Magna Carta links

Magna Carta links
At the Library of Congress in Washington

Sunday, 26 April 2009

Budget Deficit

The budget speech and articles in the Guardian which followed spoke of a mammoth deficit. This is not small beer by any stretch of the imagination.

If it came about because banks lent at high interest rates to people with no realistic means of repaying, we stand back and wonder. If these mortgages, sub-prime mortgages, were cleverly packaged with better fare and traded on, we sit back and wonder. If banks around the world invested in these bonds because they believed what it said on the tin, we sit back and wonder. If politicians now come along and blame the bankers, we should not sit back but ask how come the banks could lend as they did, sell the bonds they did and invest in the junk they did. Sure, they could have said no. But when everyone else was on the bank(d)wagon, it is brave man who stands on the side.

Surely the fault lies with those who allowed the creation of a banking world where all this could happen. Who deregulated? Brown was not alone.

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