FSA watches Goldman Sachs case after link to city trader

The Observer article suggests that the authorities are pursuing the 'architects' of the exotic financial instruments that helped to cause the credit crunch. I would suggest that the architects merely designed the tools for others to use. Isn't it the case of the bulldozer equally useful in clearing brown field sites and removing settlements in ethnic cleansing?

Budget Deficit

The budget speech and articles in the Guardian which followed spoke of a mammoth deficit. This is not small beer by any stretch of the imagination.

If it came about because banks lent at high interest rates to people with no realistic means of repaying, we stand back and wonder. If these mortgages, sub-prime mortgages, were cleverly packaged with better fare and traded on, we sit back and wonder. If banks around the world invested in these bonds because they believed what it said on the tin, we sit back and wonder. If politicians now come along and blame the bankers, we should not sit back but ask how come the banks could lend as they did, sell the bonds they did and invest in the junk they did. Sure, they could have said no. But when everyone else was on the bank(d)wagon, it is brave man who stands on the side.

Surely the fault lies with those who allowed the creation of a banking world where all this could happen. Who deregulated? Brown was not alone.