What is needed urgently is more bank capacity. We need to create a network of public/private banks to support industrial and infrastructure investment and we need a wholesale transformation in the short-term, risk-averse way in which British banks have treated manufacturing companies for more than a century.
Immediately after he\’s peddled the rumour that the German banking system is bust he then insists that we should have a banking system like that of, umm, Germany.
Look, manufacturing just isn\’t all that important a sector of our economy. Well under 20%. Sure, there might be doom and gloom for the sector as there was in 1930, but because manufacturing is a much smaller part of our economy than it was in 1930 this has a much smaller effect on the total economy than it did then.