Tuesday, 30 September 2008
Hang on - a failure to bail out the banks isn't that bad news, surely?
Today's media coverage of the US Congress's refusal to adopt a £700 billion bail-out package for the banks is almost universally negative: it's being described as a disaster for us all, and the proof offered is the sharp share price falls around the world following the vote.
Of course, anyone with a pension linked to the stock market will lose out - but of course the stock market is always governed by the cycles of boom and bust, so none of us should be surprised when it all goes bust once in a while.
Surely a more sensible response to all this mess is to compensate the pensioners for their losses and re-regulate the banking and pensions sector to prohibit gambling with our future livelihoods in future?
It's no wonder that, facing an election next month, members of the US congress rejected a plan to do exactly the opposite: protect the fat-cats who got us into this mess in the first place from their losses in the hope of returning as quickly as possible to business-as-usual economics.