Most people now seem to agree the Regulators should have been tougher on banking cash and capital in the private sector, to stop the private sector credit excesses.
Instead of talking about how to prevent the last crisis, as they are now doing,we need to look ahead.
Shouldn’t the Uk Regulator today be warning about excess credit and borrowing in the public sector? And shouldn’t a tough Regulator be taking action to ensure that does not get out of hand? Don’t they have a view on how much banks should lend to the government, and on how much money should be printed? That’s all pretty important to the stability of the system.