The Economy

Part of Council Tax Rebate – in the House of Commons at 5:38 pm on 31st March 2009.

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Photo of John Reid John Reid Labour, Airdrie and Shotts 5:38 pm, 31st March 2009

The right hon. Gentleman has succinctly described the causes of this situation, and I do not want him to go off that point. Basically, he is saying that people were lending money they did not have to those who should not get it, in a form that neither side understood, for returns that were too high and with a risk that was too high, and then persuading themselves that if they spread-bet all that across the world, everything would be fine. If they had gone to Ladbrokes, they would have been told by any spread betting expert that if a bookmaker is accepting all the money on a hot favourite and all the other horses in the race have only three legs, they can reinsure all they like, but ultimately they just lose a fortune.

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