Friday, 9 December 2011

Quote of the Day

It's rather long, and it's a month old, but it could not be more interesting or relevant.

It's an interview with John Kay of the FT, by Polly Curtis at The Guardian, originally posted on her blog. She is asking him about the consequences for Britain if the Euro were to collapse. This is what he said:

There is a desperate anxiety in the financial community to say that unless governments give us lots of money and pay off our debts the world will come to an end - without being very specific about how it comes to an end. We are enthralled to the financial community as we were in 2007 and 2008. They are saying if you don't give us loads of money we will bring the world as you know it crashing down around your ears. To some degree they can do it, it's not an empty threat.
As far as an ordinary British business is concerned if the eurozone collapses new currencies are created and some go up and some go down. That's what happens. But the real impact is what happens in the financial sector and how that impinges on them. That's the story of 2007/08. It was the knock on consequences if you couldn't get a loan from your bank rather than a crisis in America. As in 2007-08 this is a financial sector problem and that sector will work very hard to make it into a problem for the rest of us one way or another. Until we tackle that culture, it will keep reoccurring.

For absolutely no good reason,  I have decided to illustrate this with a photograph of men rowing a boat during the 1953 floods in Harwich, photographer sadly unknown:

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