A picture is emerging that is not quitethe same as we have been given over the last few months. There aresome straws which point towards an alternative landscape. Considerthe statement from a Commons committee querying why some banks havesurvived and others have not and the complaint from the secretary ofthe British Bankers Association that it is not right to tar allbankers with the same brush. In other words, was it really the casebefore the rush to rescue the banks that the world financial systemwas in meltdown.
Is it possible perhaps that thedirectors of the banks in real trouble hyped up the seriousness ofthe situation? Some British politicians with Scottish interests anda realisation after the floods of the previous summer that the PrimeMinister appears at his best in a crisis were only too willing to goalong with the exaggeration. After all it was the only two majorScottish banks which were in trouble. It is then quite natural torush to the banks aid pouring in billions of pounds that the countrycould really not afford.
The said bankers have not changed theirspots and are busy mending their capital and improving their shareprices but without the shame of causing their companies to go bust.In some senses for the individuals involved it has been a win winscenario, a rescue of much of their asssets and pension arrangementsand a chance for the Prime Minister to strut his stuff on the worldstage. And so far the bluff has worked. People are bitter about thebanks and about the money hurled at them but very few are suggestingthat the rescue by governments was unnecessary.
But what about the USA? Bush was inthe dying days of his term of office and saw a last chance to do hisbig business pals a favour. Obama has had to go along with itbecause calling the banks bluff at this stage would really be far toorisky.
In both America and the UK the reallybig money has gone to the financial sector and very littlecomparatively has been spent on attempting to reduce the job lossesamongst ordinary men and women. In fact the UK government hasreduced its capital spending whereas an increase in social housebuilding and other quickly realised schemes could have made adifference.website https://robthill.wordpress.com