Friday, 4 December 2009

If It Ain't Broke Fix It Anyway

It's true. Gordon Brown really has been leading the world all along - in how not to regulate banks. His famous and now infamous tripartite system of regulation - a classic example of if it ain't broke fix it anyway because you think you know better than everyone else - was held up as a system for America not to follow by Fed Chairman Ben Bernanke yesterday.

Bernanke's argument is slightly simplistic and of course slightly self serving since he doesn't want any powers taken away from him as they were the Bank of England. But he is essentially right. When Brown claimed that the recession we are still in unlike the rest of the major economies came from America he tended to conveniently forget his role in undermining our regulatory system and allowing the banks to run amok. Now, as the latest terrifying figures this week revealed, our economy is in danger of bankruptcy thanks to the stupidity of those banks and the regulators who allowed them to lend such vast sums without proper capital cover. Brown and his chum Ed Balls (the man who would be Chancellor) are directly responsible for our dire situation.

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