So, public policy has been that the banks should be shovelling money out the door. Jeez lads, just lend to anyone. Please. Puhleeze!
So, they do.
The result has been a bonanza for banks as they boom at public expense, yet again.
The idea that we might need a new tax on banks -as was appropriate after 2009 – seems to be made by this simple fact that banks are capturing public money for private gain, yet again.
A booming bank tax, anyone?
Because they’ve done what we asked we should now tax them?
Given that this is Wednesday the Tuesday argument that there’s no inflation so there should be no rise in taxes doesn’t apply. We’ll wait until Thursday for MMT to be true again.