Quoth Alistair Darling:
The Financial Services Authority has announced a further increase from tomorrow to the compensation limit for retail bank deposits to £50,000 per depositor, which means £100,000 for joint accounts. That measure will ensure that 98 per cent. of accounts are fully covered.Now, quoth Iain Duncan Smith:
At the Dispatch Box, the Chancellor mentioned, quite rightly, that our protection covers about 98 per cent. of all depositors, but he will also recognise that we have significantly more money on deposit than Germany does. The reality is that that 2 per cent. represents a very significant amount of money. What concerns me right now is that, given the febrile nature of the markets—watching little things and then panicking—if they see any flight of capital, even that 2 per cent., towards Germany, it could cause another stampede and another crisis. I recognise the Chancellor's problem about indicating what he may or may not do, but does he not recognise that that 2 per cent. alone is perhaps enough to tip over the markets if they saw a flight of that money to, say, Germany or even Ireland?So, what they are saying is that the vast majority of accounts in the UK hold less than £50,000 (£100,000 for joint accounts) in retail banks.
What they are saying is that there is an incredible disparity of wealth - but that the very wealthy have the capacity to cause crises by the overwhelming might of their money.
Let's be clear, what this means. Economic crises are not natural phenomena, they are the results of the owners of society exerting their influence. they are profoundly political - the wealthy making us dance to their tune. The wealthy on strike. Capitalism causes a crisis by its very existence, starvation, starvation related diseases, gross poverty, curtailed life-spans, wars - they are all ignored as background noise. When the capitalists feel the pain, then we are all made to jump.
This isn't a case of being for or against bail-outs - after all, who can blame the man with a gun to his head - but a matter of being for or against capitalism. Our only demand must be: "End class society!" else this will all happen again. It is not a glitch, it is politics, the political decision of the real voters to vote with their feat.