The news that the Lloyds Group has returned a substantial profit in the first quarter of the year reinforces my belief that the banks and their allies greatly exaggerated the size of their problems and succeeded in steamrolling governments into bailing them out. If politicians had been courageous enough to withstand that pressure and let capitalism takes it course; letting a few banks go bankrupt we would not have got into the present crisis. For example, Barclays refused to be railroaded into rescuing Lehman Bros preferring to buy the good bits of that company at bargain prices after it was liquidated. Lloyds could have bought HBOS in similar fashion if our government had not interfered.
Having caved into the banks our politicians created a situation of panic and total lack of confidence which has pushed what would have been a crisis in the financial sector into a full blown recession.
Only today it has become clear that the margin between what banks offer savers and what they charge for loans has widened. This in itself suggests there is a great lack of competition in the global banking system. Bear in mind that in the real economy many people and businesses are still suffering while even the state-owned banks have paid out several billions in bonuses.