I'm not well versed in UK politics or economics but when you look at most financial bubble busts (in the U.S.) it usually stems from some type of government involvment whether it be subisidizing (housing), taxes (medical), etc. Bubbles will normally not form in a free market and/or not be as resounding due to basic supply and demand principles. The U.S. housing market bubble was perpetuated b/c no one in the industry or gov't wanted to stop the party. While you can point to poor regulation of the derivatives market as the point things spiraled out of control the over subsidizing by the U.S. govt in the housing market was the clear impetus of the problem. The centralizing of the U.S. banking system in the Fed which is clearly a Cartel, has caused dramatic loss of freedom both in U.S. citizens personal and financial lives. I have no opinion on Blair being the devil or what type of gov't the UK needs but I will always prefer dangerous freedom over peaceful servitude.


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