Jamie Whyte writes for Conservative Home

2 thoughts on “The Conservatives didn’t win because they rejected Thatcher’s beliefs – a small state and free markets”

  1. Posted 20/06/2017 at 10:02 | Permalink

    Small state ? I didn’t hear many shouting this when we coughed up to bail out an unregulated banking / financial industry after 2008. The state, ie us, came in quite handy then.

  2. Posted 21/06/2017 at 18:50 | Permalink

    To the previous respondent: Don’t confuse poor regulation with a lack of regulation. In 1997 Gordon Brown, as Chancellor, destroyed the previous banking regulation carried out by the Bank of England and set up the so-called tripartite regulation of the BoE, FSA and Treasury. This regulatory regime was a failure because nobody “owned” it, and so none of them ensured that banks were carrying enough capital. US mortgage lenders were strongly encouraged to lend into the subprime market by the US government, interest rates were inappropriately low on both sides of the Atlantic and French and German banks were stung buying Greek sovereign debt while the Greek government went headlong towards bankruptcy. So yes, the banks were poorly managed in the run up to the crisis, but the various national governments were not exactly innocent by-standers either.

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