Global problem or self-inflicted wound?
The government has unveiled a second package of measures aimed at getting the banks to start lending again and helping the economy off its knees.
The new package follows last October’s 37 billion pound bank bailout which ministers have reluctantly had to concede was not enough. It may have shored up their capital positions but it did not prompt them to start lending again. The latest plan aims to give them a hefty nudge in that direction by offering them insurance against losses and guaranteeing their debt.
“This is a global financial problem affecting us all,” Gordon Brown insists at every possible opportunity as the Tories press their austerity line and seek to blame Labour for helping to create the conditions for the credit crunch.
Do you agree? Is Brown doing the best he can in a bad position caused by factors outside the government’s control? Or should the government have been more aware of what British banks were doing? And what do you make of the latest bank package?