Image by stumayhew via Flickr
There have been far too many people who want to blame the debts in which the world’s developed nations find themselves on the banks and the people who run them.
They are wrong to do so, the fact is that just about all of those nations, including the UK, were running deficits before the banking crisis began to take hold in 2007 and 2008.
Therefore the need to bail-out banks compounded an already growing debt problem. Nonetheless the fact that banks needed to be bailed out at all warranted a root and branch restructure of the industry and The Independent Commission on Banking Vickers Report seems to provide a framework for that to happen.
Making it easier for people to switch accounts, the establishment of a new large high street bank and increased transparency are all things that ought to help customers and prevent a repeat of 2007/8.
However in the end the biggest security policy would be the taking to heart of the basic lesson that banks, governments, organisations and individuals cannot spend more than they can earn or that they can afford to pay back, it really is that simple.