Quid No Pro - The Banks Still Aren't Lending
As Gordon Brown took to addressing the Trade Unions today one feels the real powerhouse that controls the Labour Party today is actually the huge Banking
Lobby. Having somehow explained away how the invisible hand stole so much and why
we had to bail them out it seems that they have come up with a new ethos 'Quid No Pro'. No-one is denying that they had to be bailed out (apart from the Tory party
of course) but the payback was that they would start lending 'sensibly' as soon as
feasibly possible. Instead banking bonuses are back in the headlines because it
turns out that the banks have realised that with credit your business can return to profitability! The very situation all their small business customers desperately want to be in.
There seems to be complete confusion on how to deal with these institutions.On the one hand the Government doesn't want to force their hand, on the other the government wants institutions to take it upon themselves to lend. Institutions that have shown themselves hopeless at any form of self regulation. The end result
is that NO decisions are being made. The overall effect on the economy will be mass unemployment with the unemployed becoming increasingly unemployable. If banking bonuses
were based on the number of businesses brought back to profitability this could kick start the economy in a positive way. Cuts alone won't reduce this massive deficit and if they are done as a matter of dogma or political bullying it may harm any recovery. We need bold and brash state intervention to kick start this economy (Apparently it works for the Chinese!). That will probably mean uncomfortable decisions politically on ID Cards and Trident.
However if the stranglehold the City has on government isn't broken by brave politics and if greater financial ingenuity isn't used to correct the incentive schemes for mostly state owned Banks then the UK won't make it through the recession, but London, as some type of Monte Carlo for the very rich,perhaps will.
A more fitting Ethos By Those in Power should be Quid non pro patria?( What would not one do for his country?)