Brittons rates of insolvency is going through the roofs and the industry experts believe that the numbers are actually higher than reported. While going bankrupt is is painful for most, I think that it is a necessary aspect of the market that should be allowed to run its course. Brittons like Americans have distorted their time preference and investments for many decades, borrowing heavily at artificially low interest rates in order to finance their spending binges and businesses. With the current government attempt at austerity and the rise of interest rate, it is becoming clear that many " Englishmen" cannot pay their debt.
The interesting aspect of insolvency is that it wipes out the debt, liquidates malinvestments, and allow capital to pursue true value. Government should therefore allow the market process, that is bankruptcy, to run its course!
Most English big financial institution are over leveraged and greatly indebted and should also be allowed to go through a process of restructuration.
The only shame about this entire process is that it is the little man, the household who is " allowed" to feel the pinch of bankruptcy while the bankers are being bailed out at their expenses. LET THEM FAIL!
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