16 Jul 2011

Are we days away from a second, deeper global crisis?

I read this yesterday in Larry Elliott's article here: "Privately, some senior bankers are saying that Europe has a matter of days to get its act together before an implosion of the single currency triggers a second phase to the global financial crisis. Be clear: were that to happen it would make the recession of 2008-09 seem mild by comparison."

It’s hard to believe as Compass write, "that three years after the worst financial crisis since the Great Depression; which resulted in tax-payers bailing out Britain’s banks to the tune of £850BN that so little has changed. Even Mervyn King the Governor of the Bank of England said recently that “Of all the many ways of organising banking, the worst is the one we have today.”"

The Independent Commission on Banking led by Sir John Vickers, which has been charged with the task of coming up with a range of recommendations for the Government to adopt is coming under intense lobbying from the banking sector. In essence they are using bailout money to lobby for the right to be bailed out again. Compass are asking folk to write to the Commission here with their three suggested proposals:http://action.compassonline.org.uk/vickers

Well we are certainly in a mess - I am not sure even those measures go far enough - a Positive Money video shows the extent of the challenge - see 3mins of it here. I am seeing if Transition Stroud might be able to show the whole film in the Autumn - hope that is not too late!

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