Will Hutton\’s against trade

That\’s the only conclusion that can be drawn from this:

Bank assets have to shrink and the economy has to grow, and gradually the size of the banking sector in relation to the rest of the economy will become more manageable and less risky.

If the banking sector was solely focussed upon the domestic economy then he\’s have a point. But we provide banking (OK, financial services) to half the world, in the same sense that Rolls Royce provides jet engines to a third of it and Germany machine tools to some segment.

So he\’s actually arguing that Britain\’s number 1 export sector (in terms of net exports this is true) should shrink: that the trade deficit should worsen.

What\’s a great deal more amusing about this prognistication is that of course, Willy is the bloke who keeps telling us that banks have to finance industry: that is, compete for the financing which is currently done by markets (equity, bond and commercial paper) thus growing banking assets substantially.

Sorry, but you cannot have it both ways, a shrinking banking sector and an insistence that they extend their activities into an entirely new sector as well.

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