[email protected]: Vince Cable – A desperate attempt to revive a corpse

Over at The Times, Lib Dem deputy leader Vince Cable explains that the second bailout shows that the Labour Government has acted as imprudently as the banks themselves. You can read it in full here – and I recommend that you do – but here’s an excerpt in case you need any further tantalising:

It is clear that the conditions set by the Government over the original capitalisation was a sham. No effective monitoring and controls were put in place to ensure that the money went where it was intended. The banks do not even seem to have been required to give a full, transparent declaration of their bad loans. …

The big question now to be faced is whether the Government remains a passive investor, putting in taxpayers’ money and hoping that normality returns soon, or restructures the bank to meet the needs of sound UK borrowers. The latter is becoming increasingly preferable, perhaps inevitable, if new lending is to be maintained. A similar set of questions may soon face the Government in relation to Barclays if the markets’ negative verdict on its underlying health is borne out.

As an economic liberal I am instinctively suspicious of dirigiste solutions. But there are times when collective panic – with the markets not trusting the banks; the banks not trusting each other; and the banks unwilling to lend – when the State has to take over responsibility for as long as is necessary (but not longer).

Read more by or more about , , or .
This entry was posted in LibLink.
Advert

2 Comments

  • Andrew Duffield 20th Jan '09 - 8:10pm

    “Iceland-on-Thames”! Marvellous stuff!

    Vince is right (as ever) of course, those Russian oligarchs will be laughing all the way to the.. er, bank. At UK taxpayers’ expense unfortunately.

    The one sure thing the State HAS to take over responsibility for – and keep – is the issue of new money into the economy. As long as the banks retain the power to create credit as debt, we will always be their slaves.

    The opportunity to re-cast the rotten financial system to work for the public good instead of private gain has never been greater.

  • “Iceland-on-Thames”! Good phrasemaking by Vince, but, terrible stuff.

    Iceland is hurting, badly. So shall we, if our banks collapse into the arms of the state, only to drag down our currency and bankrupt the nation. Not exactly fun for anyone. More likely mass unemployment, real suffering, a massive fall in support for Labour and ourselves, perfect conditions for the BNP.

Post a Comment

Lib Dem Voice welcomes comments from everyone but we ask you to be polite, to be on topic and to be who you say you are. You can read our comments policy in full here. Please respect it and all readers of the site.

If you are a member of the party, you can have the Lib Dem Logo appear next to your comments to show this. You must be registered for our forum and can then login on this public site with the same username and password.

To have your photo next to your comment please signup your email address with Gravatar.

Your email is never published. Required fields are marked *

*
*
Please complete the name of this site, Liberal Democrat ...?

Advert



Recent Comments

  • User AvatarDavid Raw 18th Aug - 3:27pm
    @ Richard Underhill "Vince Cable used to teach about Keynes while he was a Labour councillor, despite the contradictions of the two roles." And what...
  • User AvatarMichael BG 18th Aug - 3:17pm
    @ David Evans The Labour costing document states that abolishing university tuition fees and restoring maintenance grants will cost £11.2bn a year. They suggested that...
  • User AvatarDavid Evans 18th Aug - 3:13pm
    Joe, As I said I agree with a lot of what you say, but as you, yourself have demonstrated by your post, the explanations for...
  • User AvatarJoe Bourke 18th Aug - 2:48pm
    Thomas, the prefabrication technology you mention could be a good improvement for the UK and I believe a Chinese firm has recently set-up in the...
  • User AvatarPeter Kemp 18th Aug - 2:35pm
    ANY logic says that if you are of an open mind, tolerant and anti brexit ..... you would already be a Lib Dem member or...
  • User AvatarRichard Underhill 18th Aug - 2:23pm
    There is more of Scotland north of Caithness, where Jo Grimond was an MP.