From the TUC

Who is to blame for the banking crisis?

12 Mar 2009, by in Economics

There is much debate about where responsibility lies for the banking crisis, but until yesterday it had not occurred to be that it might be the fault of co-habiting couples. But then I read about the views of Tim Montgomerie at Conservative Home, who writes that:

“The proximate cause of the banking crisis was the increase in couple cohabitation and the banks supine acceptance of the government’s promotion of “every choice of lifestyle”. The banks lent money to couples who were unlikely to stick together.” – Nick Gulliford has posted the above thought on the thread below Michael Fallon’s indispensable Platform article. It’s a very uncomfortable thought but I bet Nick is partly right. All the stats point to much greater instability in cohabiting relationships. I’d certainly like to see the data.

If only more people were married we could have avoided the sub-prime crisis? I think not.

One Response to Who is to blame for the banking crisis?

  1. Robert Day
    Mar 12th 2009, 11:19 pm

    I put the blame rather on the UK’s continued reliance on low wages making debt a vital part of a very large number of people’s essentials for life. This isn’t about indigent families rushing out for foreign holidays and the latest plasma tv – rather, it’s more a question of needing essential repairs to car or house (or both) and not being able on low wages to afford these things without borrowing; and then it becomes so very easy to say “Well, for an extra £5 a month I can borrow enough to treat myself to something nice on top of the essential stuff…”