BANKS: BIG BANKS ALONE COULD NOT CREATE THE 2010 BUST
 

 

Bankers are just froth on the flood tide.

BanksProperty owners voted in governments which would give them the property bubble.

Consequence: thousands of free rider oldies would become property millionaires in Britain. Around the world many millions of oldie fat cats, would share mega trillions in property gains whilst they slept or celebrated in night clubs.

On the back of the flood tide, it wasn't only bankers but estate agents, mortgage brokers, insurers, conveyancers, surveyors and every other property middleman that was taking their percentage. Retailers boomed as did government tax coffers.

Bad-Economists in the US, Australia, New Zealand, Britain, Ireland, Spain and elsewhere persuaded naive treasury officials in the 1980s, that "freedom was blowing in the wind".

Economists admit they are neither scientists nor engineers. Yet they were allowed to dismantle financial barriers, dams, conduits and rules without experiment, risk assessment and limitation.

                 Bad-Economists pretended that Socialism was discredited and that "markets"
                should be set free. Western Governments ignored inconvenient truths. All western
                administrations were riddled with market interventions "due to supposed market
                 failure" in health care, education, transport and many other spheres.


The scale of these interventions was immense and paid for by taxes which were hugely damaging and distorting to each economy. Nearly 50% of western economies were state managed and funded. Within these "state territories", soviet style shortages, over-manning practices, target practice, cover-ups and failure were the norm.

Here was fertile ground for economists. They chose to ignore this difficult territory of education and healthcare. Instead of insisting on reform here, they recommended world-wide "set the markets free" agenda.


                Western politicians were desperate for a new economic mantra which might temporarily
               deliver prosperity to the third of their constituents who remained stubbornly impoverished.
               So, cynically and recklessly, they unleashed "market fundamentalism"
               (see MARKET FUNDAMENTALISM) which despite evidence to the contrary,
               oldie-voters pretended would float the poor out of their sink estates.


But where to would they float? Blair was the darling of the kultura kids. The poor were supposed to float upwards not into next door but into mythical Hampsteadian-like utopian tower-blocks distant from his cultured neighbours who admired Pinter.

What happened instead?
The predicted property bubble would leave the have-nots stranded high and dry.
The flood tide would give a free ride for all the best located.
But those stranded in sink estates would remain stuck, unconnected to vital INFRA
which would give them routes out.
Poor rail & tube links. Schools & healthcare too distant from good jobs and plagued by gang culture.


THE BOOM TO BUST WAS A DELIBERATE OLDIE PLOY TO ENRICH AS MANY WINNERS AS POSSIBLE - and go hang losers and those already way behind.

 

 

 

 

 

 

_______________________
Source:
[1]