A bank too far? – Michael Meacher MP

Ellen Brown alerted me to this article in hers on Fannie Mae and Freddi Mac. Michael Meacher MP sees the following reasons for the Northern Rock crisis:

  1. ‘cheap’ money due to low interest rates for super-charged short-term gains in private equity buy-outs
  2. Fiscal concessions to the City: ‘taper relief’ (1998) and reductions in waiting perdiods
  3. Systematic manipulation of complex derivatives
  4. The unravelling of the sub-prime housing market in the US
  5. The failure of regulation.

Michael Meacher MP goes far in his descriptions:

  • breakdown potpourri
  • collapse of accountability in financial markets
  • political legitimacy of modern finance capitalism
  • re-regulation is necessary
  • the banks have failed the public interest so badly
  • they privatise their gains and socialise their losses
  • insider enrichment
  • systemic fragility.
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