We're all guilty of causing the recession
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We are all guilty!
For causing the global meltdown, that is.
Forget the greedy bankers, it was everyone wot done it!
At least that’s the view of Royal Bank of Scotland economist
David Rea, the Chatham-born expert who came down from his new base
in Edinburgh to give a fascinating overview of current economic
thinking.
When I asked him about who was responsible for the economic
crisis, hardly expecting him to blame his own colleagues, he came
out with the classic line
"It’s like Murder on the Orient Express. No one is
innocent."
Actually, David, I’m sure one of the suspects is more guilty
than the others but no matter, it was a great line from a
profession that is not prone to graphic description.
The so-called dismal science is usually, er, dismal, but David,
who went Sir Joseph Williamson’s Mathematical School - dubbed
Rochester Math - had a refreshing take on economics.
He used another interesting word "Armageddon." That was what the
markets had priced into equities last year. But Armageddon never
quite happened, so shares picked up remarkably.
Economists - just like New Labour Government and Conservative
Opposition - are at each others’ throats over the sooner versus
later debate on fiscal tightening.
Rea had some kind words for the Government and Bank of England,
praising the way they have handled the crisis, hinting that it was
far better than in the early 1990s when interest rates surged to 15
per cent.
He is on the "later" side of the argument - tick for the
Government - but warns that too late will also bring problems. It’s
a tough call for whoever wins the election.
Meanwhile, congratulations to David on his forthcoming marriage.
He was coy about the venue - "somewhere in Kent or the South East"
- but you can be sure that his Medway folks will be out in force
for David's Big Day.
Friday, March 12 2010
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