The American Bear

Sunshine/Lollipops

Stat of the day | thecurrentmoment

In an otherwise curious article critiquing traditional Keynesian policies, British peer – and Labour guru – Maurice Glasman writes that:

“Of the £1.3 trillion lent by banks in the British economy between 1997 and 2007, 84% was in mortgages and financial services”.

This clearly suggests a change in the function of the banking system in the UK: rather than lending in ways that contribute to large-scale capital and labour intensive projects, it has been the facilitator of a debt-dependent growth model.

I haven’t seen the same stats for the U.S., but if I had to wager a guess, I’d say we’ve got the same problem here.