Monday Scrutineer: Why We Should Have Let Rbs and Hbos Fail
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Summary
TAXPAYER rescue of Royal Bank of Scotland and HBOS may prove to have been the worst solution: "zombie" banks, a prolongation of the crisis and a recession deeper and longer than would otherwise have been the case.
The GBP 200 billion that the IMF estimates to be the cost of the UK bank "rescues" would have been better spent on massive tax cuts. This would have spared us the worst of the recession and secured recovery earlier and more robust than the years of sturm and drang that now lie ahead. This constraint on growth will cause the failure of many thousands of businesses that might otherwise have had a reasonable prospect of survival.See the full content of this document
Extract
Monday Scrutineer: Why We Should Have Let Rbs and Hbos Fail
So argues Andrew Lilico, a leading specialist in financial sector regulation, in a provocative paper, What Killed Capitalism (*) published today. He argues the emergency responses have made a devastating crisis ...
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