1. "It was all the bankers' fault".
Because after all, no-one could have possibly predicted that when left to their own devices bankers would go for short-term gain and self-enrichment ahead of economic stability, could they? What next? Bears defecating in the woods? And the Government had no idea whatsoever that the City was parcelling up mortgage obligations and selling them on the open market; it had no idea that high-street lenders were offering 125% loan-to-value on houses, or that with so-called Lie To Buy (oh OK, Self-Certification) mortgages you could write any income you liked on the application form and no one would ever check whether it was true or not.
I'm wearied by my own irony - of course HMG knew about all these things; and did nothing about them. Why? Because the going was good, that's why. The City was booming, the High Street was thronged with shoppers, unemployment was low, house prices were buoyant (removed by one G Brown from the measure used by the Bank of England to target inflation), tax revenues were flooding into the Treasury coffers and then out again into the public sector. What was not to like? After all, the Chancellor told us he had put an end to Tory boom and bust. Where could bust possibly come from?
The Government rode the wave of debt like a surfer who can't believe there are rocks ahead. But rocks there were, and when the economy hit them Brown discovered a new variant on Keynes - borrow when the good times are rolling, and when the bad times come, borrow even more. And so the debt piles up, or at least it does as long as the gilt markets will carry on lending to us.
All the bankers fault. Yeah right.
