If interest rates were set to encourage saving, our economy would be wholly worse off. Money in a bank vault is good for nobody, not even the banks. Our economy absolutely MUST continue to grow. A growing economy creates employment and employment is key. Again, it isn't lending or the cost of lending that has created this problem, it is lending to those who simply could not afford it. People and companies alike.
Both yourself and Itpro are correct. We do need a free market where businesses survive and fail on their own merits (hence my dislike of the music industry and the proposed broadband tax). However, as Itpro states, our fiscal system must be well regulated, lest bankers and economists think they're creating wealth on anything other than paper.
Dave
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