Osborne genuflects to banks, but still can’t turn up economy
June 16th, 2012It is astounding that some political leaders can be so wilfully blind. Osborne, faced with a collapsing economy and banks that are unwilling to lend because they have such lack of confidence in the economy that they don’t believe they’ll get their money back, has now in utter desperation bowed to banks’ demands to water down financial regulation even further in exchange for – what? The Treasury is opening up a new credit facility called (hopefully) ‘funding for lending’, allegedly around £80bn, which is designed to get money flowing to industry and getting the economy to turnaround from its vicious spiral downwards. But will this work? There are two fundamental flaws in this latest idea. (more…)
