Britain's Economy Is a Disaster and Nobody Is Entirely Sure Why

[Sheilbh]

This truly seems bizarre, to have so few lending institutions. How could things have gotten to that point?

I think, though I could be wrong, that our retail banking sector has always been pretty oligopolistic. I don't know why.

[Admiral Yi]

I don't think it was oligopolistic during the Napoleonic Wars.

Were banks nationalized during your bout of post-war lunacy?

[Sheilbh]

Were banks nationalized during your bout of post-war lunacy?

Ignorant

No. They nationalised the Bank of England. But aside from that the Labour government generally wasn't that interested in banking or finance. They tended to intervene to stop mergers and takeovers but that was about it.

I don't think it was oligopolistic during the Napoleonic Wars.

Looking at a BofE paper, from what I can see in the late 60s there were 6 banks (but lots of building societies). Of the 16 clearing banks around in 1960 though, 15 are now owned by 4 banks. The City before Thatcherism was very un-meritocratic, not very efficient and not really to be admired, I think nostalgia about it should be avoided.

[MadImmortalMan]

That's still awfully few for such a big economy.


Maybe it's simply a holdover from the good old mercantilistic state monopoly days of the 19th century.

[mongers]

Looking at a BofE paper, from what I can see in the late 60s there were 6 banks (but lots of building societies). Of the 16 clearing banks around in 1960 though, 15 are now owned by 4 banks. The City before Thatcherism was very un-meritocratic, not very efficient and not really to be admired, I think nostalgia about it should be avoided.

As opposed to now ? 

[Sheilbh]

It's meritocratic and relatively efficient and competitive, at what it does.

[mongers]

It's meritocratic and relatively efficient and competitive, at what it does.

Define efficient in this context ?

Though I've got to give it you dealing those Mexican Narco dollars stole a march on many competitors.

[citizen k]

Daniel Hannan Destroys The 3 Unquestionable Myths Of Our Crisis

http://www.youtube.com/watch?feature=player_embedded&v=7ZpJeHN0_gw

[crazy canuck]

Daniel Hannan Destroys The 3 Unquestionable Myths Of Our Crisis

http://www.youtube.com/watch?feature=player_embedded&v=7ZpJeHN0_gw

listening to it now.  He is a good speaker.

[Valmy]

Daniel Hannan Destroys The 3 Unquestionable Myths Of Our Crisis

http://www.youtube.com/watch?feature=player_embedded&v=7ZpJeHN0_gw

So glad they still make Englishmen like that guy.

[Sheilbh]

Dan Hannan

[citizen k]

Dan Hannan

Excellent critique of his comments.   

[Sheilbh]

I've not watched it. I read his blog occasionally, mainly for the insight into the EU-obsessed wing of the Tories. He's a very good Oxford union debater. He'd even write a mean column for the Economist.

[crazy canuck]

Dan Hannan

I have no idea who he is.  What is the problem with him?

[MadImmortalMan]

It was arguably the oligarchic banks in England that made it the preeminent power of the age in the 17th and 18th centuries. Maybe they just didn't want to change what had worked for so long.