By Jason Moore

IT is almost three years to the day since the world was introduced to the words “credit crunch” and we are still no nearer to see an end to this recession. Still governments are talking about reforming the banks and still little or nothing has been done. This is a bank-led recession and to some extent it is the banks which should help resolve the situation. Banks are still not lending money; they have learnt from their mistakes of the past but at the same time they are lending billions of euros to countries like Greece, which sooner or later will default on its payments. I think what is needed is a return to old style banking. You have limited borrowing and saving is encouraged.

If banks want to carry out risky-style investments this is their problem and basically tax-payers should not have to foot the bill if things go wrong. Governments across the world need to introduce tough legislation which makes another credit crunch impossible by targeting the banking system. The British government has already taken some action but perhaps more needs to be done. The problem with the last decade is that everyone was spending money they didn't have, from the banks to local authorities. Now, we find that our local authorities are heavily in debt and that further credit is no longer available. This is a nightmare scenario. Unfortunately what is needed everywhere is some good old fashioned housekeeping with everyone living within their income and not spending excessively.