Mathew Lynn writing in November 13th edition of the Spectator is admiring of the way Iceland has managed to handle the banking crisis by protecting the home investors and letting the banks go under and default on the rest of the debt. To quote him
In truth the Icelandic experience raises an alarming possibility for the rest of the developed world. Maybe we didn't need to bail out our banks quite so expensively. Maybe we should have let them go bust?
Interesting that I was saying that we should have let banks fail in my post of April 27th this year. Elsewhere in the same Spectator Fraser Nelson is suggesting that the 50 percent rate of tax will drive top earners away. Letting the banks go bust would have solved that problem as well; by now there would not be that many jobs let alone big bonuses in the financial world. We might even have got some real competition instead of the return to the cosy cartel which is British banking today.