Catch 22? Is it really such Wonderful News that Government Borrowing is Down?
The Banking Crash of 2008/9 could have been an utter disaster personally for millions of families. While we can criticize Brown's Labour Government for its "light touch" banking regulation - which contributed to that crash - we must also be immensely grateful that they they acted so promptly and decisively when disaster struck. Huge sums of money were pumped into the banks to keep them going and many were effectively nationalised. However this was very expensive indeed because most of that had to be borrowed - at high interest rates. Then for several years the high interest rates meant the debt continued to rise slowly.