Why should I lie awake in the middle of the night thinking about the next financial crash, when we’ll again see failing banks and governments frantically trying to stabilise ‘confidence ‘?
Of course there will be another financial crash. There always is. It’s built into the system.
Maybe next time we should apply some common sense, says my feverish nighttime reverie.
- Put failing banks into special administration, keeping current contracts going where possible.
- Remove and investigate bank directors, recovering mis-spent money where possible.
- Break up big banks rapidly into saleable and social banks eg regional banks.
- Crucially, the money it costs should be created by central banks as ‘sovereign money’, not taken from the people and public services by increasing public debt and resulting ‘austerity ‘.
- Of course this will slightly devalue the currency, but then that is simply a recognition of its true value in this situation.
Featured image of bank run 1933, via Wikimedia Commons