Friday, 12 April 2013

Thatcher Legacy + Benefits for London Financial Center


Early this morning, I listened to a hefty debate on Radio 4 about the death of British history icon (for some)  the Iron Lady, Margaret Thatcher.

There are two types of people in Politics they discussed.
  •       Those who want power
  •       Those who do
It has to be said that despite all the arguments pro/for, she was a lady who went into politics and ‘Did’
.  

Good things for UK Financial sector?


·         Under her command, the Big Bang got rid of exchange controls (1981) which made London the leading financial center in the world. (Yay for Brits)
·         The WHOLE country improved, not just the city.
·         A friendly reminder to skeptics is that it in fact wasn’t until 2000 that regulations/controls etc were proved inadequate.
·         Free market policies were embraced by the government

However,

For all the critical stuff, as the banks were pilling on the wealth ,they were also taking on risky investments. Think  back to RBS, Lloyds , Northern Rock. Perhaps the British banks took this free market slightly too liberally and are somewhat still trying to recover.

A lot of debates suggest that the deregulation was the backbone to the financial crisis. But hey, controversial at its core, there are always two sides to the coin and not everyone will agree. That’s just how life is.

In terms of Banking crisis : This is not a new phenomenon.
Malpractice, greed etc have always been around, and always will be.

For now, instead of getting very critical, let us just wish her soul peace and use history to make better decisions.(Or at least try)