‘In short, ‘ending austerity’ is possible with significant but not unrealistic spending increases. What makes a promise to end austerity politically difficult is that it cannot be achieved without tax rises if the government is to keep to its fiscal rules and commitments.’
[Goodwin] told Alistair Darling that conditions were very bad and that RBS had been considering whether to stop lending to customers. Darling asked Goodwin what would resolve the situation and Goodwin said ‘long-term funding’. How ‘Fred the Shred’ continued to ignore the warning signals, nevertheless.
To mark the tenth anniversary of the financial crisis, Sceptical Scot’s new series focuses on home-made follies; the extraordinary mistakes made by two once revered and typically prudent Scottish institutions: the Bank of Scotland and the Royal Bank of Scotland.