25.6.09

IN DEFENCE OF BANKERS

A reasoned defence of banking from Harris Simmons of Zions Bancorporation.

He denies there is any drought in bank lending. Even in the good times, he says, banks only provided 30% of credit to the economy. He confirms the figure that 70% of lending comes from outside the banking system.

This does beg the question, why governments (closely advised by bankers) thought we needed a bailout so huge that it puts the real economy (industries, corporations, small firms) at risk.

Thankfully Simmons doesn't give the more aggressive version of the banker defence: "Don't you realise how incredibly important we are to the economy. Nothing else could exist without us, dumbhead".

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