39.Tapestry, what I don’t get in your critique that “only a Labour government would have removed all controls on bank lending” is why the Tories at the time were criticising Labour for OVER regulating. It’s all very well looking in hindsight and saying typical labour, but the Tories complained it didn’t go far enough.
The media sang Gordon Brown’s praises for years for taking away from the Bank Of England the power to regulate the financial world. Yet this was a disaster.
The international banking rules from Basel 2 effectively compelled the banks to lend to uncreditworthy borrowers, repackaging and selling on the risks. This was politically motivated so that poorer people could share in the property boom, which was imagined unstoppable and permanent. Hence Brown’s claims that he had abolished busts, lapping up the popularity of the boom caused by excessive and unwise credit.
It’s not a case of over or under -regulating, but of correct or suitable regulation. The Americans stripped away all the laws barring excessive risk-taking which were passed in the 1930s, in the 1990s. The world was rushing headlong into an era of excessive debt, and Brown was at the forefront, being praised every step of the way by a craven and uncritical media. Conservatives expressed their doubts at the time, but were either ignored or more usually, not even reported. Gordon Brown was a financial genius remember. He even read books.
I think we now see that the media blocked any discussion of what he was up to. At least now we have a blogosphere where we can express our views. The MSM can keep skimming over the truth and feeding anti-Tory propaganda, but the situation has passed into a far more serious stage now where the mistakes made by Brown and the regulators have created almost unimaginable mountains of debt, which will take generations to pay off. The situation is bad in tens of countries, but Britain is one of the worst off.
If the media had not got itself lost in creating anti-Tory propaganda but instead had presented Conservative ideas as an alternative to the Labour debt bubble, Blair and Brown would not have been able to make such an appalling mess. That’s why we need a media that is not a propaganda arm of the Marxists. Their actual objective is to destroy the capitalist system so it’s not surprising they have very nearly succeeded.
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