"It never ceases to amaze me, both about Labour and socialists in general, in their inability to get their heads around whose money they were actually playing with. It's like dealing with demented toddlers in a sweet shop who are prepared to gorge themselves until sick without realising the consequences to those who have to pay for the gluttony and waste."
A sentiment I share, and I don't see how New Labour can escape their culpability in the dire state of our economy, all the more so, because this is what Labour, New and Old, always does. At heart they are socialists, and think they can dodge economic reality like Boxer Rebels thought they could dodge bullets.
Whether as an individual, a family, a company or a nation, you have to spend with regard to what you earn, and even if access to credit is undoubtedly useful, it comes with a cost which must be reckoned. Labour claimed it was investing this borrowed cash, but most of this spending was no more an investment than someone on the dole buying a plasma TV on the credit card.
That said, a commenter chez Quiet Man brings up the role and conduct of the bankers, which is indeed relevant. The 'light touch regulation' in the financial sector, which he attributes to rightwingers, ignoring how much of this happened under Clinton and Blair, has been instrumental in creating the world financial crisis of the last two years, as Gerald Celente discusses in the clip below, and as the Cassandras warned it would, back when the fire doors were being ripped out of the building. But none of that exonerates Labour for their reckless pursuit of economic fallacies a la John Maynard "in the long run we're dead" Keynes.