angry penguin

globalsociety


Scritturare (engage)

Brian Alleyne's weblog on culture, politics, and technology


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The Financial Sector has not failed. And here is why …
angry penguin
globalsociety

The recent Merlin Deal here the  UK saw the banks agree to lend large sums of money to businesses. They made some concessions on high-level executive pay. And they will pay a bit more taxes. George Osborne called for an ‘end to retribution’ and for a move to ‘recovery’. But there was no retribution. Public anger yes, but no retribution. You see, the banks did not fail. They played the major role in exacerbating the financial crisis. They certainly dodged a bullet. But fail they did not.

Name any other sector of a modern economy in which wealth destruction on the scale of the financial crisis (over USD $11000 billion) could have happened, and which would be met by a socialisation of the costs, and ritualistic pruning of a few top figures. Difficult, eh?  So the banks have succeeded in the sense of making massive errors with titanic consequences, and having to pay no price for their mistakes. If that is not success, then I do not know what is.


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