10 Years On…The Bank that Almost broke Britain!
Posted on October 4, 2018
Sometimes it is hard to understand why Britain has become such a messed up place. When I saw Theresa May merrily dancing on to stage the other day like the good times were rolling, I thought three things.
1/ is her PR advisor secretly employed by Boris Johnson?
2/ how can austerity be over when there is the real potential she is about to drive Britain off a cliff?
3/how on earth did Britain come to this?
Then, struggling to sleep courtesy of head cold that makes me sound like a Sean Dyche impressionist, I came across a documentary that was hidden away on BBC IPlayer with a show time of 23:15 on BBC2.
Everything that has gone wrong with Britain stems from that fateful week in October in 2008 when the banking industry collapsed under the weight of billions of toxic debt, leaving the Labour government (who had been hypnotised by RBS and the tax revenue they were creating) to bail them out just hours before cash machines stopped working.
The main (but not exclusive) villain was RBS, headed up by Fred (The Shred) Goodwin, a mean spirited individual who bought up companies in the financial sector for fun, including banks that’s that were already failing and/or carrying toxic loans known as subprime mortgages.
‘Subprime mortgage’ is the technical term for giving someone a mortgage they can’t afford to pay back and there were hundreds of thousands of them in America, taking the down the banking industry as they collapsed. It was incredible stuff and an example of the reckless nature of the financial sector.
What this has caused since is distrust, blame and hate towards both mainstream political parties who let deregulation go unchecked (I suppose that is why it is called deregulation) with the average tax payer in the street copping the bill whilst Goodwin walked scot free with an £800k pension (later reduced by a third).
As a consequence, since 2008, we have had three general elections (including 2 hung parliaments) and a referendum, resulting in a broken nation where one end of the political spectrum wants to regulate Britain to a standstill and the other is salivating at putting every public service up for sale to highest bidder and turning the UK into a tax haven. Remarkably, any politician (of any colour) trying to find a middle ground, is now deemed a lunatic.
The lack of trust in established politicians has led to the rise of the political underdog, hence the madcap ideas banded around that people, who used to seem normal, are embracing. Jacob Rees-Mogg for example, used to be seen as a jokey cartoon figure from the nightmares of a Dickensian chimney sweep; now people actually taken the mad fucker seriously.
Rees Mogg may have been carefully placed in the spotlight in an attempt to normalise Boris Johnson and I must admit, when they had that ‘Hard Brexit’ seminar the other week, I thought they might come up with something plausible to the politically naive. It was shit, really shit, but still it didn’t seem to damage them. It seems that the more preposterous they become the more likely they will seize power from the mad dancing queen.
When I saw Theresa May on Wednesday, it seemed pretty apparent she was, under the weight of the Etonian disaster created by Cameron and Johnson, on the edge of being straight jacketed. You could almost feel sorry for her until you realise that being married to one of the bastards who took the country the cleaners in the first place, she is in a win, win position with regards to leaving EU.
Whilst I hold no particular candle for the Jeremy Corbyn ideology, I can see the temptation behind aggressive regulation to stop a repeat of the lunacy of 2008 and the subsequent price that innocent people and small businesses had to pay for the folly of bankers, none of whom were arrested or jailed for their crimes. Some say no crime was committed but how can busting the economy be acceptable?
I lost three clients to the financial crash in 2008 and they lost their homes and income. Meanwhile, as the clocked ticked towards financial oblivion, Goodwin had to be forced to resign as RBS Chief, but not without a pension pot the majority of us couldn’t have even dreamed of.
His reward for smashing the economy is £500k a year paid by the taxpayer and a Kingdom that is a million miles away from being United again.
His penalty has been the loss of his knighthood and a few cursory glances at the golf club.
Whoopee fucking do!
See ‘The Bank that Almost Broke Britain’ by clicking here.