Newsnight and the Credit crunch
It’s not good for my health, but every night I watch Newsnight on the credit crunch. Each piece seems to revel in the credit crunch, and every “editor” uses, at some point, the stock phrase “after twenty years of free market economics”. The implication, of course, is that free markets are to blame for the credit crunch, and the solution is an end to capitalism. Kirsty Wark has gone the furthest, and been the most absurd, by trying to force the shadow chancellor, George Osborne, to admit that the 1986 City big bang caused the credit crunch. Er, no. Big Bang turned London into the world’s leading financiial centre, and “free market economics”, over the last twenty years, have lifted hundreds of millions out of poverty. By contrast, socialism crippled countires like the old Soviet Union. I think we will find when we are through this, that Government meddling is at least partly to blame, not least Clinton’s decision to allow Fannie Mae and Freddie Mac to run down their reserves in order to indulge in risky lending.
Sue said on October 11th, 2008 at 4:49 pm:
I think the media have a lot to answer for in this as well. They seem to revel in scare mongering and IMHO just make the matter worse.
If your health is suffering from watching Newsnight - I have a simple solution - stop watching!! :p At least you’re not facing the possibility of losing your home, as we are…..maybe I should come to one of your Friday night surgeries for advice!
By the way, you’re welcome to come and see the great job the insurance company did on our flood damaged home - it looks great, but come soon, thanks to the credit crunch and my husband losing his job, we might not be here much longer.
canvas said on October 11th, 2008 at 4:55 pm:
I can’t believe you’re still banging on about Bill Clinton. I feel slightly embarrassed for you.
The boom and bust has several causes besides dodgy lending…a tide of cheap money from emerging economies…outdated regulation…poor supervision…government distortions. These failures didn’t just happen in the USA…
small government is now a thing of the past.