No Will, that's tripe! The rates were kept ARTIFICIALLY HIGH by OUR Govt.. There was never a CELING on the bank rate, it was a FLOOR (can't go below). The banks would have charged LOWER interest rates EXACTLY as they were DOING in the USofA!
....And perhaps you'd like to remind us, which 'paragon of virtue' state DRAGGED us into this disaster.
However, the interest rates were a MINOR part of the problem. The problem was that we (all the countries) had DE-regulated the banks and allowed them to do 'trade' form which they were FORMERLY BANNED! And it was THOSE trades that went BALLISTIC and the FAILURE of those which is the REAL cause of the problem. Coupled with allowing those BANKERS to tie their own personal INCOME to an INCREASE in such Toxic Trades made this CRASH a C*E*R*T*A*I*N*T*Y!
The banks have NOT been OVER regulated.... they have been allowed to do ANYTHING they WANTED....... including BANKRUPTING ENTIRE COUNTRIES!
ian
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