THIS recession is almost three years old and still there is no light at the end of the tunnel. The economic meltdown which engulfed the western world was caused by the banks and three years later they are still being blamed as the culprits for the economic slowdown. Much of the money which Greece is getting in its new financial bailout from the European Union will go to pay interest payments to the banks on its enormous loans.
This money will be swallowed up in a space of weeks rather than months. It is the same story in Ireland. The banks are to blame. I thought that many of the leading banks would be forced to split their operations into two; basically normal banking and the more dangerous investment banking. This has not taken place. And still the leading financial institutions are refusing to lend money to small businesses. This is one of the principal causes of the ongoing economic slowdown. So why aren´t European governments tackling their banks and making them put their house in order? Until the banking industry is brought into line the recession is going to continue. In Britain large parts of the banking system are still owned by the government but still little progress is being made. Why? It is a nightmare scenario. Greece, Ireland and Portugal and to a lesser extent Spain and Italy are going to continue experiencing financial problems until the banking industry is put right, once and for all otherwise the recession will continue.