Bank of England governor blames spending cuts on bank bailouts(UK)

[CHIMO]

Mervyn King has risked reopening the bitter argument over blame for the financial crisis by saying that government spending cuts are the fault of the City and expressing surprise there has not been more public anger.

The governor of the Bank of England said that people made unemployed and businesses bankrupted during the crisis had every reason to be resentful and voice their protest. He told the Treasury select committee that the billions spent bailing out the banks and the need for public spending cuts were the fault of the financial services sector.

"The price of this financial crisis is being borne by people who absolutely did not cause it," he said. "Now is the period when the cost is being paid, I'm surprised that the degree of public anger has not been greater than it has."

King has repeatedly pointed the finger at the City since the crisis erupted in 2007, but this was the first time he blamed bankers for the coalition's spending cuts.

http://www.guardian.co.uk/business/2011/mar/01/mervyn-king-blames-banks-cuts

[muriel_volestrangler]

1. You might think this is obvious, but the Tories and media have been blaming Labour spending

for the 'necessity' of making cuts, so frequently, that some people repeat that as if it's obvious. So it is good to see King, who has been accused of being too much on the Tories' side about the cuts, making it clear it was the banks' fault. Labour's biggest economic failing was not regulating them properly.