The "worst may still be ahead" for the banking system, the
Bank of England's deputy governor has told a gathering of leading bankers.
Paul Tucker said reserves held by banks were still not calibrated for
the "end-of-the-world risks" that remained a possibility
It is a
well known fact that history is written by the victors, one of the spoils of
war.
I’m not
sure however how the current Doomsayers be they high profile members of the
international Banking world or senior politicians can justify their
pronouncements when the problems we now face were created on “their watch”.
It is the
ultimate irony that politicians with the so called “light touch” and
institutions such as the Bank of England/ US Fed were all too willing not to
look too closely into the ways that the markets and sovereign economies were
being structured for fear of rocking the boat.
There is a
certain black humour that these very architects of disaster now turn round and
pontificate about the dangers that the world faces. These were the same people
who were lauding and applauding the likes of Sir Fred Goodwin, (shortly to be
sued by former shareholders of RBS). There also were a number of high profile
cheer leaders for the Euro who are now conspicuous by their silence on the
matter
Now the man
in the street is told to prepare for more belt tightening whilst businesses
find themselves desperate for funding as Banks are reluctant lenders as they
look to repair their damaged balance sheets.
Plus ça change
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