We're bankers, not shopkeepers (unfortunately) Friday, March 14, 2008
It was a well-worn quote of scorn that Britain was a nation of shopkeepers.
The Wall Street Journal has now corrected the record, “No large country is more dependent on the movement of foreign money through its banks: some $2.4 trillion flowed in and out of the UK in 2006, an amount equivalent to the country’s entire annual economic output”. It goes onto highlight that “the financial sector accounts for more than one-fifth of all UK jobs”. The comparable figure from the US, home to the subprime crisis is just 6%.
So when the UK Chancellor suggests we will avoid a recession despite facing a global banking and credit crisis, I wonder what happy pills he is taking.