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Of course it was right to rescue the banks

First published : Prospect 1 /10/2018

Systemic banking crises are not pretty. They have dire economic, and often political, consequences. We have seen a few in the last 25 years, including in Japan (1990s) Mexico (1994/95), Asia and Russia (1997/98), and Argentina (2001), but none as systemically serious as the one that rumbled through the western world in 2007/08. So why did aspiring prime minister Jeremy Corbyn use his keynote speech to the Labour Party conference last week to attack the UK political and economic establishment, which, he said, “instead of making essential changes to the broken economic system, strained every sinew to bail out and prop up the system that lead to the crash in the first place”? Read on ….