Hutton's piece-def worth a read

I was struck by Will Hutton's piece in yesterday's Observer on the financial crisis.It is well worth a read and even if you do not agree with all his proposals,I think that there are lessons in their for us all.

The past 20 years has seen an unparalleled boom in the money markets. As the free market blossomed, so too did cheap debt, huge bonuses and ostentatious wealth. Now, as our financial system lies on the brink of collapse, it is time to build a new one, based on fairness instead of naked greed, and with long-term commitment to building businesses and supporting investment

He maintains that the current crisis

has been 30 years in the making - a Gordian knot of libertarian free-market fundamentalism, unregulated globalisation, the collapse of social and political forces committed to fairness, the explosive impact of financial innovations such as 'securitisation', and sheer greed. Each has contributed to the fiasco - and all now need to be unravelled if the economy is to have a sustained recovery.

but now he says

the roof has fallen in, setting up potentially the most dangerous vicious circle since the Great Depression - and it could be most vicious of all here in Britain. The belief that securitised loans could always be sold or insured has proved illusory. Worse, too many have junk assets as security - commercial property, buy-to-let property, junk American loans and overstretched buyers in the residential property market. The debt will stay toxic until the economy recovers again.

Can the Pope sort out our economy?

Will Hutton writing in this morning's Observer claims that

when it comes to reforming the unstable market economy, the Catholic church is leading where New Labour fears to tread

Pointing out that

Catholicism has outlasted both communism and socialism

and

although the religion's critics are right to point to the paradox of its championing of the poor with its own love of the good life and exquisite art, together with its extraordinary capacity to be as deft as any secular politician in the pursuit of its aims, there is an integrity, appeal and spirituality about its purpose that even an agnostic non-Catholic like me has to concede

His argument is that unlike New Labour

although the religion's critics are right to point to the paradox of its championing of the poor with its own love of the good life and exquisite art, together with its extraordinary capacity to be as deft as any secular politician in the pursuit of its aims, there is an integrity, appeal and spirituality about its purpose that even an agnostic non-Catholic like me has to concede