financial elite, regardless of Govt spending policies etc. Link to comment Share on other sites More sharing options...
portobellojambo1 Posted May 27, 2011 Share Posted May 27, 2011 Some of us have been saying this for ages. BTW, diverting the banking collapse from public spending profligacy is stupid in the UK context because the UK was enjoying a boom in financial services and construction in the middle of the decade. Rather than save for a rainy day, public spending rose even faster! Thus when tax revenues collapsed as a result of the banks being caught selling dodgy paper to each other, the deficit ballooned. I would probably go further than that and say it applies to individuals as well Geoff, who are now blaming everything on the banking collapse. Because both government and individuals were happy to go along for the ride while things were booming, but failed to divert the huge gains being made into safer, lower risk investments in preparation for any potential bang. In terms of blaming Labour for that in relation to public spending it seems a fair statement to make. i cannot imagine if the situation had been reversed and it had been a Conservative government in power at the time of the collapse that Labour would have directed all the flak at the banking sector. The blame game is all part of politics is it not. I think part of the problem now is that what was happening back then involved nothing more than non existent money, being moved about electronically. Now when it is in general terms back to dealing with real money the realisation is there isn't enough to actually do everything, and the present situation could drag on for many, many years, and in some cases bottom out again. Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted May 27, 2011 Share Posted May 27, 2011 Geoff, don't know if you can get iPlayer stuff where you are, but if you can please watch this and let me know what you think. http://www.hmfckickback.co.uk/index.php?/topic/93534-all-watched-over-by-machines-of-loving-grace/ Seems to me, from watching this anyway, that essentially the whole world has been stitched up by a financial elite, regardless of Govt spending policies etc. I can watch iPlayer via Expat Shield but if that is the gist of the programme, then I would give a qualified agreement to that statement. I'll make an effort to watch it over the weekend. Link to comment Share on other sites More sharing options...
jim747 Posted May 27, 2011 Share Posted May 27, 2011 Was always the case, a W crash. Does not help throwing a billion into Libya recently, a fe hundred million to Packistan to hide bin liner, and today another 110 million to Egypt and Tunisia. Link to comment Share on other sites More sharing options...
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