Vince Cable risks promoting another financial crisis
28 July 2010
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27 July 2010
Uncategorized
28 July 2010
Tax and Fiscal Policy
19 November 2024
Vince Cable suggested on Sunday that the payment of bank bonuses and dividends should be linked to whether or not they lent more to businesses. It is not clear exactly what he meant and there was no substantive mention of this idea in the Green Paper that has now been published. He seems to be all at sea and one wonders whether his ambition is to promote another financial crisis.
A few years ago, the IEA published a very good book, Fifty Economic Fallacies Exposed. I am beginning to wonder if Vince Cable should be the subject of the next edition. At the current rate, his fallacies could fill a whole book within the year…
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3 thoughts on “Vince Cable risks promoting another financial crisis”
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In the run up to this current global mess, governments (i.e. US, UK …) ‘encouraged’ banks, through various measures, to lend to those previously considered too high a risk. The solution was securitization which moved the liability off the loan books of the banks – this lead to massive asset inflation (housing), which in turn ‘popped’. The solution according to Cable is to wind the clock back and do essentially the same thing again – encourage banks to lend with the tacit proviso that all debt is de-facto tax payer backed … imbecile.
How right you are about the causes of the financial crisis,and how ill-deserved is Mr Cable’s reputation as some sort of guru. He can’t resist meddling, whether it’s the banks, mergers or graduate tax.
Oh yes, I also forgot about his latest comments on immigration. He was quoted in The Times today as saying that “my department” wanted a more liberal immigration policy. While I have sympathy with that view, “my department” – what proprietorial arrogance! – shouldn’t be lobbying in this way.