The lie of this government that Labour caused the deficit crisis is now exposed for what it is. With the failure and bailing out of banks in Ireland: Allied Irish Bank (AIB), Bank of Ireland (BoI), Germany: Landesbank Baden-Württemberg (LBBW) Deutchse Bank (DZ) and Deutsche Indusriebank (IKB) … I won’t continue the individual list but France is spending in excess of €360 billion, Spain may have to spend €35 billion … the EU estimates that the total cost of bailing out effectively insovent banks in Europe alone could be €19 trillion; reading facts like that focuses attention to the true cause of our problems.
It is farcical of this government to go on with tawdry mantra that the previous government is responsible for the woes in the UK. Governments are NOT in the business of micro-managing financial institutions but have rightly financially supported them during this crisis. The biggest bank shake-out in decades was largely caused by banks over-extending themselves on lending, and hedge funds that actively sought to seek advantage of the distortion between actual share prices and true value, which were considerably lower.
The fact that those on lower incomes are destined to pay the most to ease the deficit burden in the UK says more about the shabby ideology of the Conservatives, with the Lib Dems supporting them, than it does about who is actually to blame for the fiscal fiasco in the first place.