The definition of lunacy is continuing the same actions over again and expecting a different outcome.
Gordon Brown was reported to be preparing to pump billions more pounds into the banking system amid mounting evidence that his £37 billion part-nationalisation has failed to get credit flowing to home-owners and businesses.
As banks continue to restrict lending, Alistair Darling, the Chancellor, has been considering a range of options including cash injections and offering banks state guarantees to raise money privately.
There\’s a school of thought that says we were due a credit crunch and a credit crunch we\’re going to have. Preserve the banking system, yes, so that when the great deleveraging has finished we still have a system able to intermediate between savers and borrowers. But that there\’s pretty much nothing that anyone can do to stop the actual deleveraging itself.
Not sure how true that actually is: this level of economics is well above my pay grade. But I have a feeling that we\’re about to find out how true it is.