Proceeding contribution from Lord Reid of Cardowan (Labour) in the House of Commons on Tuesday, 31 March 2009. It occurred during Debate on The Economy.
The Economy
The right hon. Gentleman has succinctly described the causes of this situation, and I do not want him to go off that point. Basically, he is saying that people were lending money they did not have to those who should not get it, in a form that neither side understood, for returns that were too high and with a risk that was too high, and then persuading themselves that if they spread-bet all that across the world, everything would be fine. If they had gone to Ladbrokes, they would have been told by any spread betting expert that if a bookmaker is accepting all the money on a hot favourite and all the other horses in the race have only three legs, they can reinsure all they like, but ultimately they just lose a fortune.
Secondary information
- Type
- Proceeding contribution
- Reference
- 490 c827
- Session
- 2008-09
- Chamber / Committee
- House of Commons chamber
- Subjects
- Debts Banks Capital investment Credit Bank of England Government assistance Financial Services Authority Economic situation International Monetary Fund Loans Regulation Tax avoidance Taxation Economic recession G20 World economy
- Link
- View this Proceeding contribution on www.publications.parliament.uk
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- 2024-04-22 00:52:24 +0100
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