Ritchie\’s right! It is banking shrinking the economy!

However, not in quite the manner that he thinks.

The UK economy is currently 4pc smaller than its peak in March 2008 and 2.8pc smaller than in September 2008, when Lehman Brothers collapsed and Britain\’s banking industry began its long decline.

Of the 2.8pc fall, the contraction in banking activity has accounted for one percentage point, analysis of Office for National Statistics (ONS) figures shows.

The impact banks have had on the economy is completely disproportionate to the industry\’s size. Banks account for just 5.1pc of national output, but are to blame for around 35pc of the national decline even excluding the knock-on effect of tighter credit on businesses and households.

Ritchie tells us, repeatedly as you will know, that banking is too important a part of the UK economy. It must be shrunk.

It is shrinking.

And it\’s the very fact that banking is shrinking which is responsible for a goodly part of the contraction in the size of the economy.

Amusing of course that he now whines about getting what he desired.

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