Thursday, April 17, 2008
Gordon is naive and desperate: the banks are doing the right thing
Camilla Cavendish in the Times says that the attitude of the banks is correct and it's Gordon Brown who has it all wrong. Banks are trying to recapitalise their balance sheets by raising interest rates on loans and that's exactly what they should be doing as they were overstretched on a weak capital base during the lending boom. Now is the time for them to pull back and act responsibly. GB telling them to do otherwise is just naive desperation.