By Richard Laming
The scale and nature of the recent crash in the financial markets is leading to a rethink of the present model of economics and regulation. Can it really be tolerable, people are asking, for such risks to be taken by a banking system that, if those risks go bad, cannot possibly make good the losses itself?
Those few voices that asked that question during the recent period of growth have been joined by many more now that those risks have visibly started to go wrong. It is too early to say precisely what new regulatory framework might be established in place of the discredited old model, but the changes are likely to be far-reaching. The failure of the present model has been so comprehensive.
This is a question that will be asked around the world, but there is another question that needs to be asked in the United Kingdom. For the UK has seen not merely a failure of its economic regulation, but of its whole national economic strategy.
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