Thursday, 22 October 2009

Mervyn King is right - the economy is changing and we're blindfolded, without a map

Telegraph
"Mr King raised two issues: first, we are missing an opportunity to overhaul the structure of the banking system; second, we have yet to work out how we will run our economy in the future. ......So, the argument goes, casino and utility should be separated. That this is a problem, and that something needs to be done about it, is hardly new. Such was the idea that underpinned America's Glass-Steagall Act of 1933, which split investment banks from their main street counterparts, until it was repealed during the Clinton administration. It was one of the key issues raised in a report written for Gordon Brown by the industry expert Don Cruickshank, back in 2000 – and conveniently ignored."

No comments: