UK GDP declining nearly at Great Depression rates

[SamuelRSmith]

NJ5 said:

kowenicki said:
@nj5

I aint claiming that, but its clear that governments arent prepared to let a single financial institution go to the wal any more. Lehman was a huge mistake and they cant repeat it....

Will those same governments bail out hotels, bars, restaurants in puerto banus, marbella, vilamoura etc etc etc?

Do you know what's the last country which had that philosophy of not letting banks fail and trying to buy some of their bad assets? Hint: the name starts with a "J" and ends in "apan".

That philosophy is proven not to work, yet it's exactly what the Western governments are doing today.

 

You can't just take one piece of history and say that it will happen again, especially not in the economic world. There are so many factors involved in things like this that you can't just discard it because the idea wasn't successful before. It might not have been the Government taking control of the banks that was the problem, but what the Government did once it had control.

So far the UK's Government's schemes have proven to be quite successful in the short term (banks are becoming more profitable, lending more), and we won't know the long term effects for a few months now.