Recession: Borrowing caused the crisis - it cannot be the solution

Telegraph
"The country faces a severe economic decline. The Government is trying to print money, slash interest rates, expand public spending and borrowing, inject capital into certain banks, nationalise others, boost demand by an expensive tax cut, prop up certain companies and industries, while lecturing the banks to lend more. So far, none of this is working. The cruel logic of past mistakes is pushing the economy into a vicious downward spiral.".......Nationalising Northern Rock and the loan book of Bradford and Bingley were bad mistakes. Neither of these institutions can now make a contribution to new mortgage lending on current policy and given competition rules.".....Cutting VAT was about the worst way to try to stimulate demand, and has left us with a costly hole in the national accounts for little benefit. The escalation of the government borrowing requirement, mainly through the mistaken bank nationalisation policies and the VAT reduction, is alarming."
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