More on the origins of the credit crunch

Apologies for the slow posting. I've been laid a bit low for a couple of days.

My search for the origins of the credit crunch goes on. Having watched this video of a big-time American financial whizz (with the most delightful James Stewart accent to boot) explaining what happened, I think I may finally be beginning to get the gist of it.

This is relevant too.

Comments

[Kit]

I would recommend econtalk.org and its archive of podcasts. This is a good history lesson to start with:

http://www.econtalk.org/archives/2008/09/kling_on_freddi.html

[Peter MG]

Only half way through the video, but it ties in nicely with what I am picking up from work. Clinton and Greenspan will not be looked upon by history as kindly as those that live through their reins currently do. As for Blair & Brown, I think they will be seen as the ruination of our nation. Currently Brown is clueless. He caused an un-necessary run on Northern Rock by leaking details of their request to the bank of England, he then dithered, and then when everything got completely out of hand he nationalised them. He then forced Lloyds to merge with HBOS ruining 2 banks rather than just one. RBS’s problems are due to an ill judged purchase in their headlong charge to be the biggest, encourage by their friend Mr Brown.

The one thing the public are not hearing at present is the truth or anything resembling the truth. Government interference and regulatory failure are at the heart of this crisis.