It’s 10 years to the day since Lehman Brothers collapsed into bankruptcy and practically nothing has been done to rein in the excesses of the mega-rich speculator class who created the Bankers’ insolvency crisis.
First the entire establishment class rallied around to ensure that their mega-rich speculator mates wouldn’t lose out as a result of the crisis they caused with their reckless gambling, with bailouts, and quantitative easing cash galore to prop up the value of the assets of the rich.
Then Tories cynically used the bankers’ economic crisis as an excuse to impose ruinous austerity dogma as a means of pushing the cost of the crisis onto ordinary people through wage repression, in-work benefits cuts, welfare cuts for sick and disabled people, local service cuts, etc.
Meanwhile the Tories actually rigged the economy even further in favour of the mega-rich by slashing corporation tax, slashing taxes on the mega-rich, and lavishing the speculator class with ridiculously one-sided outsourcing contracts, and handing them massive chunks of public infrastructure and services at bargain basement prices (like the Royal Mail) or even for free (like the state schools given away to private academy profiteers).
The bankers’ insolvency crisis called for decisive action to ensure such a meltdown could never happen again. Action like breaking up the “too big to fail” banks, restraining the ridiculous short-term bonus culture to make financial rewards dependent on the long-term sustainability of the institutions paying them, jailing the most reckless and fraudulent of the financial sector gamblers, increasing competition and diversity in the financial sector, reducing the amount of wealth that gets funnelled into non-productive areas of the economy like property price speculation and the vast global derivatives casino …
But instead of decisive action nothing was done, so that the property bubble and the the global derivatives casino have continued sucking vast amounts of wealth away from the real productive economy.
But what’s even worse is what the Tory response to the bankers’ crisis taught the mega-rich speculator class.
It taught them that financial crises are absolutely fantastic news for them. Their losses will be protected through bankers’ bailouts and obscene policies like quantitative easing, while the cost of the meltdown is borne by the poor and ordinary.
And now, instead of waiting for the next crisis to come along (when the housing bubble bursts, or major banks gamble themselves into insolvency on the global derivatives casino again) the mega-rich speculator class are seeking to deliberately cause the next crisis.
They know that they can plunge the entire UK economy into a much bigger crisis than the bankers’ meltdown if they can ensure that the UK conducts a “no deal” flounce out of the EU.
If they know exactly how and when the crisis is going to occur, the opportunities for making £billions by betting against Britain are obviously absolutely huge.
Then once they’ve made a killing by betting against Britain, and against the elements of the real economy they know will suffer huge losses in a “no deal” meltdown (manufacturing, haulage companies, leisure and tourism, aviation, shipping, agriculture, the automotive industry …) they can pile back in with the £billions they made by betting against Britain in order to buy up masses of distressed British assets on the cheap.
The UK establishment response to the bankers’ crisis created moral hazard by proving that the state would not let the mega-rich speculator class fail under any circumstances (even when they gambled themselves into insolvency).
Tory austerity dogma made the moral hazard even worse by demonstrating that the Tory party would deliberately load the cost of the crisis onto ordinary people, whilst actually rigging society even further in favour of the mega-rich speculators who trashed the economy in the first place.
And Brexit is the culmination of this truly outrageous response to the bankers’ crisis.
First the Brexiteers used the wave of public anger at the consequences of austerity madness to deliver the Brexit vote, by attacking immigrants and the EU as the reason wages were collapsing, public services were failing, and poverty was rising …
And now they’re seeking to use this Brexit vote as an excuse to deliberately trigger another economic meltdown so that their greedy billionaire speculator mates can make even bigger fortunes on the social and economic suffering of the rest of us.
You’d have to be a fool to not see how the shockingly inadequate response of the establishment class to the bankers’ crisis, and the imposition of ruinous hard-right Tory austerity dogma are responsible for the absolute state of Britain ten years later.