Summary
In early 2009, with the real world still mired in recession and credit crunch, financial markets seemed on a different planet, rebounding strongly on the feeling that the worst of the downturn was over. There was much patting-of-backs at the perceived avoidance of a 1930s style depression and former PM Gordon Brown inadvertently boasted in the Commons of having 'saved the world', or at least the banks.
But the credit crunch and recession inflicted on us by those risk- taking and dysfunctional banks imposed a huge cost on public purses in many countries, made worse by the state picking up the tab for banks' dodgy deals.See the full content of this document
Extract
A Government Re-Think Could Inspire Confidence
Bond markets took fright at the resulting sovereign debt (although not in the UK's case it should be stressed) and governments then panicked by imposing misguided austerity measures. The latter had the effect of - at best - slowing growth and - at worst - pushing some economies back into double dip recession.
Stock markets...See the full content of this document
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