Many people across the political spectrum remain angry about the conduct of some in Wall Street and the City in the build-up to the financial crisis and, particularly among Mr Corbyn’s political base on the Left, it is widely believed – as he asserted in his video to supporters – that the financial crisis was used as an excuse by the Coalition government, elected in 2010, to row back state spending.
Unfortunately, on this occasion, a lot of Mr Corbyn’s allegations fail to stand up to scrutiny.
Morgan Stanley – whose directors include Alistair Darling, the last Labour Chancellor – received no rescue from the UK government in 2008, while it can hardly be said to have “crashed” the UK economy. The banks needing rescuing by the UK taxpayer were not the investment banks Mr Corbyn accuses of being “speculators and gamblers” but commercial lenders such as Northern Rock. Nor is it true, as was being widely suggested by Mr Corbyn’s supporters on social media, that Morgan Stanley still owes US taxpayers money in respect of the post-crisis bail-out.
– Ian King, pointing out that Corbyn is lying.
The GOVERNMENT interventions that caused the housing market mess in the United States are examined by Thomas Sowell “Housing: Boom and Bust”.
And the general financial crises around the world was caused by the Central Bank (i.e. government backed) expansion in the Credit-Money supply – that was the bubble that burst. And the government backed Central Banks have created another such bubble NOW. See such works as “Meltdown” by Thomas Wood, or “Where Keynes Went Wrong” by Hunter Lewis.
I am no friend of the bankers – although for the opposite reason to Mr Corbyn. I believe that all lending should come from REAL SAVING – not credit expansion (whether government backed, as with the Benjamin Strong bubble of the late 1920s or the Greenspan bubble of more recent years – or WITHOUT government backing). But that would mean much HIGHER interest rates (to get people to save) – and that is not what the left wants. Although the left will take advantage of the Credit Bubble bust when it comes.
As for the great roll back in government spending – a vast shining LIE.
A lie not just of Mr Corbyn or even just of the BBC and co – many “Conservatives” (such as Mr Cameron and Mr Osborne) pushed this LIE as well.
Yes some departments have been cut (local government support), but overall government spending has seen no great roll back – in fact the Welfare State is BIGGER THAN EVER.
Mr Corbyn even blames the fire in a London housing block on this “profits before people” LIE he comes out with all the time. Actually the building just had nine million Pounds spent upon it before the fire – indeed the wild spending may well have changed the building in ways that MADE THE FIRE SPREAD.
Yes – government spending is not a just a waste of resources, it often directly makes things WORSE.
Corbyn isn’t lying, he just doesn’t know, or want to know the truth.
This is the case for most of his policies and I doubt whether he really understands what Momentum’s goals are or what they are trying to achieve.
Thomas Sowell also pointed out that these interventions were a mathematical nonsense in a brief discussion in his “Race and Economics”, which he published in 1994. Mathematically idiotic reasoning was deployed in 1992 to justify claims of racism in the housing market that required the election of Bill Clinton to fix. In 1994, they were being translated from PC narrative into regulatory orders. I have no doubt that “Housing: Boom and Bust.” covers it in far more detail (I’ve not read it yet) but I always find it significant when someone explains something beforehand.
What Paul said is expressed here by ‘Rap Master Hayek’. LOL. The latter part of his redressing of Keynes rhetoric is worth waiting for.
https://youtu.be/d0nERTFo-Sk
Corbyn neglects to mention that his predecessors in government declined to put a bit aside or reduce the debt when running a surplus but instead decided to splurge the lot on public sector workers and immigrants, principally to expand their voter base, and borrow even more doing so, thus putting us in a precarious position when the sh*t hit the fan, a policy that he would continue with to a much higher degree, and make the country even more susceptible to world economic affairs.
Also, the claim that “greedy” bankers engineered the crash fails to give a reason why this would be so, wouldn’t they stand to lose the most, bailouts notwithstanding?
As a failed marxist clinging on to power (and life as well) he is nothing more than a “greedy” politician himself.
Corbyn managed to scrape two “E” grade A levels, and a year at a poly before dropping out. He just isn’t an intelligent man.
However, he has devoted his entire adult life to extreme left wing causes. It has actually cost him at least one marriage. So clever, no, but fanatical, certainly.
Corbyn might not know much, but extreme leftism and entryism are two things he does. He and John McDonnell know exactly what Momentum is up to, and they support it wholeheartedly. They are the two most dangerous men in Britain, and thanks to the pathetic May government, could end up in charge. That would probably be the end of Britain.
“Jeremy Corbyn has stretched his lead over the Tories to eight points – the largest gap in any poll for five months. The poll by Survation, which was the only company to accurately forecast June’s General Election result, puts Labour on 45 per cent, with the Conservatives trailing on 37 per cent. ”
Almost half of Britain would vote for someone who cheered the destruction of Venezuela. This mindless self-destruction used to be limited to the Third World.
Corbyn isn’t lying, he just doesn’t know, or want to know the truth.
This is his “nice old man” act working. He knows full well where his ideas lead. How could he not?
Wh00ps
Corbyn is the guy who confessed on TV to not knowing the difference between the single market and the customs union.
I suspect he is seriously dim and lazy.
Who needs knowledge and understanding of facts when there is an ideology?
“Corbyn is the guy who confessed on TV to not knowing the difference between the single market and the customs union.”
Didn’t he also claim that issuing bonds isn’t borrowing, or was that one of his henchmen? He’s either as thick as about half a dozen short planks or monumentally evil. As so often in politics, it’s very hard to tell which. (Personally, I tend to think he’s the dimwitted patsy for a gang of very dangerous men, but who really knows?)
Either way, of course he can’t tell the truth. What’s he going to say? “The policies I advocate are identical to the ones that brought about the financial crisis, except where they’re even more idiotic?”
I suspect he is seriously dim and lazy.
I dunno, maybe it’s the Dunning-Kruger effect but I have a hard time ascribing to incompetence that which could be ascribed to malice 😉
As they say on the interwebz: why not both?
Taking cue from Alisa:
“Who needs knowledge and understanding of facts when” squinching your eyes shut and shambling forward in ignorance of the terrain only takes 20% of the effort and, famously, will get a whopping 80% of the results?
Lots of good comments – by Niall and others.
Of course it went from “you are not lending money to black people – you RACISTS”, to “you forced Your loans on black people drowning them in debt – you RACISTS”.
Do not do X – and you are “racist”, do X – and you are a “racist”.
The “logic” of the education system and the “mainstream” media..
So, when my brain surgeon puts in 20% of the effort, I rejoice in the knowledge that I will get 80% of my brain back. 🙂
If Corbyn seemed smart, he would have more of a lead, and Britain would be in serious danger!
Maybe Corbyn isn’t lying, he’s just being frugal with the truth.
It matters not whether he is lying; the banks are widely loathed and many people want them “punished”.
Corbyn will win the next General Election.