I was alarmed to read that the powerful shareholders group, the Association of British Insurers wishes the Bank of England to make liquidity support available for all solvent banks (Guardian, Another day, another bail-out, 29th September).
Their request begs the question of why a solvent bank should need liquidity support?
It also raises the question of whether the Association of British Insurers is itself perhaps feeling a little wobbly today?
It is devoutly to be hoped that the recent generous interventions into the financial markets by the governments of the UK and the US will have the desired effects. Now our Government must make it clear that enough is enough. There is a limit to the amount of money that they can lend out. It is a pity that the money-lending institutions did not work to the same rule.
There is no guarantee that the bail outs are going to work.
If the markets crash anyway, all these billions of taxpayers' money will disappear into financial nothingness.
Rather than pledging to bail out banks ad infinitum, Government should make clear that Bradford and Bingley is the last bail out, and that Government will now reserve its financial clout to give homeowners who cannot pay their mortgages a new "Right to Rent", and to do the real things in the real economy that are needed to help us survive the coming energy crunch, namely, the Green New Deal.