Bad banks or bad capitalism?

November 19, 2009

The Spark November 2009 Philip Ferguson

One of the issues that has arisen with the current recession is the responsibility of banks for the partial meltdown in the financial sphere.  Sections of both the left and the right had traditionally targeted banks, a practice that has become more pronounced with the new recession.  For instance, on January 19 this year the Financial Times in Britain even ran a headline saying “Shoot the bankers, nationalise the banks.”  In New Zealand, Federated Farmers has accused banks of “profit-gauging” – rather rich when you consider the amount of profit made by Fonterra!  Traditionally, in New Zealand, right-wing nationalists such as Social Credit targeted the banks, a reaction to the fact that the social base of that movement – small farmers and small businessmen – were often squeezed by banks in terms of credit, mortgages, loans and so on.  Read the rest of this entry »


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