Interesting to see ConservativeHome using the morning to slap Vince Cable down. Even more interesting to see them outline the ‘specific pattern the crash took’:
- The requirement and arm twisting in the US for banks to lend to poor risks.
- Weak personal bankruptcy law in the US.
- The scandal of the mass government underwriting of mortgages through the securitisation process in the US.
- The encouragement through the tax code for banks to finance themselves through equity and not debt and the regulatory encouragement for insurance companies and pension funds to invest in debt instruments – a further spur to securitisation.
- The successive bailing out of financial institutions in the US.
So why does ‘it’s all Gordon Brown’s fault’ not get in after the election?