Modern global capitalism, where companies become too big to be controled by their governments has spectacularly failed humanity and we need an urgent rethink if a financial catastrophe is not to turn into a global financial disaster!
Banks sold mortgages to millions who had no chance of servicing them and then they re-sold these mortgages as unaccountable derivative products to mask the inherent credit risk. Known as sub prime paper in the USA, it quickly became a financial game of musical chairs with no one knowing who was holding the dodgy debt until the mood music stopped in 2007. Billions of taxpayer £££s later, confidence in global capitalism is rightly be questioned.
Although our UK base rate is at an all-time low of 0.5 per cent, banks are charging “Dick Turpin” rates of up to, and over 20 per cent and often failing to lend to good businesses to protect their balance sheets.
UK Tax payer funded banks; Nat West, Lloyds and RBS and their subsidiary credit card companies are engaged in legalized theft while our government stands by, impotent of ideas and solutions.
Thank God for Vince Cable our Business Secretary; a man of principle and vision. We do indeed need a rethink of our mixed market model; smaller government and Town Hall burocracy with increased personal responsibility and a new ethos of accountability!