We grow nearer to the end of another decade and, yet again, a meltdown within the financial markets
looms. The BBC's Robert Peston
seems like one of the clearest commentators on the plunging fortunes (sic) of Northern Rock
. With the Bank of England having to bail out the high-profile Newcastle-based bank, various Conservative
and Lib Dem
MP's have gone on record questioning the Labour government's use of taxpayers' money to bail out a private enterprise. A solid point of principle (for once) and yet, without such emergency funding, might a wider systemic failure
be too extreme to contemplate in a climate where fear and panic are on the increase?
Capitalism will probably survive once again but, ironically, only because the much-maligned public sector will intervene and save all those rugged individualists and self-made titans of industry from their own faulty assumptions and arrogance-fuelled mistakes.
In another point of irony - and in the interests of full disclosure - your correspondent interviewed with Northern Rock earlier in the year for a Treasury position but was turned down. While disappointing at the time, it now looks like a godsend not to have ended up with a company that could soon join an infamous list in the history of finance and banking. There but for the grace of god and all that.
Labels: economic crisis, failure of capitalism, market instability, Northern Rock, sub-prime mortgage crisis, systemic failure