YOUR LETTERS

I thought your leader article ‘The Blame Game', which appeared on Saturday 19th October, was particularly relevant in throwing light on the global financial crisis. However, I don't think it went far enough.

As someone who has little time for EU institutions, I have to say that they come out of this fracas with a drop more credit than their US counterparts. But only just. And why? It is now a known fact that the whole crisis was caused by Bill Clinton when, as President, was persuaded by the likes of Roberta Achtenberg, a loony left wing Democrat who, amongst other matters campaigned to end funding for the Boy Scouts unless they recruited gay scoutmasters, and then put her in charge of ‘Fair Housing and Equal Opportunity'.

This policy was to give ‘economic empowerment' to Ninjas, that is those of No Income, No Jobs and No Assets.
This lady, aided and abetted by Mr Clinton, went on to threaten law suits against banks, and the likes of Fannie Mae and Freddie Mac, if they didn't offer credit to those with non existent or low credit ratings. Thus the creation of sub-prime borrowers.

This toxic debt, forced on American financial institutions, was subsequently wrapped up in more digestible form, and sold on by those same institutions to their counterparts in Europe and elsewhere. Thus the crisis, and loss of confidence by banks wishing to trade with each other.

European bankers should have known better than to accept some of this toxic waste but the real culprits in the present predicament are governments, who have spent and borrowed too much, and have not the slightest idea on regulating financial systems.

Sadly, some US, UK and European banks are now under government control which augurs ill for the future of those institutions. Can you imagine the effect this will have on customers, employees and shareholders? It is called the dead hand of the state.

Thank you Bill Clinton.
Yours faithfully

Andrew Ferguson